Why Should You Work with an EPC for Your Solar Project?
The Solar EPC (Engineering, Procurement, and Construction) model combines the three main phases of a solar project. By combining these processes under a single contractor with centralized project management you can ensure the successful implementation of your solar project.
What is a Solar EPC?
When you work with a solar EPC company, you are hiring a single company to design and engineer your solar system, source (procure) the equipment needed to build that system, and then construct and commission the solar system, ensuring that the project is operational, meets specified requirements, and is delivered within the agreed time frame and budget.
After constructing the solar system, EPC companies will continue to perform regular checks and maintenance to ensure your solar system works at optimum efficiency.
An EPC solar company typically does not use subcontractors, handling the entire process in-house, except for specific requests that are outside of a solar contractor’s scope of work. For example, solar EPCs will often hire a steel contractor to build a carport structure. Solar EPCs are especially well-suited for large-scale solar installations, such as commercial and industrial projects, that require a coordinated and efficient approach.
Key Components of Solar EPC
1. Design and Engineering
Design and engineering span the process from assessing the client’s needs to producing a detailed engineering plan.
At TENCO SOLAR, before we begin the Design and Engineering phase, we spend time with each client to ensure we fully understand the goals for the solar project. Understanding the client and their goals allows us to make more informed decisions about scale, design, and placement of the system. In addition, we take the time to review a client’s energy bills to evaluate whether they are currently on the best utility rate for their usage patterns. Once we understand a client’s energy usage, patterns, and any plans that could affect your energy usage in the future, we will conduct a comprehensive site assessment to confirm the viability and placement of a solar system.
TENCO SOLAR will also begin evaluating which tax incentives, rebates, and solar financing options would be a good fit for the client.
All of the information we’ve collected at this point will be combined to design and engineer a custom system tailored to the customer’s needs. During the design phase, it is crucial to take into account utility compliance and Authority Having Compliance (AHJ) compliance. For utility compliance, we must consider the California Energy Commission’s Title 24 standards, as well as building size, roof area, energy usage, and local grid interconnection requirements. AHJ compliance requires us to take into account local building, electrical, fire, and wind codes, including setbacks and clearances.
After developing a design for the solar system, the next step is to create electrical and mechanical plans that ensure the solar installation operates at maximum efficiency and still meets all regulatory requirements. This also involves the selection of solar panels, inverters, and other system components to create a cohesive and effective energy solution. Completed electrical and mechanical plans will include electrical layouts, mounting specifications, engineering calculations, and detailed technical specifications for the solar panels, inverters, and racking systems.
Once engineering plans are approved, we will obtain permits for construction from the AHJ. After submitting a permit application, including detailed project plans, the AHJ will then review the plans for compliance with building codes and regulations. The permit process may involve multiple AHJ departments including building, fire, electrical, and plumbing depending on the scope of the project.
Once we receive the AHJ permit, TENCO SOLAR will submit an interconnection application to the utility. The interconnection application explains the solar system design, wiring diagrams, location of the utility meter, and the capacity of the inverter which allows the utility to assess how the system will connect to the grid. This process may require a site visit from the utility to complete a grid compatibility check.
Once the interconnection application is received, TENCO SOLAR can begin construction.
2. Procurement
In the procurement phase, which usually occurs during the permitting process described above, TENCO SOLAR will source all the equipment, materials, and services necessary for the project. An effective procurement strategy prioritizes both quality and cost-effectiveness to ensure that only reliable, high-performance equipment is selected. This step is crucial in safeguarding a project's longevity and ROI.
3. Construction
The construction phase involves the actual installation of the solar power system on site, including site preparation, mounting of panels, wiring, electrical connections, and integration with your existing power supply system.
TENCO SOLAR will manage all construction activities to ensure that the installation meets the specifications developed during the engineering phase. We prioritize on-time, on-budget project delivery, while maintaining a high level of workmanship, safety, and quality control.
The final steps in the construction phase are testing the solar system, inspection by the AHJ, commissioning, and interconnecting the system to the local utility’s grid.
In addition to these key components, TENCO SOLAR will conduct post-installation equipment monitoring and maintenance.
Advantages of Working with an EPC
Greater Accountability
An EPC contractor provides holistic project oversight and a single point of accountability for the client throughout the entire process. Having only one company manage the project from start to finish reduces conflict, ensures the contractor is fully invested in delivering a successful project, and is an efficient way to guarantee all project components align, with minimal disruption and maximum accountability.
Streamlined Project Management
When an EPC manages engineering, procurement, and construction under one contract, they are able to simplify project timelines and reduce the risk for delays from subcontractors. This provides a simple solution for customers looking for a complete solar installation package, without the complexity of coordinating and managing multiple contractors.
Cost Management
Since the entire project is completed through one company, many EPC contracts use a fixed-price structure, where the price for the project is set up front. When working with an EPC using a fixed-price structure, customers minimize the risk of unexpected expenses and help ensure the project will stay within budget.
Quality Assurance
Since the EPC contractor is responsible for the project from start to finish, they will be strongly incentivized to maintain high quality standards and a commitment to excellence throughout the process. Having only one contractor involved in the process will also lead to smoother inspections and a faster resolution time if maintenance issues arise in the future.
EPC vs. Design-Bid-Build
Unlike in the EPC model, where engineering, procurement, and construction is handled by one company, in the Design-Bid-Build model, separate contractors handle design, bidding (procurement), and building (construction).
We believe the EPC model is superior because there is a single point of contact throughout the project lifecycle, fewer chances for miscommunication, better coordination among project team members, and enhanced accountability for the project team.
In addition to EPC Solar Companies, there are several other types of single service solar companies.
- Solar Equipment Manufacturers manufacture solar panels but most of these companies do not provide installation services.
- Solar Dealers sell solar products and services on behalf of another company. These companies usually hire independent contractors to sell their products, engineer the system, install the solar system, and complete service work. Solar dealers have become more prevalent because it requires very little infrastructure to set up this type of company and hire subcontractors to complete the work. Consumers should by wary of solar dealers as the quality of work you will receive is completely dependent on the subcontractor.
- Solar Finance Companies provide financing to customers interested in purchasing a solar energy system. They typically partner with solar dealers and solar installers.
- Solar Lead Generation Companies generate leads for other solar companies. They act as a marketing and advertising firm for solar products, but do not complete any installations or service work.
- Subcontract Solar Installers are hired by solar dealers to install solar systems or perform maintenance work.
- Solar Brokers will provide you with multiple bids on your project. These companies will compare solar companies and proposals for you in exchange for a commission.
Choosing the Right Solar EPC Partner
When evaluating potential EPC partners, it is important to consider multiple factors:
- Industry Experience: Look for an EPC contractor with a proven track record installing solar projects. TENCO SOLAR has been installing solar systems throughout California for more than three decades.
- Project Portfolio: Review the company’s portfolio to ensure they have experience with similar projects. TENCO SOLAR has experience installing a wide range of solar system sizes for multiple industries.
- Commitment to Quality: Adherence to industry standards and a long-term commitment to producing quality work are key indicators of a reliable EPC contractor. At TENCO SOLAR one of our values is to Execute with Excellence – we believe our success is a result of our innovative spirit, technical expertise, and a passion for flawless execution.
Is TENCO SOLAR an EPC?
Yes, TENCO SOLAR is an EPC with a commitment to excellence and a history of successful solar installations. By choosing TENCO SOLAR as your Solar EPC partner, you will benefit from a team dedicated to providing high-quality, sustainable energy solutions.
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