Integrating solar into your metal business
by David Flaherty | 4 September 2024 2:14 pm
Since the introduction of the Inflation Reduction Act, the U.S. solar market is now poised to reach 30 percent of U.S. electricity generation by 2030. Along with a host of tax credits and incentives for qualifying projects, these policies have already accelerated economic growth, triggering an avalanche of solar development throughout the United States.
The metal construction industry is positioned to capitalize on the growth of solar as metal roofing provides an ideal platform for mounting solar and is the only roof type with a service life (in the range of 50-70 years) exceeding the service life of a solar photovoltaic (PV) system (an average of 32.5 years). Metal roofing is also the most sustainable roof type and is conducive to lower solar installation costs, which is important to buyers who are conscious of both environmental and economic energy efficiencies. According to “Rooftop Solar on the Rise,” a report by The Frontier Group and the Environmental America Research & Policy Center, rooftop solar is just beginning to scratch the surface of available rooftop space in the United States, utilizing only 3.5 percent. The study states, “America could produce the equivalent of 45 percent of the electricity we currently use from rooftop solar, yet, in 2022, rooftop solar provided only 1.5 percent of America’s electricity.”
Why is this important for the metal construction industry?
A golden opportunity exists for metal roofing and metal building contractors to take advantage of the synergies between metal and solar by expanding their business offerings to integrate rooftop solar installation services. There is an overlap of existing skills and some new skills to acquire, but overall, they are a perfect fit. Metal building and roofing expertise provide a competitive advantage to these contractors, as these are valuable skills missing in many solar installation companies today.
This vertical expansion can double gross revenues on any given project and is a significant added value to their client offering. Why leave it to the next crew on site? Metal roofing and metal building contractors can expand their footprints and enjoy a bigger piece of the project pie. In addition to opportunities for growth and increased revenue streams, opportunities exist to gain new skills, expand education in solar installations, increase employee retention, improve worker satisfaction, and create more robust teams.
As these contractors expand their services into solar installations—becoming a single source for both—the result will be
an increase in the emergence of metal building construction as the perfect host roof while the demand for solar grows.
How do you get started?
Naturally, there is a learning curve to expand your team to include solar installations. Some new skill sets are required to break into a new industry and subsequently learn and master. The three key skill sets include:
- Performing the solar installation—add a licensed electrician with solar experience to the team via hiring internally or outsourcing.
- Designing and engineering rooftop solar projects—add a qualified solar electric designer to the team.
- Selling solar and installation services to prospects—add a solar economic and financial modeling skillset to support sales.
The team should keep abreast of the U.S. solar industry, which is rapidly changing. Solar is always evolving with newer and better products along with financial incentives, rules, and regulations. It is important to be the expert on all available financial incentives to help customers make the best decisions. It is also crucial to understand the best systems available, how they are installed, how to offer them to customers, and how to close the deal.
Installing rooftop solar projects
The template to integrate solar is already available. A great way to get started on the path to installing solar is to utilize and learn from all the resources available online. One of the best clearinghouses for installing solar is the Solar Design and Installation Training site managed by the U.S. Office of Energy Efficiency and Renewable Energy at www.energy.gov/eere/solar/solar-design-and-installation-training.
This resource identifies programs and agencies to help a company develop its team. For instance, it is commonplace for solar installers to become certified through
the National American Board of Certified Energy Practitioners’ (NABCEP) programs. Solar installer education happens on the job too, so arranging on-site staff training is extremely beneficial. If working with a particular product, often the manufacturer will also offer training.
For details on installing solar on metal roofs, the Metal Construction Association (MCA) offers a three-part white paper series on solar PV and metal roofing at metalconstruction.org. This is also a great place to start educating the workforce.
Within a solar installation, there are two major components: the mechanical installation and the electrical installation. Mechanical installation is the physical installation of the solar modules and the mounting system, which is the hardware that attaches or secures the modules to the roof. This component is a great fit for metal roofing and metal building contractors. The learning curve should be straightforward and relatively easy. Many of the best practices for getting up to a roof, staging materials, and maneuvering around the roof safely are the same as those with roof installation, and the skillset for attaching items to roofs is already well-known.
The other significant component of a solar installation is the electrical installation, which is a completely different field. This is the installation of all the wiring between module groupings to the electrical equipment that converts the DC electricity to AC. It also involves the installation of the inverters and wiring from the inverters to the electric meter interconnection. This work must be completed by licensed electricians and journeymen, as required by local code. There are different approaches to this. Companies that do not possess the electrical skillset and do not have licensed electricians on board can outsource the electrical contracting work. Some electrical contractors are happy to perform the electrical work only (and not the mechanical installation). In this case, it may be prudent to hire one solar electric expert who can effectively manage the outsourced teams and potentially perform the system design work as well.
Another approach is to bring electrical expertise in-house. The benefits of utilizing internal staff include lower costs and increased managerial control. The initial big lift is to hire and train staff, ensuring they possess or will obtain the applicable licensing. This is yet another opportunity to retain staff by providing opportunities for metal roofing and metal building contractors to add a new dimension to their career advancement through education and on-the-job training.
Solar project design and engineering
Just like any construction project, project planning and engineering are critical components of every solar project. These steps also require capable individuals who can use design tools and are well-versed in mechanical and electrical building code requirements. The resulting output is a drawing set and calculation package, which not only documents the design in every aspect but is also the package submitted to building officials as part of the permit application. These are like construction project designs, as engineers with construction plan set experience can adapt.
As with the electrical installation pieces, a company may choose to outsource the design and engineering function—at least to get started. Numerous companies specifically provide solar project design and engineering services. They will create entire plan sets and permit packages and generally have licensed professionals who provide support throughout the process.
Selling solar
Solar is a major investment, and before a solar contract is awarded, the building owner must be sold on the concept. Commercial investments are driven by hard number life-cycle cost analysis, ROI, and lower building operational costs over extended periods—not sales fluff. The investment in solar is prudent based solely on economics. Therefore, it is important for a company expanding into solar installations to develop the knowledge necessary to sell solar along with their newly expanded installation services. The more information conveyed with accurate data and financial projections, the easier it will be to close the deal.
An important step when engaging with a potential customer is to provide a solar layout on the roof and an associated financial analysis, which maps out the cost savings, operation and maintenance, ROI, cash flow analysis, and internal rate of return over the 30-plus year life of the solar system. Several software packages can carry out this work and provide a fully documented financial proforma. Along with such software, being informed of federal, state, and local utility incentives is critical to understanding the economics and the ability to explain them to potential customers. A resource for this information is dsireusa.org.
As the message conveying metal roofs are the best platform for solar gains more traction from these newly integrated companies, the metal building industry will have the opportunity for exponential growth due to the growth of solar. Additionally, the value of the solar project that is put on the building dramatically increases the value of the building. The challenge is to identify and close the gaps; however, the roadmap and resources are all readily available.
Mark Gies is director of strategy and market development at S-5! with 15-plus years of solar energy industry experience ranging from product development, operations, installation, compliance, codes and standards, and sales and business development. He is the vice chair of SEIA’s Mounting System Manufacturers Committee, a member of SEAOC’s PV Committee, and a founding member of UL 2703’s Standards Technical Panel.
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