Solar Tech Talk E14: Pivotal Time for Solar: Inflation Reduction Act and PVpallet’s Sustainable Shipping Solution

Highlights from This Episode:

Inflation Reduction Act (00:16)

First and foremost, on our minds this month: the Inflation Reduction Act(IRA), which President Biden signed on Tuesday, August 16, and has been deemed one of the most influential climate bills ever to pass through Congress. While the bill contains various support systems for policy initiatives, there are several items that make a huge impact on climate goals.

“We care a lot about trying to make sure that the energy transition… doesn’t leave anybody behind,” says Aaron. “Having these funds [helps] communities that otherwise would have trouble getting access to renewable energy [have] an avenue in which they can actually improve their lives in the same way that other people who adopt the technology experience.”

So, how does the IRA impact solar installers directly?

Most prominently, the extension of the Investment Tax Credit (ITC) at 30% into 2032 is a huge advantage. And while this is a very positive development, the reality is the effects of this bill won’t be seen for quite a while on the installer level.

“It could end up driving growth in a way that continues to contribute to upward pressure on pricing and that contributes to the general challenges that everyone feels,” Aaron says in reference to near term expectations around supply chain and pricing challenges in the market. “So, we anticipate that it’s just going to become all the more important for [solar installers] to be trying to plan ahead. Making sure that they establish deep and reliable relationships with their distribution partners and that those distribution partners understand what their book of business looks like in a realistic way that will allow them to accurately forecast.”

A great way to do this is have a conversation with your BayWa r.e. Account Manager who can guide you through forecasting to support your company’s best interests in the near and long term.

Tiernay and Aaron’s resources for this conversation:

• The Inflation Reduction Act: The policies in the IRA, explained | Vox
• How will the Inflation Reduction Act affect you? | Vox
• Analysis: Democrats score big wins on climate, drugs with $430 billion U.S. Senate bill | Reuters
• Senate Climate Change IRA Bill Will Largely Benefit Republican Districts | Bloomberg

What is PVpallet? (13:29)

As any solar installer knows, transporting modules using traditional wooden pallets creates a huge amount of wasted wood and many times, modules arrive damaged. PVpallet has found a solution to both these issues and is improving the industry in 2 key ways:

“As a company, [we] have designed and are distributing the solar industry’s first reusable, recyclable, and collapsible shipping container,” says Phillip. Each pallet is made from 1000 recycled plastic milk jugs and replaces numerous one-time-use wooden pallets over its lifetime. And, after a pallet has reached end of life, it is ground up and remolded to create a new pallet.

There are over 10 million wood pallets used to ship PV modules around the world annually; PVpallet is minimizing the industry’s dependency on unsustainable shipping practices to enhance the overall supply chain system for solar modules.

“There’s a ton of module breakage that occurs because wood pallets are flimsy and low quality and offer no protection to the cargo,” says Phillip. “We have eliminated flex in our pallets by having a two steel reinforcing tubes that run the length of the base to provide extra strength.”

PVpallet’s sturdy side walls, structured base, and supporting cross braces ensure module breakage is a thing of the past. “When you stack two wood pallets on top of each other with cargo on them the entire weight of that upper pallet, which can be upwards of 2000 pounds, is resting on top of the cargo below,” he says. The PVpallet side walls support all of that weight, removing any burden on the modules.

Getting the Solar Industry on Board (20:04)

The most exciting part of launching a new product is seeing customers get on board with a product’s purpose. “Today, the people that we are seeing get the most value out of [our pallets] are decommission and distribution companies and small installers,” Phillip explains. “And the reason for that is those companies are already having to re-palletize. Those companies are dealing with partial loads and waste issues in the field and the labor impacts and the disposal costs.”