The Perks of Solar Repowering

Although developers design solar projects to stand for decades, even the best panels and components degrade over time.  

The average solar project experiences less than 1% degradation in performance annually. It might not sound like much, but those small performance declines compound over time. Often, solar panel performance is the main topic, mostly because they’re what’s generating the electricity. However, they’re only one part of a larger ecosystem, of which any component can become a failure point. 

For example, solar panel racking should outlast the panels, but can suffer from mechanical issues. This is especially true for single- and double-axis trackers that rely on motors to point panels at the sun throughout the day. 

Similarly, inverters often have shorter lifespans than other components, with manufacturers offering only 5- to 15-year warranties. When inverters fail, it can lead to performance declines, system damage, and outages. In this scenario, the project doesn’t produce as much – or any – power, leading to lost revenue and potential penalties. 

Even something as benign as photovoltaic (PV) wire can fail in the field. This is why teams perform regular partial discharge (PD) and insulation resistance tests on AC and DC systems, respectively. Tests like these quickly identify insulation defects on the wire that could lead to shorts or component failure. 

To combat failures and lost return on investment, solar operators are looking to solar repowering for their projects. This process allows operators to replace worn parts, boosting efficiency and extending the project’s lifespan while reducing part failures. 

What is Solar Repowering? 

Solar repowering involves upgrading older, worn, or underperforming parts like panels, inverters, wire, racking, and more with new ones. Repowering, unlike decommissioning and building new, utilizes the same land and good parts to improve efficiency, integrate new technology, and increase a project’s lifespan. 

In general, it’s less expensive to repower a solar site than to decommission it and build a new one. New sites require new permits, taxes, and land leases, but repowered sites work with what the site already has. The project infrastructure is already in place, functional, and connected to the grid — all it needs is sprucing up. That often means smaller project scopes, timelines, and costs, with higher upsides once the job is complete. 

Generally, the amount of savings repowering provides depends on project scope, materials, and the system’s current condition. As solar projects age, the cost to refresh the site increases. Projects with less wear and tear are usually less expensive to replace, since there’s less to worry about. 

Another benefit of repowering versus building new is that it gives operators opportunities to employ new solar energy technology. This means investing in more efficient panels, improved inverters, and adding battery energy storage systems (BESS) to store power. 

What Are the Pros and Cons of Repowering? 

Though repowering can come with plenty of upside, not every project is a candidate. 

For example, projects nearing the end of their usable lifespans may not benefit from a full retrofit. In other cases, the benefits of repowering may not offset project costs and lost production. Conversely, efficient projects that still perform well may not need upgrades yet. 

But for many projects, repowering can turn back the hands of time. 

Why Repowering Makes Sense 

The process is more cost-effective than building a new site.  

Compared to leasing land, filing for permits, dealing with tax incentive concerns, and buying all-new parts, fixing what you have is a bargain. 

The overall cost depends on the extent of upgrades, and some parts are easier/cheaper to replace than others. For example, replacing PV wire or inverters is much less expensive than purchasing new panels. 

Plus, as previously mentioned, the critical infrastructure is already in place, including roads and interconnection points. This also applies to several other site-specific expenses, including land purchases, initial permits, and taxes. 

Smaller scopes make for faster timelines.  

Unlike starting from scratch, replacing worn parts reduces overall scope, timeline, and cost. 

Racking is a great example of a component that can withstand the test of time. Fixed-tilt racking that is still stable, corrosion-free, and secure likely doesn’t need replacement. However, single- or double-axis racking systems may require new trackers at some point. 

PV wire is another component that might not need replacement during a repowering project. If workers installed the wire correctly and the insulation is undamaged, PV wire can operate safely for decades. 

Repowering sites improves performance. 

Solar site repowering isn’t always about replacing broken parts; it’s about utilizing new technologies and components we didn’t have before. Today’s solar panels are much more efficient than they were only 10 years ago. But even a small uptick in performance pays dividends over the life of the project. 

It also allows companies to add on emerging technology, including advanced monitoring systems, automated processes, and BESS. These upgrades make the site a more consistent power generator while prolonging the project’s lifespan. 

Helps operators honor power purchase agreements (PPAs).  

When independent power producers (IPPs) sign PPA agreements with utilities, they may agree to produce a certain amount of power. If they fail to reach those benchmarks, they may face penalties or other fines. 

Though repowering causes temporary performance dips at sites, systems perform much better once the work is done. Completed projects generate power above the agreed threshold, preventing costly fines or buying supplemental electricity. 

Why Companies Might Reconsider Repowering 

Some critical components may be obsolete or unavailable.  

For smaller, older sites, this may mean replacing central inverters with new string inverters. While central inverters were popular for early projects, those parts have fallen out of favor for improved designs. On top of that, the manufacturer may no longer produce those components — or even exist. 

Older solar projects also face the problem of operating at lower voltages than current sites. For example, they may operate at 600V DC when the industry has pushed ahead with higher working voltages. 

Replacing one component might start a cascade of changes.  

Sometimes, changing out one outdated or weak component may lead to other, more expansive, updates across the site. 

Using the central inverters as an example, replacing them with new string inverters also means updating grounding systems to support them. The work might also trigger further changes to interconnection processes or even require reengineering aspects of the project. 
 
More changes also mean higher project costs. Although operators typically build operations and maintenance budgets into a solar project’s lifespan, repowering is a curveball and large-scale repowering jobs may damage the site’s ROI. 

The National Electrical Code (NEC) for renewable energy projects has likely changed.  

A lot can change over the course of a decade, especially for the burgeoning solar industry. As solar technology improves and matures, the NEC has kept pace, updating NFPA 70 several times — most recently for 2026. 

The NEC governs every facet of electrical systems, including updates to technologies, power outputs, and safety features. In past iterations, we’ve seen Articles 690 (Solar Photovoltaic System Requirements), 705 (Interconnection of Power Production Sources), and 706 (Energy Storage Systems) go through significant changes. Our current codebook, NEC 2026, has fewer large-scale changes and more tweaks to existing rules. 

If developers decide to upgrade older solar sites, they may run into code issues. Bringing a site up to 2026 standards may mean additional expenses and a larger project scope than initially expected. 

Recycling is still an issue we’re trying to solve.  

Solar panels, wind turbines, and batteries are becoming mainstream, but they still face several challenges, including recycling. PV panels in particular have become a sore spot for solar site operators, mainly because of their composition. 

Solar panels contain several high-value critical minerals, including silicon, copper, silver, and more. Recycling these materials keeps the minerals and metals in circulation and maintains stocks, reducing the need for new mining. But while companies CAN recycle panels and other components, it can be difficult or unprofitable. 

The silver lining is that renewable energy recycling is increasing in the United States. As the industry matures, more panels can avoid landfills while we recover critical minerals.  

We still have to be cognizant of the environment around us.  

Like new-build projects, repowering may damage land and habitats if crews aren’t careful. Teams should perform all work on any repowering site as carefully and cleanly as possible to limit potential issues. 

However, repowering projects also allow developers and operators to improve the environment around their solar sites. For example, early projects often didn’t employ native flora for beauty or protection.  

Native flowers, shrubs, grasses, and other plants offer solar sites plenty of benefits. With help from a local horticulturalist, they promote natural habitats and pollinator growth while preventing soil erosion. It takes several years for the plants to mature, but once established, they improve a site’s beauty and functionality. 

Repowering Offers Operators Another Option 

Aging is inevitable, but operators and developers don’t have to sit helplessly watching their sites fade over time. 

Repowering processes offer a crucial third option beyond leaving sites to fall into obsolescence or building from scratch. Partial builds cost less than starting over, and the scope leads to shorter downtimes. Companies also avoid delays caused by permitting, approvals, and other procedural work. 

But as with a new build, solar operators need to know what they’re getting into. What might look like a simple upgrade to one component can quickly cascade, turning into a larger, more expensive job. Additionally, as the scope increases, so does the risk of running afoul of updated NEC codes. 

Despite the risks, solar site repowering is a worthwhile way to keep projects performing better for longer. Once back online, those sites will produce reliable, clean energy for years to come.

How Can Solar Developers Reduce Labor Costs?

It’s been about a year since President Donald Trump signed the One Big Beautiful Bill Act (OBBBA) into law, drastically cutting federal support for the solar industry. 

The move immediately made ITC and PTC incentives harder for solar developers and EPCs to access. It also shortened the timeline for projects to qualify for them, and sunset deadlines and tax incentive timeframes. 

While the initial shock left the industry reeling (especially residential solar installers), overall solar growth has been resilient. The rules are different, but savvy solar companies are rolling with the punches. 

