The U.S. utility-scale solar sector continues its historic growth trajectory, adding 12 GW of new capacity in the first half of 2024 — 59% of all utility-scale power plant additions. Florida and Texas led the nation, contributing 38% of the new solar capacity. Analysts forecast the country to finish the year with 37 GW of new utility-scale solar capacity, more than doubling 2023’s record-setting additions.

However, this impressive expansion creates its own obstacle: dwindling availability of suitable land for new utility-scale solar projects.

The more new projects that come online, the more EPCs and developers must navigate an increasingly complex siting process to identify locations with available energy infrastructure, obtainable land, and minimal local regulatory restrictions.

With the most optimal land developed, EPCs and developers must become more creative and flexible in site selections and designs. Fortunately, recent federal land management policy developments and solar PV technology advancements offer promising solutions to these challenges.

BLM Updates Land Use Processes to Facilitate Renewables

Leasing land from the U.S. Bureau of Land Management (BLM) to site utility-scale solar projects has long been a common practice since BLM manages vast swathes of public land with high irradiance in the West. However, approvals involved a lengthy, clunky, and resource-intensive process.

In a major victory for the solar industry and the country, the BLM recently released the final Renewable Energy Rule, streamlining the process of securing and developing public land for renewable energy projects.

The rule introduces several favorable important changes:

1. Reduced annual rent and capacity fees: Instead of charging right-of-way (ROW) grantees both acreage rent or capacity fees, BLM will now only charge the greater of the two, significantly lowering annual costs for projects on BLM-administered lands. Meanwhile, the bureau will calculate capacity fees based on actual electricity production rather than nameplate capacity, with an 80% reduction for ROWs issued before 2036.

2. Noncompetitive leasing in Designated Leasing Areas (DLAs): BLM can now issue noncompetitive renewable energy leases within DLAs, offering more flexibility and potentially opening up more lands for development.

3. Extended maximum term for ROWs: The rule extends the maximum term for renewable energy ROWs from 30 to 50 years to reflect renewable energy technology advancements.

4. Incentives for domestic content and project labor agreements: The rule provides up to 40% additional capacity fee reductions for projects using American-made materials and project labor agreements.

In addition to the final Renewable Energy Rule, BLM is updating its Solar Energy Programmatic Environmental Impact Statement (PEIS), commonly known as the Western Solar Plan. The revised PEIS proposes expanding solar planning to 11 western states (up from 6 in the 2012 plan) and further streamlining the permitting process in identified priority areas. 

BLM's preferred alternative in the draft PEIS offers 22 million acres for new PV project applications, striking a balance between accelerating solar development and protecting critical resources with responsible utility-scale solar development on public lands in the West.

The bureau implemented these changes to alleviate financial burdens, expedite approvals, and attract more utility-scale solar project development on federal lands.

Innovations in PV Technology Maximize Yields and Reduce Costs

In parallel with these regulatory changes, solar PV technology advancements can help EPCs and developers address land scarcity issues by enabling more flexible system designs with higher energy yields on smaller footprints while lowering levelized cost of energy (LCOE). One such innovation is ultra-high-power and ultra-high-efficiency n-type TOPCon PV modules.

For example, using Vertex modules with N-type TOPCon technology elevates utility-scale solar projects with:

1. Higher power and efficiency: N-type TOPCon Vertex modules achieve up to 24% efficiency, allowing for greater energy generation in a smaller area.

2. Lower temperature coefficient: N-type TOPCon modules have a lower temperature coefficient, enabling excellent performance even in high temperatures, an essential feature for top solar markets like Florida and Texas.

3. Reduced light-induced degradation (LID): N-type TOPCon modules undergo less LID, resulting in higher energy yields over the project's lifetime.

4. Increased Flexibility, Reduced Costs: N-type TOPCon modules enable a low-voltage, high-string power system design that can significantly increase the string power, resulting in a corresponding decrease in the accompanying balance-of-system (BOS).

5. Lower LCOE: The combination of higher efficiency, better temperature performance, reduced degradation, and BOS savings significantly lowers LCOE for projects using n-type TOPCon modules.

A Strategic Path Forward for Utility-Scale Solar EPCs and Developers

For EPC firms and developers, the combination of BLM's updated land use policies and the adoption of advanced solar technologies like n-type TopCon modules offers a strategic path forward. By leveraging these developments, they can overcome the challenges of land scarcity and continue to drive the growth of utility-scale solar projects.

• Strategic Site Selection: Utilize BLM's new leasing options and prioritization criteria to secure sites that balance development potential with environmental considerations.

• Advanced Technology Adoption: Integrate n-type TopCon modules into project designs to maximize energy output and efficiency, reducing the need for extensive land use.

• Financial Optimization: Take advantage of reduced fees and streamlined processes to improve project financials and accelerate timelines.

Interested in learning more about the benefits of the highly efficient and highly reliable Vertex N for greater utility-scale solar siting flexibility? Reach out to the local Trinasolar US team today.