EPC firms, especially the new ones, face significant regulatory and norms related challenges - A report by USA Today reveals that 15% of US counties have set stringent safety-centric norms for solar projects. This includes technical and administrative criteria, outright bans, and other critical prerequisites. In states like Connecticut, Tennessee, and Vermont, there are even instances where comprehensive statewide restrictions have been implemented.
But don’t let these stats impact your projects!
This blog will help you understand common pitfalls that you might encounter and equip you with actionable do’s and don’ts to receive a smooth and swift permitting process for your next solar project.
So, let's kickstart right away with the most prevalent constraints EPCs face in the industry.
What are the Common Hindrances that EPCs Usually Face?
You might think the permitting process is all about submissions and approvals. But there's more to the picture. Here are some common roadblocks faced by both seasoned and new EPC firms, regardless of project outcome:
State-Specific Nuances: Let's say you've built a strong reputation as a solar EPC in California. Now, you land a project in Texas. Great news, except, the regulatory landscape in Texas is entirely different. Each state has several AHJs, with their requirements varying across projects. Above all, researching and understanding these nuances for every new project will be a time-consuming challenge.
Utility-AHJ Balance: On-grid and hybrid solar projects require an interconnection application with the utility company. This application ensures the safety and stability of the grid when your solar system is connected. The catch? Sometimes, the utility might ask for AHJ approval first, and vice versa. This back-and-forth communication can be incredibly tedious and extends the permitting process.
On the Technical Side: The utility interconnection process itself can be quite technical. Without relevant experience or established relationships within the industry, gathering the necessary information can be a daunting task. Even small-sized residential projects might rarely require 4+ hours of effort, just to collect the right data for project submission to the authorities.
The Power of Supplier Networks: A strong network with manufacturers and suppliers goes a long way. If these relationships aren't nurtured, securing essential details from Original Equipment Manufacturers (OEMs) like product documentations, which is not available on public platforms, can be a time-consuming ordeal. Indeed, delays can occur if the manufacturer is hesitant to share details due to a lack of rapport with your company.
System Size: Believe it or not, the size of a project itself can sometimes lead to rejection from the utility company. Reasons for this can vary: the utility might have reached its capacity for solar interconnection in your area, or your project design might not align with its grid stability requirements.
The Knowledge Gap: Obtaining permits can be an iterative process, with revisions requested by the AHJ or utility. Each revision translates to added costs for your company as the design team revises the plans, while the entire approval process restarts with each resubmission. But the biggest challenge of all? Understanding the "why" behind a rejection. Without the technical know-how to decipher AHJ or utility comments, it's difficult to address the issues and move forward. Remember, a rejected project not only delays your timeline, but you might start losing prospects (and profits) in the long run!
Now that you’re clear with understanding the major hurdles you might face, let's equip you with the tools to navigate the permitting process with confidence:
• Understanding Requirements is Your Key: Think of the AHJ and utility requirements as the combination lock to your project's success. Cracking the code requires deep technical research. Here's why:
State & Local Variations: Remember, the state-specific nuances? (viz. Challenge Number 1) Each US state has its own set of AHJs, and their requirements can differ significantly, even within the same state. Some localities might have additional regulations on top of state mandates. Imagine applying for a permit in California with your Texas knowledge – eventual delay and rework. Therefore, in-depth research into the specific AHJ requirements for your project location is paramount.
Decoding Utility’s Lingo: Utility interconnection applications can be riddled with technical jargon. Understanding these requirements ensures you submit a compliant application, avoiding the back-and-forth communication that might otherwise stall your project.
And don't refrain from digging deeper – take advantage of public resources like the AHJ websites, state and local renewable energy departments, and utility company guidelines.
Partner for Success: Let's face it, sometimes taking up multiple roles in your EPC business can be overwhelming. If dedicating time to in-depth permitting research seems like a luxury you can't afford, then consider partnering with an experienced design engineering firm that specializes in solar permitting. These experts possess a wealth of knowledge on handling the ever-changing regulations and boast strong relationships with AHJs and utilities, hence low to no chance of rejection!
