In the last 4 years, the solar power industry has seen major change. The growth rate is exponential, at 25% annually, according to the Solar Energy Industries Association.
The biggest change: solar power isn’t a consumer market anymore, nor is its potential limited in use case.
The construction industry is no stranger to using solar power. New green construction for buyers is an attractive benefit – but there’s so much more the industry stands to gain.
If general contractors and developers see solar as only the consumer’s prerogative – they’re missing out on yielding twice the reward.
Misconceptions about the flexibility and ruggedness of solar panels has led many to think that solar isn’t durable enough for the jobsite, especially during bad weather. This is one of the most common myths behind solar (along with others we debunked here).
The truth is that solar is an investment that the construction industry should jump into feet first – and by 2027.
Our Current Sweet Spot and Why 2027 is One to Watch
Despite a global pandemic and critical disruptions to the global supply chain; it’s clear that solar power is a tool industries need to start taking advantage of. The construction industry has the opportunity to hit the “sweet spot” in terms of better pricing, steady demand, and tax credits. This is because of the classic supply and demand flow.
Here’s what’s happened to get us where we are:
In 2021, photovoltaic panel prices rose dramatically as demand had outpaced development. By Q4 of 2021, the solar market hit a historically high price point that steadily dropped off in 2022. By Q3 of 2022, the U.S. Government signed into law the Inflation Reduction Act, which worked to strengthen domestic manufacturing capacity for solar.
By 2023, the solar flood gates were open. With the significant financial incentives in tax credits, solar solution installations hit new peaks.
In 2023, for the first time in 80 years, solar power generated the most new electric capacity, ahead of natural gas and wind. This made solar one of the most competitive energy options, driving down prices across the market.
Mass-production of solar materials in 2022 to recuperate from 2021, and new manufacturers opening as a result, generated certainty in the supply chain. Buyers and suppliers are now able to fulfill more orders at a better price and pace.
But that won’t last forever.
Current forecasts show that growth will slow down from now through 2027. As growth slows, it’s likely that so too will the benefits of this current influx in suppliers. Once adoption/installations has hit a peak, growth may slow even further, and incentive to reduce prices lessens as the market tightens. As the market slows down in growth, turning to leasing options may be a better investment option until the tides shift again. Leasing solar panels offers the opportunity to access power, without having to put in a significant upfront investment.
Solar Solutions: Start Small to See Bigger Returns
Now’s the time to take advantage of the solar market – although that doesn’t mean dramatically increasing spending to do it.
In this “sweet spot of solar,” investing in solar-compatible solutions can be easier than replacing entire generators for heavy equipment. Understanding where teams have the most to gain can help dictate which solar products to look into.
Construction sites can use solar to fuel site security, documentation, weather tracking and labor verification. By implementing solar power cameras for jobsites, teams can take advantage of the long-term benefits of solar through the short-term reuse and relocation of solar powered security cameras.
With mobile solar trailers, G.C.’s and developers get a two-sided benefit for every single jobsite:
- Reliable Power
- Reusable Power
Solar panels last for decades, and when used to fuel multiple solutions – from security to productivity management on site – the return on solar is one of unfathomable power and gain.
Taking everything into consideration and it’s easy to see why now is the time to get ahead of the curve.
Learn more about investing in solar through our free resource guide on green monitoring on the jobsite.
