Could new EPCs enter renewables?

New types of EPCs could also enter renewables. A few large, diversified EPCs that serve other industries have begun expanding into solar. And as owners look for available talent pools to get projects in the ground, local or regional contractors could also be reskilled to install solar projects.

Are EPC partnerships a winning strategy in the solar industry?

Partnerships have been a winning strategy in the solar industry for many years. Today, leading developers have locked in capacity with two or three core EPC partners on average, bringing benefits to both sides (Exhibit 4).

How do solar EPCs compete with higher-margin industries?

To expand capacity, solar EPCs must compete with higher-margin industries for engineering and construction talent. What’s more, solar projects are often installed in rural areas where the overall labor pool is smaller to begin with, putting even more pressure on solar EPCs to ramp up their workforce development. Limited access to land and permits.

What is the difference between an EPC and a utility?

The utility could procure equipment in-house—such as panels, inverters, trackers, and racking—to manage long lead times and leverage economies of scale across multiple projects while the EPC focuses on building the labor and technical skills to install solar.

Why are solar panel pricing trends more uncertain?

Going forward, pricing trends could be more uncertain because of geopolitical dynamics, commodity price volatility, and the challenges of rebalancing supply and demand amid the diversification of solar panel manufacturing. Interconnection costs and timelines.

Why should EPCs adopt a new technology?

EPCs that adopt such technologies have the potential to capture higher margins from efficiency gains, and owners who create opportunities to pilot new equipment and materials on their projects can share in those benefits.