However, losing federal tax incentives highlights a glaring issue: projects just became more expensive. With that fact in mind, developers and EPCs need to control costs while maintaining quality standards. 

Creative Cost-Cutting 

Fewer tax credits and incentives are available, but solar EPCs can still maintain a positive internal rate of return (IRR). 

IRR measures the profitability of a proposed solar site over the span of its usable lifetime, and includes factors like: 

  • The project’s initial cost 
  • Operations and Maintenance expenses 
  • Potential and realized cash savings (rebates, electricity sales/savings, and other benefits) 
  • The project’s usable lifespan – typically 25-30 years 

With so many variables, developers can pull levers in one area to compensate for issues in another, offsetting or improving the overall IRR. In this case, as rebates and tax credits eventually dry up, we can lower costs and improve maintenance by maximizing labor. 

Why Is Labor the Next Cost-Saving Measure? 

We’ve seen firsthand how quickly the solar development landscape can change – for better or worse. 

According to the National Renewable Energy Laboratory (NREL), solar power’s levelized cost of energy (LCOE) has plummeted since 2010. Over the last 15 years, costs fell roughly 86% for utility-scale solar systems and 84% for commercial installations. The agency noted that prices fell quickly for several reasons, including lower system costs, better technology, and improved operations. 

But while hard costs plunged, soft costs like labor, permitting, and taxes have been more stubborn. 

For years, solar companies fought to hire as many employees as possible to support a rapidly growing industry. Today, the goal has evolved from having large staffs to efficient ones. 

In 2026, the goal for EPCs and developers is to maximize productivity and minimize overhead. Since hard costs can’t fall much lower, the next option is to reduce labor costs. For many builders, it means finding ways to standardize builds, automate systems, and modularize components. 

Reducing Solar Labor Costs 

Since solar companies can’t do much to reduce the cost of permitting, fees, and taxes, reducing labor costs is the next best option. 

To save on labor, we can either reduce overall headcount or improve productivity. Since reducing headcount is a drastic measure, optimizing installs is often a better long-term solution. 

But what can developers do to maintain operations while preserving bottom lines and IRR? 

Automate Installations When Possible 

Automation has been a lifesaver for many industries, as robots perform repetitive tasks, while allowing people to do higher-value work. 

Robots, artificial intelligence, and drones have many applications in the field, both physically and virtually. For example, robots can use GPS tracking to precisely dig pilot holes or move and install heavy racking. They can also precisely install panels onto racks, all under a worker’s watchful eye. 

With an unmatched blend of speed, accuracy, and dependability, automated robots and other high-tech gadgets are taking solar by storm. Companies like Terabase say their bots can automate construction, cutting costs and freeing workers for other tasks. Not only does the system double productivity, but Terabase says Terafab® work is safer and of better quality, too. 

Terabase is only one automation company, but it’s part of a burgeoning robotics industry. As the technology improves and automated system costs stabilize, expect adoption to rise dramatically. 

Lean on AI Mapping 

Artificial intelligence is a white-hot topic, so it’s no shock that solar companies have found ways to use it effectively. 

One of the easiest ways to implement AI into solar projects is to assist engineers with site configurations. Today, a team of engineers may create, test, and review potential solar project layouts, which is time-consuming and costly. 

With AI tools, solar engineers simply upload data and wait for the system to spit out results. Once the review is ready, the team checks its work to test the design’s feasibility. 

In this case, solar companies need fewer engineers for each project, allowing them to spread out across more projects. This increases productivity and shortens timelines for solar projects across the entire portfolio. 

Beyond site testing, AI is also helpful for creating digital twins of solar sites. Digital twins are exact virtual versions of physical objects or designs and help engineers spot potential problems before breaking ground. These replicas mimic planned sites, giving teams visibility into what the final project might look like and how to improve it. 

AI is expanding quickly, but even supercomputers get answers wrong sometimes. Project engineers should ensure the data fed to the system is accurate and double-check every output. However, if everything checks out, artificial intelligence can improve performance and mitigate fail points during development and operation. 

Pre-Fab and Modular Solar Materials 

When time is money, the easiest way to reduce labor costs is to shorten timelines. 

One way to accomplish both goals safely is to reduce the amount of boots-on-the-ground time workers spend assembling solar installations. Luckily, you can modularize most parts of a utility-scale solar site, including foundations, racking, and even PV wire. 

PV Wire 

PV wire is a small part of the overall solar project cost, but plays an oversized role in the project’s performance. 

When workers field-install PV wire connectors, it slows them down and may lead to potential mistakes. These mistakes can result in loose fittings, reduced performance, and even arcs, sparks, and fires. 

Pre-fab PV wire eliminates a critical fail point during installation. Manufacturers can bundle and fit PV wire with pre-tested, uniform connectors for fast field installation. Ultimately, pre-fitted connectors and bundled wire reduce installation times and increase project quality. 

Racking 

Racking is a durable, weather-resistant framework that holds PV panels in place. Depending on the need, crews can install fixed-tilt or single/double-axis racking to maximize energy generation. 

Like PV wire, workers can build racking systems off-site, then deliver them to the jobsite for installation. Developers can also attach pre-fab racking to modular foundations or ground-mount systems to further streamline processes. 

For developers, pre-fab racking takes additional risk out of the project. First, workers don’t have to worry about weather delays slowing them down as they weld pieces together. Secondly, critical welds and other delicate fabrication work are happening off-site, ensuring every weld passes inspection. 

Lastly, because these systems install more easily, solar EPCs can use less experienced labor and still maintain speedy production. 

Solar Panels at Sundown - Sun-Pull Wire (Photo by Gino Geruntino)

eBOS, Simplified 

In 2026, simplicity and speed are paramount. Thankfully, companies have no shortage of modularized parts. 

Modularization helps developers move quickly to bring sites online while saving time, labor, and headaches. But beyond making initial set-up a breeze, pre-fab parts come in handy during maintenance as well, reducing downtime when something needs replacing. 

So, which eBOS parts have pre-fab options available? 

  • Combiner boxes with customized string configurations 
  • Wire harnesses, clips, and brackets to hold PV wire in place 
  • Factory-molded and installed field connectors for safe, secure connections 
  • Factory-made concrete ballasts reduce weather-related risks and debris affecting concrete integrity 

In each case, pre-fab parts keep as much work off-site as possible. When done well, developers need fewer workers to do more work while maintaining safety. Plug-and-play pre-fab parts and pieces later reduce downtime and maintenance costs by being easy to install and replace. 

More Focus on Standardization 

Standardization, as the name implies, strives for similarity. 

The idea behind standardization is that it creates familiarity over time. Once workers understand how to work with the assigned parts and pieces, they can quickly and confidently perform work across any site using those parts. 

And, like modular parts, standardization creates simplicity. Complex installations require more expensive workers, more time learning new systems, and longer development timelines. When developers can simplify the process and components used at each location, workers can get more done each day. 

Long story short, simple saves time, money, and effort without sacrificing quality and reliability. 

Working With the Landscape 

Sometimes, investing in the right spot to build is the easiest way to save time and labor costs. 

Usually, this means looking for stable locations where the ground requires little prep work. Excavating, moving and grading land, and adding infrastructure takes significant time and cost. 

To reduce labor costs, we can start by finding easier locations to build on. Brownfields like landfills, coal mines, and other locations, sometimes already have infrastructure from previous uses. From roads and substations to other land development, these sites can supercharge solar project timelines. Pre-established substations also make it much easier for solar sites to interconnect to the grid later. 

Companies can also look for locations where digging and grading may not be necessary. Crews can avoid excess work by using pre-fab foundations or ballasts, or by using racking systems that work with steeper slopes. In both cases, crews can remove a step or two from the preparation process, cutting crucial time from the timeline. 

Controlling Labor Costs is Possible 

Despite declining federal support and financial incentives for large-scale solar development, solar energy companies still have wiggle room. 

Today’s economy is about doing more with what you have and prioritizing safe, efficient installs every time. With strategic investments in emerging technology and approaches grounded in simplicity, developers can reduce labor costs without losing quality. 

The clean energy industry has the opportunity to embrace cutting-edge technologies, including artificial intelligence. AI is useful in many instances, from checking permits and creating digital twins to remote monitoring on completed sites. In each case, technology frees up engineers and workers to focus on higher-caliber tasks. 

Additionally, robots can fill roles that recruiters couldn’t hire for. The solar industry still struggles to find talent, so supplementing teams with automated robotic solutions makes sense. Robots are fast, accurate, and meticulous; when supported by eagle-eyed workers in the field, projects move faster without forfeiting safety. 

Keeping the Industry Moving 

Ultimately, reducing labor costs for solar developers and EPCs provides massive benefits for companies and the industry. 

