The fastest developing segment of the US solar market is the segment with the largest projects called utility scale solar. Up to now the biggest utility scale solar projects worldwide have been built in Europe where developers have cherished profitable feed in tariffs along with a comparatively inexpensive labor. However the utility scale solar farm projects in the USA are beginning to find momentum.
Currently solar energy farm projects within the USA do not benefit from the advantages European projects enjoy. Consequently US utility scale solar projects have small profit margins and labor is at a premium. Fortunately quite a few states are actively examining feed in tariff laws and once approved will encourage a new focus on utility scale solar farm projects.
Module and component prices have rapidly decreased enabling increasingly favorable project economics and spiking demand for utility scale solar energy farm projects. This has shifted project cost cutting focus away from components to overall project efficiency.
Planning a cost effective and bankable utility scale solar farm project requires an understanding of all cost elements, component and execution alike, and the way adjustment a single element impacts all its dependents.
Involving the EPC as soon as possible in the design and engineering stage will result in fewer field changes, fewer change orders as well as a more accurate construction timetable and budget. EPCs lend many years of installation experience that can shave seconds and minutes off of project tasks. With product volumes and project sizes of utility scale solar energy farm increasing significantly, just a few seconds and minutes add up to significant time and cap ex savings that can make or break a project.
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When the project is close to obtaining a power purchase agreement it is offered to investment groups who are positioned to invest but not operate the solar farm project. These groups come in and do the heavy lifting financially by providing the construction funds etc.