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The industry needs product standardization to further decrease costs

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By Derek Noble, National Sales Director, Light Commercial, SunPower

For the solar industry, 2016 will be one for the record books. Greentech Media Research and the Solar Energy Industries Association are anticipating that, while 7.4 GW of solar PV will have come online in the U.S. in 2015, installed capacity is likely to double to more than 15 GW in 2016.

That’s great news for solar installers. With that opportunity, however, comes the responsibility to maintain a laser focus on quality, safety and cost reduction. By focusing on those three areas of business, the industry may successfully navigate through the expected tremendous surge in activity in 2016 and the future industry boom.

Maintaining high standards for quality and safety while simultaneously eliminating cost may sound like an impossibly high bar in a world where higher quality is often accompanied by a higher price. But, in fact, it simply requires standardization.

Standardization in practice

Standardization is an approach used by other industries to achieve meaningful efficiencies in materials and cost, while building customer loyalty. At the turn of the 20th century, Henry Ford famously introduced the concept of standardization with the design and manufacturing of his Model T automobile. The Model T was simple, affordable and built to last. There were no fancy options, and it was only available in black. Sales surpassed expectations and, in an era when hundreds of car makers were competing for attention, the Model T eventually captured 60% of the market.

Similarly, Southwest Airlines has carved a uniquely successful niche in its market by using just one model of aircraft, the Boeing 737. This allows Southwest to train its maintenance personnel on the mechanics of just one kind of airplane, and to achieve economies of scale from the tools and parts required to service that one model. Southwest pilots and flight attendants are well versed in the operations and procedures aboard any Southwest airplane they fly. Standardization has allowed Southwest to achieve 42 consecutive years of profitability, an unprecedented record in the brutally competitive airline market.

Standardization in solar

SunPower's Helix system, a fully integrated option for commercial customers

SunPower’s Helix system, a fully integrated option for commercial customers. (Credit: SunPower)

Today there is a dizzying range of solar technology products available to solar customers. Understanding the features and specifications of various panels, mounting systems and electrical systems requires a great deal of research and experience in the field. Nevertheless, customers expect their installers to provide expertise and counsel on the broad array of complex system components available, as well as impeccable workmanship, while minimizing labor and system costs.

For the sake of quality, safety and continued cost competitiveness, it’s time for the solar industry to standardize.

SunPower offers an example of standardization in solar with its Helix, a fully integrated system for commercial customers. Helix is designed with standardized, modular components that speed installation, enhance performance and safety, and are built to last. Including integrated cable management and SunPower modules, Helix also features:

  • A mounting system that cuts down panel installation time, minimizing business disruption and reducing labor costs.
  • A plug-and-play power station that includes the inverter, AC combiner, eBOS mount, DC branch and AC whips. All wiring is completed in the factory, reducing labor costs during installation, eliminating wiring errors and enhancing safety.

Standardizing these components eliminates the inefficiencies and added costs of complex system design. SunPower made the complex simple.

Solar in the U.S. has grown tremendously over the last decade. Along the way, there have been a variety of technologies and business models, and the industry has matured. The U.S. now has a good understanding of how solar power systems must be engineered to deliver the performance customers expect and support the growth of businesses. Standardization is the key to further advancements in quality, safety and cost reduction. With standardization, solar will continue to advance as a reliable, mainstream energy source in 2016 and beyond.

 

Solar Power World


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