More efficient labor improves the bottom line, streamlines project timelines, grows profit margins, and enhances scalability. And with so many large-scale U.S. initiatives, including data centers and electrification efforts, solar has no time to waste.

NEC 2026: What Solar EPCs and Installers Should Know

Every three years, the National Fire Protection Association (NFPA) updates NFPA 70, AKA the National Electrical Code (NEC). 

True to its name, the NEC covers every facet of electrical safety, and each release brings new changes, additions, and clarifications. For the solar industry, Section 690 comprises the bulk of our guidelines, though other sections, including Section 705, also apply. 

When the NFPA released NEC 2026, there were fewer widespread changes for the solar industry than in previous rounds. This is welcome news for developers and operators, because as the industry matures, the rules governing it have become more stable across the solar landscape. 

For EPCs, developers, and operators, seeing so few tweaks to Section 690 is a boost after several rounds of wholesale changes. But what exactly has changed in the most recent NEC, and what do solar EPCS, installers, and operators need to know? 

Diving Into NEC Section 690 

Most of the minor changes made to Section 690 were meant to clarify or simplify rules for installers.  

Section 690.4 – General Requirements 

The largest change in this section simplifies calculations with fractions of volts or amperes. 

Installing PV Wire at a Solar Site - Sun-Pull Wire

Under the updated rules, workers can round their final calculations to the nearest whole number when less than .5 volts or amperes. A similar rule already applies to other NEC sections about branch circuits, and now also applies to PV installations. 

So, how does the new regulation work? Let’s say the final calculation for a given circuit’s current is 10.3A. Under the new NEC provisions, you could round the current down to 10A. 

The change has several applications for electrical workers. Voltage calculations help determine temperature limits, while current dictates temperature or conduit fill rules. 

Section 690.8 – Circuit Sizes and Current 

In Section 690.8, there are changes to maximum currents, mainly in reference to minimum wire sizes. 

Under the 2023 NEC, PV systems over 100kw could employ electrical engineers to help determine maximum currents. Once completed, those engineers would need to document and stamp any work they did. NEC 2026 offers similar language but removes the 100kw size reference. This means any size project can use calculations furnished by an electrical engineer. 

So, why does the project size and engineer documentation matter? Section 690.8 outlines the smallest conductors a project can safely use. By removing the 100kw barrier, it opens the doors for smaller projects to find cost savings on their sites. 

Keep in mind that minimum wire size calculations may not change much for smaller projects. There is definitely value, however, for large-scale projects using miles of large-gauge copper wire. 

More in Section 690.8 

Section 690.8(A)(2) covers terminating circuits to Electronic Power Converter (EPC) Inputs. 

EPCs are generally inverters in a PV system. When workers size conductors for termination at the input of an inverter or another electronic, there’s math to do. Typically, we take our PV values and multiply them by 125%, then again by 125%. In total, we’re multiplying values by 156% to determine conductor size for the current they’re carrying. 

Changes in this section allow workers to use conductors that more closely match the currents they’ll likely carry. It also aligns more closely to how electricians in other fields handle current sources, including overcurrent protection devices (OCPDs). 

Under NEC 2026, the update rule streamlines the process. Now, the maximum current can match the EPC’s rated input current if it meets one of several criteria, including: 

  • If an OCPD not exceeding the conductor’s ampacity protects the terminating circuit to the EPC 
  • If the circuit’s maximum current complies with Section 690.9(A)(1) 
  • If the circuit is 690.9(A)(3) compliant 

The good news here is the new 690.8(A)(2) rule may reduce the conductor size needed for an inverter or combiner box setup. In that case, projects could see lower overall PV wire costs. 

Section 690.13 – PV System Disconnecting Means 

The update to Section 690.13 now requires disconnecting means to be in line with Section 705.20. 

Per Section 705.20: If the power source service disconnecting means meets the requirements of both 705.11 and 705.20(A) through 705.20(F), a separate source disconnecting means is not required. 

According to Section 705.20, installers can use breakers to cut the power to a solar system, rather than knife switches. Knife switches are an expensive add-on, so utilizing another available common cut-off method reduces overall installation costs. 

The changes simplify the rule, allowing a single disconnecting means to disconnect multiple power sources, including the PV system. Doing this reduces the need for an expensive shutoff system specifically for PV panels. 

Cost is important, but the bigger win is that solar energy sources are finally on par with other power sources like generators and batteries. 

Section 690.31 – Wiring Methods 

Traditionally, PV DC circuits couldn’t share a housing with non-PV circuits. That has changed slightly in the NEC 2026 guidelines. 

In some cases, PV and non-PV circuits can share a raceway, but only if there’s a partition to separate them. The goal is to keep everything operating safely, so the partition keeps wires where they belong. However, one rule of thumb is to ensure the voltage is the same across both wire types. 

According to Section 690.31, the code states: The other circuit conductors are part of a multiconductor jacketed cable with a jacket insulation rating equal to at least the maximum circuit voltage applied to any conductor installed within the same wiring method, and are used for remote control, signaling, or a Class 1 power-limited circuit associated with the PV system or energy management system.  

Long story short, make sure to have the right protections in place if you plan to house PV and non-PV wires or cables in the same raceway. 

More on Section 690.31 

The next point of clarification impacts how wire is used in different applications. 

NEC rules now state that PV wire is okay to use in any area you’d normally use RHW-2. In a solar energy system, RHW-2 can be a “hot wire,” carrying electricity from solar panels to inverters. 

Additionally, we now have permission to use distributed generation (DG) cable where codes already allow tray cable (Type TC). However, to comply with Section 690.31(C)(1), conductors must follow a couple of rules, including: 

  • Support or secure exposed conductors using cable ties, straps, hangers, or another approved fitting 
  • If installed outdoors, use materials listed for outdoor applications 

Workers must also support the wire every two feet, though they can secure wires larger than #8 AWG every 4.5 feet. 

Section 705.11 

Lastly, changes to Section 705.11 impact solar developers, but it’s more of a revert, if anything. 

In NEC 2020, we saw language explicitly referencing conductor length limitations when interconnecting PV systems to service panels — in other words, connecting the solar system to the larger utility system via a service panel. However, the 2023 NEC rules changed the language in Section 705.11, dropping the length limitation. 

Fast forward to today, and NEC 2026 has brought back the length limitation language from 2020. Now, total conductor lengths must be less than 10 feet when used in residential dwellings. Other applications allow for conductors up to 16.5 feet from the service panel to the PV system disconnect. 

With that said, there are situations where conductors may be longer than 16.5 feet, but require cable limiters. These limiters provide additional short-circuit and fault protection for the entire system. 

Keeping an Eye on 2029 

There is no better time to worry about the future than today. 

Now that the 2026 NEC is live, our attention shifts to 2029, when the NFPA plans to restructure the NEC. If you haven’t heard about the changes yet, you can find them listed in Annex L of the 2026 NEC.   

According to the organization, restructuring does several things. First, it allows the NEC to better adapt to and support new and emerging technology. Under the current code, new technology doesn’t always neatly fit. Reorganizing the codes makes it easier for the NFPA to make changes and improves usefulness for electricians. 

Some experts also believe a potential reorganization could align the NEC more closely with the International Electrotechnical Commission (IEC). IEC standards are used globally, serving as the national standard for many countries. And while both the NEC and IEC cover installation, use, and maintenance, potential shifts won’t align the two completely. 

At the very least, rejiggering the NEC will make the system more efficient. Of course, that efficiency will also make the codebook look a lot different. For example, the current 2026 NEC has nine chapters, but the 2029 NEC will have 23. Though it’s a drastic visual shift, the goal is to make life simpler for those who use the codebook the most. 
 
Despite visual changes, the solar power industry shouldn’t expect many changes in 2029. Solar energy is a maturing technology, and we can look forward to small changes and fine-tuning. But, as we’ve learned in our industry, change is the only constant we can rely on.

Where Do ITC and PTC Solar Credits Stand in 2026?

When President Donald Trump signed the One Big Beautiful Bill Act (OBBBA) last July, sweeping changes blasted the renewable energy industry. 

For an industry seemingly finding its stride, the OBBBA was a baseball bat to the knees. Nearly every sector was impacted, including solar, and developers, manufacturers, and consumers alike suffered. 

And while it’s true that misery enjoys company, the changes leave developers and consumers scratching their heads. Unfortunately, the solar industry must now find ways to expand with less federal help. 

Tax Credits Fading Out 

At a time when AI growth is causing electricity use to soar, the solar industry lost part of its appeal. 

