Reports are somewhat varied here but we find that about 10-20% of the overall site cost goes into labor. The bulk of the rest is component cost for solar modules and tracking systems, which are relatively commoditized and so are a thin margin above the cost of the raw materials to make them (silicon, steel). Those costs won't drop unless the underlying materials get cheaper.
We find that beyond the direct cost, the logistics of getting hundreds of people to a remote site is a significant challenge for construction companies. We directly saw how much of a hurdle this can be when we were on a site with the closest city an hour and a half away. Weather conditions are also a factor here, work on the site was actually shut down due to conditions that were too cold for laborers.
As we've interviewed solar construction companies, all of them have told us that they're turning down potential jobs just because they don't have enough people/capacity to build them. Unfortunately they can't simply raise their hourly rate by a few dollars to make this problem go away, because the challenges are more the regional specificity and logistical challenges of getting workers to sites.
We find that beyond the direct cost, the logistics of getting hundreds of people to a remote site is a significant challenge for construction companies. We directly saw how much of a hurdle this can be when we were on a site with the closest city an hour and a half away. Weather conditions are also a factor here, work on the site was actually shut down due to conditions that were too cold for laborers.
As we've interviewed solar construction companies, all of them have told us that they're turning down potential jobs just because they don't have enough people/capacity to build them. Unfortunately they can't simply raise their hourly rate by a few dollars to make this problem go away, because the challenges are more the regional specificity and logistical challenges of getting workers to sites.