Faced with comparatively bleak prospects for residential solar for the coming summer, many solar company directors are eying off the commercial photovoltaic sector as a way to survive. This article examines considerations for the leap to large-scale solar, from a selection of industry leaders.

To enter the commercial market, it therefore makes sense for residentially-focused PV companies to progressively tackle larger systems.

While interest in the residential photovoltaic (PV) sector will inevitably return, the largest growth prospects are to be found in the commercial and utility space. Low barriers to entry in the residential solar market may have instilled in many PV companies a misplaced confidence in being able to deliver large projects. This article offers advice and insight into the perils and pitfalls that must be negotiated in order to develop a successful large-scale solar offering, from some of the industry’s best.

The panel of respondents include:

• Rodger Whitby of Ingenero, General Manager of Generation, who was heavily involved in the University of Queensland 1.2 megawatt (MW) array and the 235 kilowatt (kW) Alice Springs Airport Solar Power Station
• Brad McEldowney, Director of Enertech Solar, who was the Engineering Manager and Design Engineer for eco-Kinetics 8 MW system in Thailand
• Lachlan Bateman, Director of Clean Technology Partners, who was responsible for mechanical integration of MW-scale rooftop projects in Italy and Spain for Solar Century.

Guaranteeing solar

A challenge faced when breaking into the commercial market is that its solar systems are driven primarily by return on investment, and therefore require commercial certainty. Performance guarantees are thus required, and can be a pre-condition for a project to progress. Typically, banks only provide project finance when it can be proven that a loan is serviceable under a worst-case scenario of solar energy availability. Not meeting the guaranteed performance usually imposes a financial penalty on the project developer. This can require obtaining back-to-back guarantees from suppliers, notes Mr Bateman.

Little wonder that rigorous analysis is crucial to project success. Investing in a design engineer can assist in identifying and evaluating significant cost savings that can make the difference between abandoning and developing a project.

Mounting and connecting to the grid

One of the major differences of commercial systems, when compared to their residential counterparts, is the civil and structural considerations involved in mounting commercial solar panels. Mr Bateman recollects spending many hours in a wind tunnel refining a non-penetrating roof-mounted system designed to create a lightweight, high-performance, low-cost framing solution that ensured roof structure and roof warranties were not compromised.

Furthermore, structural safety was paramount in the Queensland Government sponsored Metricon Stadium project, in which 57 tonnes of solar panels were mounted 30 metres above the heads of 25,000 spectators. Given the general lack of familiarity in the residential solar sector with the specifics of the Australian structural design wind standards (AS1170), servicing a commercial market often means encountering situations well beyond core competencies.

Timeframe

Another factor which needs consideration in the commercial market is time restrictions. Financial penalties for project delays can keenly focus the attention on the timeframe of a project, creating stress but also inspiring creative solutions. A project completion date may be set by factors such as an end to a government incentive, the onset of a rainy season, or the need for grass to be well-established prior to a football match. Such challenges can be heightened on new-builds, where the solar team must integrate and co-ordinate with many other trades and professions.

Mr Whitby knows to allow for weather, having worked through unseasonal high rainfall in the desert and through Brisbane’s worst floods in decades, in early 2011. In the latter case, the impact of unavoidable delays was minimised by rearranging the installation schedules, so that extensive cabling work was completed at the University of Queensland well before panels were installed on the roof.

Another commonly encountered challenge on commercial systems is grid connection, approval for which can take months and involve unforeseen costs. Connection is just one potential headache of many, however.

Logistics

The installation of large-scale solar involves logistical challenges on a scale not encountered in residential solar. Mr McEldowney stresses the importance of logistics for the successful on-time and on-budget delivery of a project. Installation of a multi-megawatt array invariably demands accommodation and catering for hundreds of workers, and often the nearest town is typically too small to handle such peak demands.

To meet deadlines on Metricon Stadium, panels were air-freighted from the Netherlands early, which gave Stowe Australia the opportunity to test and refine its processes for a smooth rollout. Set against pressures of time,logistics can make or break a project, particularly when the project is of a commercial scale.

Keys to success

So, how to navigate a minefield of challenges whilst developing in-house capability and a reputation? Mr Whitby emphasises the importance of careful planning, good design, quality solar components, excellent project management and a close working relationship with the client.

McEldowney stresses the importance of relationships with suppliers, and a co-operative design team. Unseen challenges will be encountered on every job, although open communication with the client will allow for a positive project outcome.

Often, it is found that the learning curve can be steep. Mr Bateman notes how the engineering, procurement and construction team he worked with in Europe only became profitable once it had integrated the lessons learned from installation of three projects. For companies to survive less profitable commercial jobs, deep resolve and deeper pockets are required, and this serves as a reminder of the importance of learning-by-doing.

To enter the commercial market, it therefore makes sense for residentially-focused PV companies to progressively tackle larger systems. Fortunately, just such an opportunity exists: solar power on small businesses which often face higher electricity prices than residential sector. The requirements at this level are a taste of those at a larger scale, and through strategically investing in developed skills and amassing experience here could secure a position in Australia’s next big solar market.