The OBBBA brought drastic changes to tax credits and incentives for investing in solar projects. Most notably, it shortened the sunset dates for critical ITC and PTC credits originally extended by the Biden administration. 

But where does the industry stand in 2026, and what can we do to preserve years of positive momentum? 

Residential Solar 

If any part of the solar industry took the brunt of the changes, it was the residential solar sector. 

Under the Inflation Reduction Act, homeowners were eligible for a 30% federal tax credit applied to the cost of their solar installations and battery storage projects. However, to receive the credit for a battery project, applicants had to meet several requirements, including: 

  • 3 kWh installed with a new or existing solar project 
  • Exclusive solar charging for the first year 

Most notably, the Residential Clean Energy Credit (Section 25D) ended in December 2025.  

Once the OBBBA took effect, homeowners scrambled to get solar projects installed and operating by the December 31 deadline. Those who beat the buzzer and got their projects finished weren’t fully in the clear, however. To fully qualify, homeowners had to own the system AND have an income tax liability for the tax year. 

How Did the Industry React? 

Homeowners were left scrambling when news broke that the residential ITC cliff was approaching in a matter of months. 

With a short deadline, homeowners rushed to get solar projects online to take advantage of the ITC. Projects that missed the deadline weren’t as lucky, missing out on the 30% federal tax credit. 

Despite losing a massive residential solar incentive, there is still another way to qualify for savings. If they choose to, residents can invest in solar through commercial companies. In this scenario, businesses can claim a 48E tax credit through leases and power purchase agreements. 

The 48E tax credit does two things that help residential solar development. First, companies get to take advantage of federal tax incentives to encourage development. Secondly, businesses receiving the credits can pass along those savings to residents as lower-cost power. 

Where Does Residential Solar Stand Today? 

Without federal tax benefits, today’s homeowners are in a worse position than they were a few short months ago. 

Luckily, residents have a few other cost-saving avenues to make going solar more affordable. A growing number of states are stepping up to the plate, instituting trust funds, assistance programs, and other incentives.  

For those interested in going solar, the N.C. Clean Energy Technology Center’s DSIRE database outlines available state and municipal solar incentive programs. 

Commercial and Utility-Scale Solar 

Commercial and utility-scale solar didn’t suffer as much as residential, but developers are still licking their wounds. 

The problem here isn’t the elimination of crucial tax credits, but rather the timing of them. Under the Inflation Reduction Act, ITC and PTC credits were in place at current levels until 2032. Afterwards, there was a gradual multi-year sunset period. 

This is no longer the case with the OBBBA. Under the new law, Section 48E ITCs now face a cliff at the end of 2027. The timeline is drastically shorter, forcing companies to move projects along much more quickly and with fewer protections. 

For a wind or solar energy project to qualify for a 48E or 45Y credit, construction must begin by July 4, 2026. But the July 4 cutoff is more than a convenient deadline. Starting before then allows developers to qualify for a four-year safe harbor, giving them more time for the job. 

But missing the start date cutoff has dire consequences. Any projects started after July 4, 2026, must be fully operational by December 31, 2027. For large-scale utility projects, the timeline might be nearly impossible. Smaller community installations, however, could meet the December 2027 deadline with an efficient process. 

Are Safe Harbors Still Safe? 

Although developers and EPCs still have access to safe harbor coverage, they still pose issues. 

For example, the IRS recently changed the “Five Percent Safe Harbor” rule following Trump’s Executive Order 14315. Also known as “Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources,” the E.O. says, in part: 

“This includes issuing new and revised guidance as the Secretary of the Treasury deems appropriate and consistent with applicable law to ensure that policies concerning the “beginning of construction” are not circumvented, including by preventing the artificial acceleration or manipulation of eligibility and by restricting the use of broad safe harbors unless a substantial portion of a subject facility has been built.” 

So, what does this jargon mean, and what does the government now consider “appropriate and consistent?” 

In short, solar developers must use physical work tests exclusively to prove work of a “significant nature.” Thankfully, the thresholds apply to both on-site and off-site processes, including manufacturing parts and system installation. However, preliminary work like planning, research, financing, testing, permitting, and clearing land is NOT included. 

Although the IRS changed the rules, low-output solar facilities (less than 1.5 MW) still fall under the Five Percent Safe Harbor rules. 

Batteries Avoid the Brunt of Rule Changes 

In a surprising twist, battery storage is largely safe from new rules instituted by the OBBBA. 

Battery storage projects keep their tax credits through 2033, but installations must comply with Foreign Entities of Concern rules. The rub here is that many of the companies and businesses in the battery storage supply chain fall within FEOC. 

China is one of several countries deemed a “covered nation” in the FEOC, which also includes North Korea, Russia, and Iran. Though every case is different, companies involved with these four countries typically don’t comply with the rules. The result is an industry forced to find alternative solutions to meet domestic and friendly-nation production. 

Domestic battery manufacturing is still a nascent industry in the U.S., so short-term availability and sourcing may struggle. The good news is that as near-shore and onshore production picks up steam, we could see long-term availability. 

New Year, New Taxes 

Finally, 2026 also brings a few other new tax surprises, including Prohibited Foreign Entity (PFE) rules. 

Introduced in the OBBBA, the PFE rules impact the 48E ITC, 45Y PTC, and 45X manufacturing tax credits, among others. Basically, the rules prevent Specified Foreign Entities (SFE) and Foreign-Influenced Entities (FIE) from claiming tax credits. Similar to the FEOC rules, SFEs include China, Russia, North Korea, and Iran. 

Businesses should also be careful around the new Applicable Payment Rule, which states that if an SFE is paid in a way that benefits them and grants control over a facility, the taxpayer can’t claim credits. The reason this rule is important is that it’s effective within the first 10 years of a site entering service. 

Operators must be aware of every company they work with, because one mistake could lead to trouble. For example, if an operator makes site maintenance payments to an SFE-associated company, the IRS can potentially claw back 100% of the claimed ITC. 

Finally, there are new Material Assistance Cost Ratio Rules, which restrict the percentage of products sourced from PFEs for projects. Though similar to the domestic content rules we’re already familiar with, there is a key difference between the two. Unlike domestic content thresholds, Material Assistance rules cap total PFE components at 40%; otherwise, companies lose the credit. 

Additionally, the percentage of non-PFE content increases annually, making the benchmark harder to reach. 

Solar’s Fight Continues 

The One Big Beautiful Bill Act was a shot across the bow for solar and wind companies. However, it also generated opportunities for the industry to find creative solutions to complex energy production problems. 

Though residential solar lost its investment tax credits, homeowners can still participate in solar energy through PPAs and leases. They also have access to many state and local incentives, provided they know where to find them. 

At the same time, utility-scale and community solar companies have until December 2027 to complete their projects. Without a safety net, the best option most projects have now is to break ground before July 4, 2026. That would allow them to activate safe harbor rules and buy additional time. Similarly, battery storage may become more popular as it maintains its tax incentives, albeit with a few more strings attached. 

The point is, even though solar took a hit from the federal government, the future remains strong for renewables. Electricity generation and demand are issues in the U.S., and the grid is inflexible and unreliable. Meanwhile, tech companies have employed solar solutions to power massive data centers. 

At this point, the solar industry is entrenched in the United States. Despite headwinds, more doors will open for solar companies, either at the state or even local level. It’s just a matter of time.

The Perks of Owner-Furnished, Contractor-Installed (OFCI) Processes

In business, time is money; the same rule applies to solar development. 

Solar projects are massive investments, so finding innovative and simple ways to save money and improve profits is key. One method gaining momentum in the solar industry is “Owner-Furnished, Contractor-Installed” processes designed to save time and money. 

While it seems like a simple concept, OFCI relies on pinpoint accuracy and careful planning. But when it works, solar companies reap the rewards, and projects move much more quickly. 

So, what does “Owner-Furnished, Contractor-Installed” mean and how does it work? More importantly, who benefits from it and why should solar companies evaluate OFCI as a cost-saving solution? 

What Is Owner-Furnished, Contractor-Installed (OFCI)? 

OFCI programs aim to consolidate material sourcing with the solar EPC or developer rather than the subcontractor. 

Previously, subcontractors would source project materials, then mark up the cost when invoicing the EPC or developer. This process, known as Contractor-Furnished, Contractor-Installed (CFCI), allowed the subcontractor to use familiar components and increase margins. While the system worked for the subcontractor, the EPC paid more but had less visibility. 

By moving material sourcing to the EPC or developer, projects are inherently less expensive. And while subcontractors may lose some profit margin on materials, they benefit in other ways. 

OFCI Accomplishes Several Things 

For cost-conscious developers, the need for OFCI goes beyond saving a few dollars. 

