Rooftop solar is making significant inroads into residential communities as well as many commercial facilities. It’s as simple as exploiting the rooftop space that is out of sight, yet smack in the middle of ultraviolet rays of light that may penetrate a photovoltaic solar panel and generate electric power, from an unlimited source (the sun), and help reduce energy received from the applicable grid.
From casinos to retail and manufacturing facilities, rooftop solar is becoming a common attribute of modern structures as owners seek more and better renewable energy through the self-sufficiency of solar. They’re getting off the grid. And many others are embracing this sustainable energy source.
The U.S. Department of Defense is one of many property owners widely adopting solar. It had set a goal of using renewable energy sources to generate 25% of the energy consumption in military installations. Balfour Beatty Communities, a kin subsidiary to Balfour Beatty Construction, owns and operates military housing communities and has been instrumental in driving toward this goal with more than 32W of solar installed across numerous military housing units.
According to researcher Wood McKenzie, in their “U.S. Solar Market Insight” (June 2020), the first quarter of 2020 saw a significant installation of solar panels, only to be thwarted, perhaps only temporarily, by COVID-19. According to the report, the U.S. solar market installed 3.62 gigawatts-direct current (GWdc) of solar photovoltaic (PV) capacity, a 42% increase year-over-year and the largest first quarter ever (tied with the fourth quarter installs of 2019). Clearly, solar installations are on the rise.
“To date, we have completed about 30 total solar panel projects, and this number is rapidly growing,” says Chuck Goodrich, president and CEO of Gaylor Electric, based in Noblesville, Indiana. “In the last year, we have even more ground-mounted solar array projects. In some of the areas where we work, the buildings are not designed for the additional weight of a solar roofing system, so it’s good to have options.
Goodrich says that before the pandemic, they were seeing a lot of requests for schools, utility companies, technology and public entities seeking to add solar capabilities to their buildouts. Universities top the list as they are adding solar to align with sustainability and customer care programs. He says that for solar systems for universities and educational institutions, the efficiency improvements are designed for each school, and complement other sustainable installations, which include new LED lighting, optimized hot water systems, smart thermostats, chiller and boiler replacements, and other renovations to reduce heating, cooling, gas, water and electricity costs.
Ready to Meet Market Demand
In general, the cost of solar panels has declined, though tariffs on less expensive panels from China may dampen a decreasing price of panels. But the efficiencies of those installing solar projects is improving as they establish more relationships with their own vendor and supplier networks and find more value engineering initiatives to expedite installs and reduce overall costs.
“Understanding this source of energy becomes easier over time as we continue to bid and price solar panel projects,” Goodrich says. “The technology is always changing, and we are doing a lot more fabrication of our solar work. To keep that momentum going, we are always looking for new ways to increase production. We accomplish this by internal engineering and fabrication. Gaylor Electric houses its very own fabrication and design-assist program that continues to maximize productivity by allocating manpower to necessary onsite tasks. As a result, we can control costs by eliminating rework and removing excess onsite manpower.”
Goodrich adds that with more experience and opportunity comes more knowledge and growth, which bolsters his own green energy team of highly skilled electricians, engineers and project managers that thoroughly understand the unique power requirements associated with renewable resources. The company’s internal team works in great synergy with external teams as well.
“Our vendor partners and support contractors such as excavators, independent testing agencies and utilities have grown right alongside us in their ability and knowledge of systems for procurement,” Goodrich says. “They are more accustomed with the work. As we grow our portfolio options, our vendors and support contractors grow as well.”
Many local factors affect solar projects. Some states have separate subsidies for solar projects and may receive funding from sources within the government.
“The solar industry is regional, which means each location in the nation has its own nuances that affect the industry accordingly,” says Pablo Diaz, CEO of Direct Solar of America, a Phoenix-based solar energy brokerage. “As an example, in Illinois you are currently not allowed to market a sale of a solar system due to the pandemic; however, you can install a solar system. In Florida, the state has opened its economy and infrastructure more to the marketplace than Illinois, so sales and installations are equally flowing freely. In our industry, globalism is a reality we contend with daily, thus if U.S. tariffs on Chinese panels hinder procurement, then the ingenuity that capitalism creates drives us to source our materials from Vietnam, Turkey, South Korea, Canada, etc. Solar is now a global affair that will only continue to expand.”
Diaz emphasizes that solar need not be avoided due to funding because there are many funding structures to support it, and many that most are not aware of. He says that private or public institutions can stand to benefit from sophisticated funding structures.
“As an example, we just completed an RFQ for the Memphis School District for more than $40 million in projects,” Diaz explains. “We were able to structure the capital so the school district would literally spend zero dollars in executing the 40-school solar project portfolio. Conversely, we have a sales project pipeline for commercial entities that is valued at approximately $57 million. Each one of these projects is at some level of development prior to contract execution. Analyzing the marketplace, all types of organizations can benefit from solar and the many finance solutions available to them. We are seeing movement on all fronts.”
A Strong Driver for the Future
For now, solar seems to be riding high, with a dip in the upward curve due to the pandemic. However, it’s expected that the momentum will not only continue, but also rely heavily on the expertise of construction firms and the end-to-end supply chain associated with solar projects.
“Solar power has proven to be a strong driver of our economic development,” says Goodrich with regard to Gaylor Electric. “The shift toward clean, reliable, affordable electricity in the United States is mostly noticeable in the rapid production of solar panels mounted on the roofs of businesses and even homes.”