Quick Insight: Opt for a company that demonstrates consistent results. Their experience goes beyond just securing approvals. Take the same example of Illumine-i. When a project receives a revision request, one of our seasoned permitting engineers will analyze the AHJ or utility comments and make the necessary adjustments efficiently. This means cost savings for your company and keeps your project on track.
Just Ask the Authorities: There's no such thing as “being lame” when it comes to raising doubts about solar permitting. Utilities are accustomed to fielding inquiries from EPCs, and they'd rather clarify a minor detail upfront than encounter a non-compliant application later. Open communication with the utility firm can help avoid delays and ensure your project aligns with their requirements.
Product Knowledge Matters: What if an AHJ requests equipment specs from a manufacturer you haven't partnered with before? For handling such circumstances, you must possess three key elements from OEM training:
I. Detailed description of technical specifications.
II. Detailed product application knowledge.
III. Comprehensive product documentation.
This will not only help you respond promptly to AHJ requests but also serve as a valuable resource, in case you need to clarify any details with a vendor.
Don’ts of Solar Permitting & Regulatory Requirements
1. Ignoring Local Regulations: Don't assume that regulations are uniform across different jurisdictions or that what works in one location will apply elsewhere. Always research and comply with specific AHJ and utility requirements applicable to your project's location.
2. Procrastination in the Permitting Process: Don't procrastinate in the permitting process. Start early, adhere to timelines, and proactively manage all permit-related tasks to avoid unnecessary delays and ensure timely project completion.
3. Relying Solely on Internal Expertise: Solar projects often involve intricate permitting processes that vary widely across jurisdictions. While internal teams may possess core knowledge, relying solely on in-house expertise can be challenging at times, when faced with unfamiliar regulations or tight deadlines. To ensure a smooth permitting process, consider supplementing your team with external consultants specializing in engineering permits. Their grasp of local compliance requirements can be instrumental in expediting your project and minimizing interruptions.
4. Winning the Application: Don't submit a generic interconnection application. Make sure you invest time in grasping the technical terms and aligning your application with the utility's exact requirements. In the end, this spares you from both excess time and unnecessary stress.
5. Lack of Communication: Don't fail to communicate effectively with AHJs, utilities, suppliers, and other stakeholders involved in your project. Clear and consistent communication helps clarify requirements, resolve issues promptly, and build positive relationships essential for successful permitting.
6. Inadequate Risk Assessment and Mitigation: Don't overlook risk assessment and mitigation strategies specific to solar installations. Identify potential risks, like weather-related impacts, supply chain disruptions, or regulatory changes, and develop contingency plans to minimize project disruptions and financial liabilities.
By adhering to these do's and avoiding the don'ts, you can enhance solar project approval rates, minimize delays, and advance sustainable energy solutions. Remember, each step towards compliance brings us closer to harnessing solar energy's full potential for a cleaner, brighter future.
In summary, ensure you:
• Familiarize yourself with and anticipate jurisdiction-specific permit requirements.
• Collaborate with experienced partners to optimize project management and compliance.
• Communicate directly with utilities and maintain thorough documentation to handle the challenges of permitting effectively.
The documents that you need for a solar permit application vary by location, but common requirements include Site plan, PV Layout, Structural Plan, String Layout, Electrical String Layout, Elevation view, Placards, and Equipment Specifications.
If your solar permit application gets rejected, the AHJ or utility will provide a rejection letter on why it was not approved and what needs to be corrected for resubmission. Just pass along your rejected plan to our engineers, and we’ll tweak the revisions to get it approved.
Once you receive approval for your solar permit, you can commence the installation. Note that many AHJs will require physical site inspections post approval, to verify if the design layout matches the actual installation.
The permitting process for DIY solar projects can be complex and time-consuming compared to working with a professional installer, as you need to administer the entire approval process, all by yourself. And since your application won't have the backing of a licensed solar firm, the AHJ may request more information or conduct finer inspections, thus increasing the cost of the permit.
Solar permits of installations vary based on the project scope and location. Building permits and electrical permits are mandated for structural integrity and safety code compliance; while a few AHJs require additional documentation based on the jurisdiction’s requirement. Check with your local building department and Utility to determine the permits needed for your solar project.