OFCI streamlines and standardizes the sourcing process, making it easier to replicate and scale. When done well, it’s easier for companies to track projects, keep them moving, and shorten timelines. 

Reduced Overall Costs for Developers 

In the past, the developer paid marked-up prices for materials sourced by the subcontractor. 

OFCI takes sourcing out of the subcontractor’s hands and shifts it to the developer, eliminating upcharges and reducing overall costs. However, the lower cost comes with the caveat of more work. 

Developers must create and maintain relationships with distributors and manufacturers to ensure a steady supply of materials. They also need to coordinate with installers to make sure materials go to the right place at the right time. Under the CFCI model, the installer handles material delivery. Without that in place, the installer becomes dependent on the developer to keep the details in line. 

More Control = Consistency 

Every utility-scale solar project is unique, but there’s still room for standardization across job sites. 

In many cases, solar developers are working on multiple sites simultaneously. If each site uses different materials sourced by subcontractors, it can be hard to keep track of everything. OFCI solar processes give the EPC more control over the materials sites receive, simplifying sourcing across every project. 

By using the same components, EPCs can accomplish several goals. First, it reduces surprises because crews know what parts will arrive. Second, workers build confidence and comfort with specific components, helping them work faster. 

Finally, standardizing product selections makes ordering much simpler. The developer can verify stock counts and order materials as needed rather than chase suppliers for unique parts. 

Subcontractors Become More Effective 

OFCI systems can also positively impact subcontractors. 

When the EPC or developer orders pre-fabricated materials, installers spend less time in the field assembling them. Pre-fabricated solar photovoltaic (PV) wire, for example, may arrive at the worksite already bundled and with connectors attached. For workers, all they need to do is connect each wire to a solar panel and move on. 

But what about the subcontractor’s lost margin on sourced materials? In many situations, the subcontractor can easily replace the loss through speed. If the developer orders pre-fab materials, the team can move much faster in the field. This means less time assembling connectors, pulling single wires down long aisles, and performing other tedious chores. 

Additionally, using the same materials across multiple sites also creates familiarity and confidence. The result is a faster installation with fewer mistakes and delays. 

Over time, OFCI systems could lead to more projects completed annually. 

Developers Juggle Logistics 

One thing to remember about Owner-Furnished, Contractor-Installed projects is that the developer now handles logistics. 

Keeping track of materials, timelines, and work crews can be daunting. However, successful project management often comes down to answering several questions. 

How will the developer or owner coordinate deliveries? Companies need to know when materials will arrive on site and who will deliver them. 

Product delivery is a balancing act, and mistakes can create a slew of problems. Delivering materials too early to the worksite can create confusion and potentially lead to product damage as it sits. Of course, delivery delays or product shortages bring projects to a halt. When this happens, everything slows down, putting timelines and other slated projects at risk. 

Who will hold onto solar project warehousing stock? Developers often work on multiple utility or community solar projects concurrently. Those installations often use tens of thousands of feet of wire, hundreds of racks, panels, and other parts. 

Companies may operate using a “Just in Time” approach to save space and costs, but sometimes it isn’t possible. If EPCs choose to warehouse materials, they must avoid overstocking and paying for additional space. 

At the same time, companies should maintain adequate stock to address needs as they arise. 

Can the EPC or developer control the supply chain? More control, more responsibility. Included in that stress is the chore of evaluating and choosing manufacturing partners and vendors. 

Once the company finds suitable partners and vendors, the focus shifts to establishing transport, product tracking, and delivery methods. And if materials come in from overseas, shipping routes, tariffs, and other variables come into play. 

Beyond delivering components from Point A to B, companies must also contend with the risk of damaged goods, late arrivals, and other problems. When issues arise, the company is responsible for getting the job back on track as quickly as possible. 

Risk Meets Reward 

The United States’ clean energy boom has brought solar installations to the forefront. It has also changed how solar companies create, manage, and improve their bottom lines. 

If done correctly and conscientiously, solar companies and contractors can both benefit. But the key to making OFCI activities work for everyone involves building and maintaining strong relationships. Developers need to have faith and a good rapport with their vendors, manufacturers, and logistics teams. Meanwhile, contractors must find developers with strong industry records and work closely with them. 

When EPCs consolidate processes, they also take on additional risk. However, the moves could lead to shorter project timelines, streamlined operations, lower costs, and more long-term savings.

Stronger Bottom Lines: Reducing Utility-Scale Solar Installation Costs 

If we could sum up the solar industry in 2025, it might sound like the French electronic duo Daft Punk. 

“Work it harder, make it better, do it faster, makes us stronger.” 

As the solar industry adjusts to a rapidly changing political and economic environment, protecting the bottom line is crucial. Solar developers and EPCs are looking for every advantage possible to keep costs down, including: 

  • Performing installations faster 
  • Finding stronger, more reliable solar panels 
  • Investing in cost-effective racking systems 
  • Using pre-fabricated modules and factory-made PV wire 
  • Implementing automated systems to control labor expenses 


With the right combination of cost-cutting measures, utility-scale solar developers can reduce costs, maximize labor, and improve project longevity and reliability. 

Automation Enhancements 

No matter how you might personally feel about AI, robots might not be a bad thing, especially for an industry dealing with labor shortages. When used effectively, automation technology augments workers’ skills, making installations faster and, ultimately, less expensive. 

But how exactly do automated systems accomplish that goal? 

It all comes down to minimizing the impact of repetitive tasks for workers. Companies like Charge Robotics are taking the lead, creating fully autonomous bots like its Sunrise construction system. The robot quickly assembles and installs solar bays on-site while also performing quality control checks. 

For solar developers, the extra set of metal hands goes a long way. Robotic systems reduce jobsite risk and improve overall quality and speed with fewer workers. But Charge Robotics isn’t the only name in the game–it’s one of several start-ups planning to change the solar industry overnight. 

AES’s Maximo installs solar panels onto trackers using artificial intelligence (AI). The robotic system is technology agnostic and easily adapts to work with a variety of clamps, trackers, and panels. 

Beyond being an installation bot, Maximo takes on other incredibly important tasks on the project site. As it works, the system collects data, keeping solar developers informed about site progress and potential concerns. 

It also handles dangerous tasks formerly carried out by crew members. Instead of having a worker install panels onto trackers high above the ground, Maximo does it. Workers safely guide the robot from the ground, allowing it to work without putting crews at risk of falling. 

AES’s invention is already making waves, earning support from Amazon. The online retailer has used Maximo for several solar + storage sites that the company has invested in. 

The Need for Speed (and Safety) 

Regardless of the system, the goal is always the same: speed, safety, and simplicity. 

Robots move faster than people, can lift heavy panels by themselves, and place them with pinpoint precision. They also have a keen eye, powered by machine learning, to constantly perform quality control throughout the project. 

But, despite their skills and strength, robots and automated systems aren’t here to displace their human counterparts. If anything, they augment our strengths and help us do more with fewer resources. 

Robots don’t complain about performing repetitive tasks and can do those jobs faster than a crew of people. In the meantime, workers can focus on big-picture problems to keep projects moving smoothly and fix issues. Machines also alleviate hiring problems that solar developers face, especially in harsh desert environments where it’s tougher to attract quality talent. 

Piecing Together Projects 

Despite slightly higher upfront costs, factory-made components and modular systems can drastically reduce labor costs and installation times. 

The solar industry is facing incredible challenges, forcing EPCs and developers to find creative solutions to do more with less. For companies with tight deadlines, higher initial costs are worth potential long-term savings. 

Today’s solar projects are easy to assemble on site, coming together like giant building blocks. From start to finish, pre-built, factory-made parts simplify production and turbocharge development. 

Foundations 

Foundations are crucial to any solar project. These systems hold racking steady and protect installations from shifting and corrosion caused by severe weather and the environment. 

Depending on the site’s location, solar builders have a wide range of concrete ballast options. Manufacturers create the foundations off-site, then truck them in, saving crews precious time. 

But why should crews consider a factory-made concrete ballast when they can simply pour foundations? When workers pour concrete out in the field, they run the risk of weather, debris, and even the site itself causing issues. If the concrete doesn’t cure correctly, it won’t be as strong, reducing long-term reliability. 

By purchasing pre-made concrete ballasts, weather isn’t a factor since crews don’t need to wait for curing. The result is a plug-and-play building component ready for decades of operation. 

Racking and Frames 

Solar panel racking supports the panels themselves and, in some cases, tracks the sun as it moves through the sky. They attach directly to the foundation and serve as a skeleton holding everything together. 

To hasten construction projects, developers can order pre-drilled racking systems with the hardware already attached. Other times, the racks and frames may also include pre-installed DC wiring. With most of the work already done, crews only need to attach the panels and tighten the bolts. 

