How Solar Energy Is Changing the Construction Industry

Two commercial contractors check job status on a tablet
Solar Energy is changing the construction industry

The solar industry has boomed in recent years and will continue to do so. Solar’s impact on the energy market has reshaped the construction industry — solar’s exponential growth has led to construction growth, as well. Construction contractors are partnering with alternative energy producers to create large-scale solar projects. 

As the demand for solar continues to rise, the construction industry will need to expand and evolve. Contractors will have to make their operations as streamlined and efficient as possible to keep up with solar energy demands. The solar and construction industries will continue to intertwine and expand. 

The Relationship Between Solar Energy and the Construction Industry

The last several years have seen an unprecedented rise in demand for solar panels. With increasingly widespread climate change concerns, solar energy has seen massive growth. In the last decade, the industry’s average annual growth rate has been 42%. And the number of Americans working in the solar sector doubled from 2012 to 2019 when it hit 250,000 workers. Solar energy has earned a position as one of the fastest-growing industries in the American economy. 

There are several reasons for this increase in solar demand. Technological advancements have made solar panels less expensive to produce and more efficient, making them more affordable for the average home and business owner. The government has also implemented incentive programs, such as tax breaks, to encourage using renewable energy. The solar investment tax credit has served as a major push for solar industry growth. 

Not to mention, environmental concerns have become more commonplace in the last few decades, driving demand for alternative energy and other green building techniques. Many individuals are seeking ways to reduce their carbon footprint. Businesses are looking to do the same, in part to improve their brand image and keep up with trends. 

How Does Solar Contribute to Sustainable Projects? 

Solar power is an integral part of green building techniques. Sustainable construction may become the norm, and solar will be a big part of it. Green building has four major components: 

  1. Passive building design: passive building design involves optimized insulation and high-performance windows. 
  2. Low-energy building materials: Green building materials keep buildings energy-efficient and insulated.
  3. Energy-efficient equipment: During construction, equipment should not waste energy. 
  4. Renewable energy technology: This component is where solar comes in. The finished project should include access to renewable energy. 
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Solar Power and Construction Intertwined

The solar energy sector and the construction industry are intertwined, and their reliance on each other is increasing. As more people want solar panels, more solar power projects are necessary. The growing and evolving solar construction market presents a great opportunity for contractors. Both the solar and construction industries benefit from this connection to each other. 

How Does the Construction Industry Benefit? 

This relationship offers benefits for the construction industry. An increased interest in solar power will result in a job opportunity influx for construction companies. Someone has to install all of those solar panels. And solar is applicable anywhere — the only requirement for a solar energy system is access to sunlight. 

This widespread opportunity opens the door for construction jobs in schools, corporate offices, homes and many other locations. The potential for construction jobs seems unlimited. As major energy companies include solar into their operations, communities will see many construction job openings. 

How Does the Solar Industry Benefit? 

The solar industry also benefits from this relationship. As more construction companies specialize in solar construction, installation becomes affordable, accessible and reliable. Companies involved with solar technology and production will benefit from this labor market growth. They’ll have access to a wider variety of installation professionals, who will compete with each other to offer the best services and lowest costs. Of course, this means contractors should be proactive and establish a competitive footing sooner than later. 

Solar energy is more accessible

Where Are We Headed With Solar Energy in Construction Projects?

The solar energy boom will continue to affect the construction industry in the years to come. The trend of green, zero-emission construction should continue to grow in popularity as green building techniques and solar energy become more accessible. With improving technology and additional manufacturers, solar-related prices continue to drop. The industry is projected to see growth in the coming decade. 

Over the next 10 years, experts predict exponential growth of solar capacity additions three-times higher than what we saw in 2020. The figure represents predicted growth across all market segments, including solar customers, utilities, state governments and corporations. 

Construction Is an Integral Part of Solar’s Future

This expansive growth will offer many opportunities for solar scientists, manufacturers and installation professionals. The construction industry will need to be an integral part of the coming decade’s renewable energy transformation. Construction companies that participate in green building, including solar installation, will have countless opportunities. 

Construction companies also may experience an increasing profit margin. As scientists continue to improve solar technology efficiency, panels will become less expensive and easier to install. Decreased manufacturing and installation costs could mean more profits for both the solar and construction industries.

Contractors Should Be Prepared for Growth 

Now is a crucial time for contractors to prepare for industry growth. The predicted rise in demand for solar energy systems will bring an increased need for solar panel construction and installation. Those who perfect these skill sets now will reap the most benefits in the coming decade. It’s an excellent time to establish your business as a leader in solar installation. 

As contractors face rising solar installation demand, they may notice operational inefficiencies. This rapidly expanding market leaves little room for disorganization. Construction companies should iron out any operational kinks to capitalize on market growth. Contractors might consider consolidating their field service management into one user-friendly software. 

With Dataforma service management software, contractors can better organize their document storage, scheduling, reporting, invoicing and other day-to-day operations. The secure software keeps all vital information in one place, letting contractors boost productivity. Improved organization and efficiency can heighten both employee engagement and customer satisfaction. 

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Maximize Project Efficiency With Dataforma

Solar energy is a growing and evolving industry with a lot of future potential, and the opportunity for growth will persist in the coming decade. Contractors will need to establish credibility early to benefit from growing solar installation demands. 

If you’re looking to improve your business operations, consider the leading solar industry project management solution, Dataforma. With our user-friendly software, we provide access to all the tools you need for effective project organization, scheduling, communication, lead management and other operations. See how Dataforma can elevate your construction business — schedule a free, 15-minute demo today. 


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