5 Ways to Reduce Construction Costs for Your Solar Project

Procuring equipment that is reliable and well suited for the project’s climate and terrain will help ensure that your construction goals and targets are met. Having reliable equipment may seem obvious but it’s not a given from every supplier. You will thank yourself later for ensuring your equipment functions at a high performance for the duration of the construction process and will help you avoid any unanticipated challenges as a result of malfunctions or breakdowns.

Run tests. Verify your equipment’s performance with the necessary tests and take action immediately when you see the potential to fail. Here’s where knowing your site conditions will help you determine the right performance criteria. For example, take into consideration harsh weather conditions and their impact on your equipment. A lot of equipment fall short of meeting basic demands such as failing to withstand the humidity freeze test and the damp heat test.¹ Work with your manufacturers and vendors to clarify performance criteria and other project specifications to ensure your equipment is ready for the task before you even start construction.

Simplifying your solar installation process during construction means being proactive in knowing the constraints of your site. Conduct a thorough geotechnical investigation and take the time to properly select a solar racking and mounting system that’s suitable for your site conditions. Before you select a vendor for your solar racking, consider the variances and tolerances of the racking system and how having some room to adjust without drilling holes will save time on installation. If you have a flat site with uniform conditions, you might be able to get away without having to adjust racking in the moment. Most sites do, however, have some variation in terrain, and so having a high degree of adjustability can save a great deal of time during construction.

Being proactive in planning and sourcing your solar construction helps to account for future hiccoughs along the project development timeline. Accounting for supply-chain issues is a new given in the industry and so is getting your materials to site when you need them. Consider sourcing early to have more flexibility with the cost of steel. Sourcing early also gives you a buffer. If your site is quiet because of late deliveries, you’ll be facing increased labor costs which brings to the third point.

Reducing complexity also includes reducing complexity within scheduling through planning the process of installing solar on-site. How many teams will you be deploying and could delays in one team cause downtown in the other team? Should you be procuring more equipment for the site? How will you deal with mud on-site and other site issues that can cause issues with equipment and labor. Labor costs can add up quickly and any way you can reduce time spent on building ultimately will save your project money. Complex tasks take time and time is money!

However, in an effort to reduce complexity, do not risk cutting corners. One tip is to know when to spend and when to save. Sometimes a good bargain might stand out to you, but you may end up spending more to redo work. Read through reviews of equipment and materials. Opt for quality that will perform better and last longer.

Make sure you incorporate estimations during early stages of project planning and keep these numbers updated on a regular interval. These numbers will of course be approximations, but they will definitely help you make more informed decisions. Gather all the numbers you can on equipment costs, building fees, land leases, staff wages, maintenance fees, safety system fees, etc. Many solar developers had to contend with rising steel prices and supply-chain issues that drove the cost of solar construction up over the past two years. Once you have a better understanding of the numbers, you can tweak and make changes to your plans to align with your budget. Consider your costs at every step.

Understand the budget you’re working with and account for surprise costs that arise during construction. Construction contingency funds should account for roughly 5 to 10% of your budget. More often than not during the building process, there are many unforeseen issues that can put your budget at risk. Risk comes from potential environmental or community issues such as: accidents, unpredictable weather changes, regulatory risks, vendors not having enough stock, rising shipping costs, other unanticipated costs or price changes, etc. Mitigate and manage risk to ensure that the least number of surprises occur during your construction process. Identify potential risks, evaluate their impact and probability, and prepare best courses of action to respond.

Finally, assembling the right team is key. Whether you are selecting a team of developers, EPC’s, and or vendors, it is crucial that you’re bringing the right people on board. The development process for constructing a solar project is fairly lengthy and requires many hands on deck. From the moment the land lease is signed, to geotechnical investigations and site plan design, to passing through all legal hurdles, each step requires team members that are knowledgeable and experts in their field. Having the right team ensures that time is being spent in an efficient and proficient manner. Any sort of setbacks as a result of inefficiency or inexperience can very well be avoided with a team that is adept and well-trusted.

At Polar Racking, we are naturally involved in the later stages of the solar project. Once the project is given the green light, our team begins working on customizing a design to best suit the site conditions. By analyzing the size, shape, and type of land, our team is able to engineer a solar mounting system that can work in any environment.