Wiring and Connectors 

If racking is the skeleton, then PV wire and connectors are the blood vessels and nerves. They transport solar energy collected by the panels and carry it to the combiner box as DC electricity. 

Years ago, workers would have to carry individual strings of PV wire down long aisles of panels to connect everything. Today, manufacturers like Sun-Pull offer customized PV wire bundles on single spools, cutting installation times and labor costs. 

Pre-bundled PV wire gives solar developers the option to do more with less. For example, what used to take a crew of workers a day to complete now only needs a couple of hours with 2-4 people. Sure, bundled wire costs more, but it makes up for the higher price with faster project speed and better resource allocation. 

Meanwhile, workers use connectors attached to the ends of PV wire to safely and tightly connect the wiring to the panels. Depending on the project and timeline, manufacturers like Sun-Pull can attach factory-made connectors to the PV wire. While it isn’t an exciting feature, it guarantees that one type of connector is used throughout the site. If crews accidentally use multiple connector types, the risk of poor or loose attachments spikes, potentially creating performance and fire risks. 

Pre-fabricated connectors also eliminate potential failure points in the field. Workers have varying levels of job experience, and installation quality varies from one worker to the next. If the connection isn’t tight or if an uncaught mishap occurs, it could lead to arcs, sparks, or system faults. 

Manufacturers quality control every product leaving the facility, giving solar EPCs peace of mind on the jobsite. This level of control in the process guarantees the connectors will work as intended for years to come. 

Wire Management 

From clips and clamps to ties and straps, utility-scale PV projects have no shortage of wire management options. 

At their core, management systems protect PV wires from potential dangers, including accidental contact, severe weather, and environmental hazards. Depending on the environment, budget, and application, project managers have a bevy of shapes, sizes, and materials available. This allows developers to choose what works best for them, from simple cable ties and S-clips to more complex conduit trays. 

DC Combiner Box 

Combiner boxes are as unique as the solar site itself. To that end, manufacturers can design and build boxes for every specific need. 

The process for that is straightforward but requires pre-planning. Customers must have exact specifications for what they need, which the manufacturer uses to build the box. This includes installing surge protectors, fuses, and terminated wire harnesses to safely collect and combine electricity. 

After strict quality testing, the manufacturer ships the combiner box directly to the jobsite for installation. 

Protecting the Bottom Line 

Finding cost savings on community- and utility-scale solar projects helps developers save money far beyond their current projects. 

Of course, it’s also safe to say that not every project will benefit from the same solutions. Every location has unique opportunities and challenges impacting available options. 

Modular systems and automated processes hold several advantages over traditional construction industry methods. Robots installing pre-made parts move much faster than a crew of workers, with the added benefit of checking their work along the way. This frees crew members to focus on other parts of the project that may need additional attention. 

Pre-made parts reduce the impact of weather during construction and make sites safer. In a factory setting, manufacturers control production in a stable, consistent environment. Once workers test the components, they can connect them like a huge set of building blocks. 

Higher Quality, Less Hassle 

In manufacturing facilities, quality is critical. 

Factories can QC and QA all components before they leave the factory, reducing the threat of poor installation. This is especially true for PV wire, connectors, and other sensitive equipment, where inexperience could hurt quality. 

More importantly, manufacturers are masters of high-level precision. They have the technology and resources to ensure everything fits, works, and performs as it should. By investing in prefabricated materials, crews only worry about installation. 

As a result, solar projects require fewer highly experienced workers to oversee everything, easing labor issues. 

Scaling Up 

When everything is modularized, it’s easy to scale up or down based on what parts you need. 

Standardization creates scalability, thanks to more accurate inventory tracking, maintenance procedures, and product acclimation for workers. As the team becomes more familiar with each piece of the puzzle and its processes, they move more confidently. The added speed means shorter timelines, more projects, and healthier bottom lines. 

Standard pieces and processes also affect cost structuring, as similar designs and situations may need similar inventories. Over time, familiarity leads to stronger forecasting and budgeting for future projects. 

Bottom Line Breakthroughs 

Solar projects aren’t cheap, but it’s possible to find cost savings and other bottom-line improvements. 

The industry has no shortage of innovative technologies hitting the market every year. For savvy solar developers, understanding the industry, building relationships, and staying on the cutting edge go a long way. 

For those builders, it means investing in automated solutions that reduce labor costs and improve safety. It also means reducing material costs through better planning and scalability without cutting corners. 

Solar development isn’t slowing down, even as the industry adjusts to rapid change. Those embracing the world around them will have an incredible leg up on the competition.

How Does Humidity Impact Solar Projects?

Summer is here, and that means three things: barbeques, beach vacations, and seemingly constant humidity. 

Humidity is everywhere, but location and environment play a role. For example, relative humidity in Florida, Texas, and Mississippi is higher than in Arizona, New Mexico, and Nevada. This is because the former states are located near large bodies of water, as opposed to arid deserts. 

Unfortunately, humidity is becoming a problem in the United States. According to a 2025 scientific study, humid heat waves have become stronger. As temperatures rise across the board, they lead to more water evaporation. As water evaporates, it increases humidity, which is bad for people, animals, and solar panels alike. 

Luckily, solar developers have several tools to prevent humidity and moisture from damaging their installations. Knowing how humidity works is the first step toward protecting sites from damage and lost output. 

What is Humidity? 

Humidity is an environmental condition measured by the amount of water vapor in the air at any given time. This moisture typically comes from water evaporating from bodies of water, but can also come from plants, soil, and rain. 

There are two types of humidity (absolute and relative), but relative is the one most people are familiar with. Relative humidity determines the percentage of water vapor in the air compared to its potential maximum. As temperatures rise, relative humidity decreases. As temperatures fall, the air holds less water vapor, creating dew and fog. 

Easy access to water sources results in higher humidity levels for those living in those regions. This is why Florida and Louisiana have higher levels than drier states like Arizona and New Mexico. High heat keeps relative humidity low since the air can hold more water vapor. 

Though humidity is a constant presence, it becomes more of a threat during the summer when temperatures rise. Hot air holds more moisture than cold air, which is why you don’t hear about humidity during the winter – the air is drier. 

How Does Humidity Impact Solar Sites? 

It might not sound like it, but as the air outside gets moister, the resulting humidity can slowly cripple a solar farm. 

And like many weather-based issues, it impacts every component from the ground up. 

Solar Panels 

When humidity is a concern, so is condensation. As temperatures retreat from their daytime highs, water vapor in the air forms droplets. Those droplets fall onto solar panels, mixing with dust and other gunk already there. 

As the water evaporates again, the dust left behind sticks to the panels and becomes hard to remove. If enough dust becomes stuck, panels may struggle to collect sunlight, reducing performance. The attached dust is also dried on, meaning crews must do more intense cleaning. 

Beyond simply making panels dirty, moisture can also become trapped inside panels. If that happens, water can create a film that could increase panel operating temperatures and hurt power generation. 

Reduced Performance 

Reduced performance comes in many forms, including Potential-Induced Degradation (PID). 

PID occurs when there’s a combination of hot temperatures and high humidity. When long strings of panels are tied together, those on the ends of the row carry the largest electrical pressure difference. These voltage differences between the solar cells and their frames may create small leakage currents. 

So, how exactly does humidity impact performance? When small leaks occur, rain and humidity increase system conductivity, leading to greater losses. It can also add stress to panels, as humidity fluctuations can leave water droplets on the panels’ faces. 

But sometimes performance issues stem from something simpler. Excess moisture can cause a wide range of problems when it gets inside a panel. For example, errant water can cause delamination inside the panel, along with mold growth in or on its face. In both cases, the panel can’t efficiently collect sunlight, limiting output. 

Wire and Connectors 

If moisture gets into a faulty, damaged, or improperly installed connector, it can immediately affect the system. 

Wet connectors are a breeding ground for short circuits and faults, which can drastically reduce output. However, water can also enter through cracks in damaged wire insulation. 

When moisture penetrates a PV wire’s insulation, it can damage the wiring. If installation or maintenance crews don’t spot the damage, it could lead to arcs, shorts, and faults. Worse yet, it could spark a fire, damaging nearby panels and racking. 

Racking 

Racking may not be exciting, but it’s critical to a solar project’s overall power generation. 

High humidity introduces moisture to the equation, which can ravage unprotected metal racking systems. Solar developers should either invest in corrosion-resistant materials or use coatings to make the racks resistant to corrosion. 

Without proper protection, the systems are more likely to rust and show wear while leaving the door open for mold growth. If mold or rust forms around tracking system components, it could prevent panels from moving with the sun. 

