As the U.S. accelerates its transition to clean energy, Engineering, Procurement and Construction (EPC) companies must recognize — and navigate — dramatic industry shifts that can impact their solar construction business.

RenewableWorks, a TrueBlue Company that partners with EPCs and renewable energy contractors to support utility, commercial and community solar construction projects, identified these five trends for industry leaders to focus on for the remainder of 2024 and into 2025.

TREND 1

Policy support and capital influx

The renewable energy industry is riding a powerful wave of regulatory support and unprecedented investment from the U.S. government. The Inflation Reduction Act (IRA), signed into law in 2022 with a goal of substantially lowering the nation’s carbon emissions by 2030, allocates nearly $400 billion in federal funding for clean energy — the country’s largest investment in clean energy and climate action to date.

As a result, solar companies in VA and across the country now must also align their strategic goals with government policies to maximize growth and secure additional funding and support. While 2023 was largely a period of planning, 2024 is a time of implementation. The Energy Information Administration forecasts a staggering 42 GW of new U.S. renewable capacity coming online in 2024 alone — a 17% year-over-year surge.

While there are many complex components to the IRA, one of the essential landscapes to understand is labor. Companies in the renewable energy space must not only understand but comply with prevailing wage and apprenticeship requirements set forth in the to qualify for the enhanced Investment Tax Credit (ITC).

TREND 2

Utility-scale and community solar expansion

The expansion of both community solar and utility-scale solar represents a crucial step toward a more sustainable and equitable energy future. Not only does this expansion benefit the environment but it also stimulates economic growth and job creation.

Many states are recognizing the power of community solar and are implementing policies and incentives to support its development. This allows everyone from low-income households to small businesses to benefit from a single solar installation, making solar power more accessible for those who may not have the means to install their own systems.

According to energy.gov, as of December 2023, approximately 7.3 GW of community solar was in operation in 44 states. As of April 2024, 23 states have passed laws to promote community solar projects and 20 have taken steps to ensure low-income households can participate.

In parallel to community solar expansion is utility-scale solar, large solar power plants that produce electricity for the utility grid. These large solar installations provide fixed-priced electricity during peak demand times when electricity from fossil fuels is most expensive.

Developing utility-scale solar power is one of the quickest ways to reduce carbon emissions, according to the Solar Energy Industries Association (SEIA). There are more than 37,000 MW of utility-scale solar projects operating with another 112,000 MW in development, the SEIA reports.

The rapid growth of community solar and utility-scale represents a major opportunity for EPCs. Those that can demonstrate expertise and a strong track record in both will have a significant advantage as the pipeline for these projects continues to expand nationwide.

TREND 3

Energy storage breakthroughs

The passage of the Inflation Reduction Act (IRA) has also supercharged interest and innovation in energy storage, which is crucial for managing intermittency and ensuring reliable power delivery.

These energy storage breakthroughs are revolutionizing the power grid and have substantial implications for the solar construction market. They can improve the economic case for decarbonization and the prospects for off-grid distributed energy systems. This also enhances the resiliency and efficiency of renewable energy projects.

Efficient, scalable energy storage solutions will be key to providing consistent power and driving long-term growth. By staying at the forefront of energy storage breakthroughs, solar construction companies ensure they are well-positioned for the evolving needs of the market.

TREND 4

Decentralized energy sources

From rooftop solar to small wind turbines, the rise of decentralized or distributed energy sources is disrupting the nation’s traditional centralized power model. These systems operate independently of large plants and transmission lines, boosting reliability and reducing vulnerability to large-scale outages. This makes systems even more attractive to consumers.

The rise of decentralized energy sources provides opportunities for solar construction companies expand their services to include system maintenance and energy storage solutions, to name a couple. Embracing decentralization positions solar construction companies to capitalize on the growing demand for clean, reliable and locally sourced energy.

As the renewable energy sector continues to evolve, solar construction companies can benefit from forming strategic partnerships with technology providers, local governments and financial institutions. Doing so allows them to stay ahead of regulatory changes, gain access to the latest technologies and secure financing for large-scale projects.

While the transition to decentralized energy is underway, the pace and extent of this transition varies widely due to technological, regulatory and economic challenges.

Trend 5

Skilled labor shortages

The Inflation Reduction Act 2022 has propelled the renewable energy industry forward but that has come with a strain on the existing workforce. With the rapid rollout of utility-scale solar farms, community solar initiatives and residential installations, those with specialized skills are in high demand, including solar panel installers, electricians, project managers and more.

To navigate this challenge, EPCs must be proactive and innovative in their approach while also ensuring that their partners have solutions in-place to tackle labor shortages head-on. A great example of such a partner is RenewableWorks.

RenewableWorks is committed to training and building the next generation of renewable energy experts through their U.S. Department of Labor-approved apprenticeship program. Not only does our program help individuals build careers in one of the nation’s fastest growing industries, but it also assists EPCs and renewable energy contractors in meeting their required IRA apprenticeship requirements. A win-win all around.

Partner with RenewableWorks

Looking for solar construction services to support IRA or non-IRA solar projects? Connect with RenewableWorks today. We take pride in providing best-in-class solar construction services for utility, commercial and community projects. Our team has installed more than 23 GW of new solar, so we know what it takes to help make your project a success.