Preventing Damage from Humidity 

While it’s impossible to stop humidity from occurring, it’s possible to protect solar sites from damage. All it takes is a little preparation and patience. 

  • Invest in hydrophobic coatings. These specialized coatings repel water, preventing it from accumulating or entering sensitive areas.  
  • Keep up with cleaning. Regular maintenance cleaning removes dried bits of dust and other crud from solar panels. It also gives moisture fewer opportunities to create mud on the panels, reducing performance. 
  • Don’t skimp on seals. Seals prevent outside debris and moisture from entering solar panels and causing damage to sensitive components. 
  • Invest in high-quality PV wire products. Work closely with manufacturers that install connectors in-house and perform quality control testing. Unlike field-made connectors, which could be mistake-prone, employees test every connector to ensure a tight seal. This prevents moisture from entering through openings and shorting wires. 
  • Use the right wire for the job. Utility-scale solar projects are massive endeavors and long-term installations, so buy high-quality wire when possible. Invest in UL 4703-certified PV wire, as other types may offer less protection. PV wire can withstand harsh outdoor environments and is moisture, weather, abrasion, and UV resistant. 
  • Explore your conductor options. Copper is the most common PV wire conductor, offering good conductivity across many applications. Aluminum is lighter than copper and more affordable but needs larger gauges to match copper’s conductivity and may oxidize over time. Tinned copper offers better corrosion protection than copper alone, but developers will pay extra for additional peace of mind. 

Risk, Rewards, and Resilience 

Humidity is a necessary and important component of our natural environment. However, solar technology is rapidly improving to make solar projects more resilient against its effects. 

As products and methods improve, solar sites enjoy increased clean energy production, higher levels of safety, and longer project lifespans. Meanwhile, consumers benefit from low-cost renewable energy, utilities and operators produce more power, and sites generate higher ROIs. 

Solar sites require an incredible amount of planning, and no one knows everything. When questions pop up, know who to reach out to for advice and guidance. Oftentimes, this means reaching out to a trusted manufacturer or distribution partner. Their insight can simplify the installation process and make it easier to maintain products over their usable lifespan. 

This ultimately leads to better, more efficient projects that benefit everyone.

Going Domestic: Why Builders Want American-Made PV Wire

If you’ve been paying attention, you’ve likely seen one news story after another hyping up the U.S. solar industry. 

We’ve seen years of growth as clean energies like wind and solar take over new generating capacity. In 2024, for example, solar comprised two-thirds (66%) of U.S. electricity-generating capacity additions. Overall, the solar industry installed about 50 GWdc of capacity last year, hitting a new one-year record. 

Tailwinds and Headaches 

So, what’s driving companies, utilities, and communities to dive into solar energy? As it turns out, several factors combined to get us here. 

The Inflation Reduction Act (IRA) has had a couple of years to come into form. Incentives made through the program extended and broadened solar tax credits, making large-scale solar projects a better investment. 

The IRA also created measures to develop sustainable domestic supply chains for solar panels, racking, and wire. Previously, solar companies imported foreign solar components, dealing with everything from long delays to questionable quality. The costs were lower, but the industry struggled. 

Today, domestic manufacturing is taking a monumental step forward. Recently, the SEIA announced the U.S. had reached a critical manufacturing milestone. Domestic solar module production capacity hit 50 GW, large enough to meet current U.S. demand. Backed by Section 45X and Section 48C tax credits, incentives bolster an already booming industry. 

Despite some potential governmental headwinds, industry experts are bullish on solar energy’s future. 

Does Buying Domestic Matter? 

The U.S. is encouraging developers to use American-made goods, including PV wire. But does domestically produced wire warrant the higher cost? 

In many cases, the short answer to that question is yes. Although all PV wires may look similar, subtle details impact quality, lifespan, and performance. We must also consider project scopes, including timelines, budgets, locations, and job requirements. 

Depending on the situation, American-made PV wire could be a cost-saver. 

Quality and Build 

Solar wire made in the United States meets or exceeds Underwriter Laboratories, National Electrical Code (NEC), and ASTM standards, including: 

UL 4703 – This UL standard is specific to PV wire. UL 4703 tests a wire’s ability to handle sunlight exposure, high temperatures, weather, and other threats. 

UL 1581 – Also known as the VW-1 test, UL 1581 is a vertical flammability test. Essentially, UL 1581 determines how much a flame propagates (spreads) along a wire section. 

ASTM B-1, B-3, B-8, and B-33 – These wire configuration standards correspond to specific wire types. In order, they are hard-drawn copper (B-1), soft-drawn copper (B-3), concentric lay twisted strands (B-8), and tinned copper (B-33). 

American-made PV wire undergoes heavy scrutiny, resulting in high transparency. Additionally, strict standards add a layer of safety to every product, ensuring the wire does what it should. This may not be the case with products shipped from overseas, as other countries’ standards may be less stringent. 

NEC Section 691 – This portion of the NEC corresponds to several aspects of utility-scale solar sites with generating capacity over 5 MW. It covers factors like operating voltages, disconnects, fire mitigation, engineering, and other critical safety measures. 

Supply Chains and Lead Times 

Timelines matter – whether it’s a utility-scale solar array or a small community solar project. 

One massive advantage American-made products have is their shorter supply chains. Because the manufacturing and shipping are both within the U.S., production lead times tend to be much shorter. Shipping times are also shorter because products don’t have to travel by boat to the United States. 

On top of the shorter shipping and lead times, buying from domestic manufacturers helps developers avoid tariffs and duties. Importers often pay tariffs on materials from other countries, adding costs to the products they buy. Duties, on the other hand, are taxes paid on imported goods. 

Domestic production is also handy if problems arise. When customers find defects in their solar wire, they can return it to the manufacturer easily. Because the route is much shorter, the amount of time it takes to switch the wire is faster. Cutting a weeks-long wait down to only a few days is crucial when developers are racing to meet looming deadlines. 

Weighing Costs with Lead Times 

If deadlines aren’t an issue and the company has time to wait, sometimes shipping products from overseas could be an option. 

Buyers take on risks with the purchase, including the threat of geopolitical issues coming into play and tariffs. However, despite longer customer lead times and riskier supply chains, developers could save money on large-scale projects by using imported wire. 

Budgetary Constraints 

Developers endlessly search for ways to deliver the best results with the most savings possible. 

To that end, U.S. materials offer solid production, quality, and price. American-made materials follow a strict production process to ensure higher durability, longer lifespans, and better manufacturing traceability. The result is a product that often lives up to the price point. 

But every dollar counts, especially when you’re dealing with solar systems with hundreds of aisles of panels. Wire is a pretty small piece of the overall budgetary pie, but as projects grow larger, so does the cost of wire. 

Project Requirements 

Sometimes, it isn’t about price, performance, or any other factor – the project just requires domestic PV wire. 

Over the years, solar projects have become more specific, especially as the federal government attempts to bolster domestic manufacturing. As a result, more solar projects are pushing to meet domestic content requirements like BABA. The products called for are then “spec’d in,” requiring developers to source those materials for the project. 

BABA, or the “Build America, Buy America” program, ties funding and tax credits to solar projects. For example, ITCs and PTCs contain language about using American-made materials in the site’s development. We wrote a blog about these rules, which you can find here. 

State and local domestic product incentives could also be in play, depending on the project’s location. 

The Case for Imported Wire 

So, with so much focus on domestic production, is there a place for imported PV wire? 

Imported wire can do the job, but it’s important to ALWAYS work with a trusted, vetted international partner. Different countries have different standards, so it’s on the developer to verify who they buy from is reputable. 

Price – Larger projects call for more wire – often to the tune of hundreds of thousands of feet. Imported wire is generally more cost-effective, reducing overall project costs. 

Access to In-Stock or Unique Products – On occasion, solar projects may call for uncommon wire, which could lead to longer lead times. Overseas vendors may have specialized products in stock, keeping projects moving on time. 

Once again, DO YOUR RESEARCH before purchasing thousands of feet of wire from an international vendor. A trusted partner can meet safety standards and be transparent about their processes, ensuring high quality. 

Small Line Item, Huge Impact 

Wire is a crucial component of any utility- or community-scale solar installation. Without it, electricity doesn’t move from the panels to the electrical grid. 

Buying American isn’t solely about supporting the Red, White, and Blue. Builders get faster shipping, fewer added shipping costs, top-quality products, and peace of mind. 

Some overseas products may have similar quality, but EPCs must do their due diligence. This means building trust and verifying those manufacturers produce high-quality products. 

At the end of the day, not all wire is the same. No matter where the wire comes from, only work with trustworthy manufacturers that meet the highest standards. The result will be better installations, safer projects, and long-lasting performance for decades. 

What is a Virtual Power Plant?

One of the worst feelings is the dread one feels when the power goes out. 

Homes and businesses typically rely on electricity from local power generation plants. For the most part, consumers can reliably power our daily routines and keep life moving smoothly. But it also comes with a massive disadvantage. 

When the power goes out, electricity doesn’t go to end users, leaving them in the dark. While crews work feverishly to restore power, home and business owners worry about spoiled food, lost revenue, and boredom. 

However, emerging technology supported by electrification is changing how power disruptions impact our lives. These virtual power plants (VPPs) can keep the lights on using power created by our neighbors. 

Though they sound complicated, VPPs are the next step toward developing a more dynamic electrical grid. 

What is a VPP? 

By definition, a virtual power plant is a network of decentralized production and storage units combining to send power to the grid. 

But what does that mean in human terms? 

“Decentralized production and storage units” are basically all the pieces making up the VPP. These distributed energy sources (DERs) include everything from solar panels and batteries to electric vehicles (EVs) and smart products. If it can create, store, or control electricity, it can be part of a VPP. They also don’t need to originate from a singular location – VPPs can cover small or large areas. 

The best part is anyone can join a virtual power plant. Potential VPPs can include residential, commercial, industrial, or community-scale systems, though rooftop solar is the most common DER. 

VPP technology has existed for several decades but has taken off dramatically in the last ten years. The Department of Energy estimates that 30-60 GW of VPP grid capacity exists today. 

How Does a VPP Work? 

Let’s pretend a neighborhood has several rooftop solar systems, EVs, and smart homes. If these systems are part of a virtual power plant, utilities can draw from them during an emergency to power other homes and businesses. 

And just like that, a storm rolls through, knocking out a critical power line supplying electricity to several neighborhoods. When power outages or peak demand occurs, the utility activates the VPP. The utility can then remotely “talk” to connected DERs to turn thermostats down, reduce electricity use, and discharge EVs. 

Power flows from connected devices to the grid, sending electricity to other impacted neighborhoods. At the same time, energy loads drop, ensuring enough power is available. 

NOTE: This ONLY happens if the customer has opted in – VPPs require remote control from outside operators, like utilities. 

It might not seem like much, but localizing the grid to specific areas makes it more stable. Utilities can worry less about burning more fuel to send electricity across transmission and distribution lines and focus more on repairs. For end users, VPPs keep the lights on during peak times and emergencies using power supplied by others. 

VPPs Are NOT Smart Grids 

If you know the phrase, “A square is a rectangle, but a rectangle is not a square,” the VPP/smart grid relationship makes sense. 

Think of it like individual states in the nation. For example, Vermont is only one part of the larger United States. 

A VPP is a type of smart grid, but it’s only one piece of the larger smart grid infrastructure. Unlike a virtual power plant, smart grids cover the entire electrical grid, utilizing new technology to improve reliability and resiliency. 

Smart grids create large-scale two-way networks between microoperators or utilities and end users. Utilities can optimize electricity output and flow through the network, better incorporate renewable energy, and perform real-time monitoring. 

The result is a more dynamic electrical grid that reduces power loss, improves reliability, and saves money. 

Why They’re Gaining Steam 

Storms are getting worse, making power outages more severe. 

In 2023 alone, the U.S. experienced 28 “Billion Dollar” weather events, totaling an eye-popping $95 billion in damages. Weather is also the cause of more than 75% of power outages in the U.S., making it the grid’s number one threat. 

At the same time, the push for groundbreaking technology has never been stronger. More things rely on electricity than ever, requiring vast amounts of electricity. But with smarter electronics and power generation systems, we also have more opportunities to share power. 

Reducing Risk, One Neighborhood at a Time 

Our nation’s electrical grid is showing its age, as many pieces of infrastructure are well over 25 years old. 

Because of its age, the grid is more susceptible to damage caused by storms, physical threats, and cyberattacks. Unfortunately, when systems go down, people and communities are at risk. 

Communities once relied on central power plants to deliver electricity to neighborhoods, businesses, and other locations. But during outages, those people sat in the dark until power was restored. 

Under a VPP, during an outage or demand spike, the utility can remotely call on DERs to discharge power to the grid. Those opting into the program become power plants, drawing on stored energy to electrify those around them. 

Long-Term Savings 

Beyond grid security, VPPs reduce the number and size of electrical transmission and distribution peaks. 

What does that mean for the average person? When peaks occur, it stresses the grid since it has to support more electricity. The strain could lead to problems ranging from blown transformers and substation faults to overheated wires. Fewer peaks mean less threat of overloading the system. 

Peaks occur when there’s more demand than usual. To support the higher demand, peaking power plants generate electricity to meet the need. The problem is these power plants are expensive to run. Someone has to pay those costs, and it’s most likely the end user. 

VPPs take the pressure off power plants to meet peak demand by discharging electricity from DERs. As a result, the utility spends less money on fuel sources and limits energy loss along power lines. Meanwhile, customers receive steady power while VPP participants earn cash or credits for their electricity. 

Best yet, expanding VPP services goes beyond short-term savings. According to the Department of Energy, if the U.S. deploys 80-160 GW of VPPs by 2030, it could save $10 billion in grid costs. 

Taking Advantage of Incentives 

Like other renewable energy initiatives, there are programs and incentives available for VPPs. 

Depending on location, rebates and programs make commercial, industrial, and community-scale solar possible. For example, Maryland’s Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act requires investor-owned utilities to develop programs rewarding DERs and establish incentives.  

Utilities and community solar energy operators also have programs to finance and promote VPPs. The Department of Energy has funded various clean energy installations through Title 17, which provides loans for innovative projects. 

In other cases, state and local incentives for solar and other renewable projects could be available. And don’t forget to research what incentives stack, as organizations and programs cover different initiatives. 

VPPs for Consumers 

Consumers participating in virtual power plants and installing DERs add clean energy to the grid. As more clean energy systems come online, we rely less on large-scale power plants and fossil fuels. Over time, this may reduce electricity costs. 

Additionally, VPPs ensure homes and businesses have power during an outage, reducing other losses. From allowing small businesses to stay open to preventing food spoilage, small power providers keep everything running smoothly. 

As for the bottom line, consumers sending power to the larger grid earn money or credits on their energy bills. Those credits can offset upfront costs related to installing a solar system or battery or buying an EV. 

Downsides and Cautions 

For everything virtual power plants do well, there are some drawbacks to how the system operates. 

Despite owning the power they produce, consumers don’t always have control. When signing up for a VPP, consumers give operators the right to draw energy from DERs when necessary. If that happens, EVs, batteries, solar panels, and smart products connected to the network begin discharging and conserving power. 

Operators have also launched programs to pre-enroll consumers, though they can opt out later. Though it’s easy for utilities to enlist homes, businesses, and others into the program, consumers should be well informed. Participants must understand the program’s details, what to expect, and how utilities will compensate them. 

Not Enough Participants 

Experts believe virtual power plants could help address future energy demands, especially as older plants retire. 

Coal use has declined for years, with 4 GW of coal-fire capacity retiring in 2024. Before last year, retirements averaged about 9.8 GW each year for the previous decade. Worse yet, as retirement and deployment schedules fluctuate, we’re looking at a 200 GW gap in peak demand needs. 

VPPs could fill the potential gap, but the country must act fast. We need about 80-160 GW of capacity by 2030 to meet rising U.S. demand. The current total is only about 30 GW, far from the low-end goal. 

Not a Replacement for Grid Upgrades 

Electricity demand is rising rapidly, thanks to more electronics, a growing number of data centers, and a manufacturing renaissance. 

The result is a fevered effort to find new ways to generate power for the grid. Unfortunately, the current grid isn’t entirely ready for a wave of innovation. Instead, the design supports older power production methods powered by fossil fuels. 

The grid currently can’t reach its full potential because it desperately needs upgrades. Solar projects across the U.S. face massive delays because of red tape and interconnection problems. Other infrastructure has reached its usable lifespan, so we should replace and upgrade it. 

Everyone Plays a Part in Clean Energy 

Utilities, solar companies, businesses, government, and consumers all stand to benefit from VPPs. 

With planning and strong execution, we can cut costs throughout the supply chain. On top of the financial costs, VPPs help improve grid resiliency, leading to fewer power outages. Adding diverse electricity options also gives utilities more access to clean energy, reducing reliance on fossil fuels. 

The future is leaning toward cleaner power, but we still have lots to do. It means finding answers for rising demand, aging infrastructure, interconnections, and industry support. But as we check each box, powering our future becomes more possible.