{"id":904604,"date":"2025-07-24T11:41:48","date_gmt":"2025-07-24T17:41:48","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=904604"},"modified":"2025-07-24T11:41:50","modified_gmt":"2025-07-24T17:41:50","slug":"solar-field-construction-disputes-manage-cost-overruns-schedule-delays","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/solar-field-construction-disputes-manage-cost-overruns-schedule-delays\/","title":{"rendered":"Solar Field Construction Disputes Are Heating Up\u2014How Utilities and Contractors Can\u00a0Manage\u00a0Cost Overruns and Schedule Delays"},"content":{"rendered":"\n

Caleb M. Sturm and Hannah Jackson | BRG<\/a><\/p>\n\n\n\n

As a surge in utility-scale solar projects converges with shifting trade policies and regulations, new threats to project budgets and completion dates arise when demand for solar energy is at an all-time high.<\/h5>\n\n\n\n

An unprecedented demand for solar energy infrastructure in the United States is on a collision course with trade and policy shifts, setting the stage for a surge in project risk that stakeholders must consider to mitigate exposure to cost overruns, delays, claims, and disputes.<\/p>\n\n\n\n

The continuing artificial intelligence (AI) boom and cryptocurrency computing needs have led to\u00a0record-breaking demand<\/a>\u00a0for electricity consumption in 2025 and 2026, much of which will come from energy generated by solar facilities. According to the US Energy Information Administration (EIA), the US power grid is expected to add\u00a063.0 gigawatts<\/a>\u00a0(GW) of new utility-scale electric-generating capacity in 2025. This is an increase of 30\u00a0percent and 94 percent, respectively, in new capacity compared to\u00a048.6 GW<\/a>\u00a0in 2024 and\u00a032.4 GW<\/a>\u00a0in 2023.<\/p>\n\n\n\n


The industry expects an average of\u00a043 <\/a>G<\/a>W<\/a>\u00a0will be added to the power grid in the United States each year through 2030, suggesting that the demand for solar energy is here to stay for the foreseeable future.<\/p>\n\n\n\n

The EIA\u00a0forecast<\/a>\u00a0that over 50\u00a0percent of new electricity generation capacity this year in the United States will come from solar fields. This projection includes a 30 percent increase in battery storage capacity that can temporarily store the energy generated from solar facilities.<\/p>\n\n\n\n

Figure 1:\u00a0Locations<\/a>\u00a0of New Electric Generating Additions in United States<\/h4>\n\n\n
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At the same time, changing trade policies and tariffs threaten to\u00a0disrupt supply chains<\/a>\u00a0and cause complications that may lead to time and cost impacts. Changes to anti-dumping and countervailing duties on critical materials from abroad may alter supply chains to ongoing projects. In addition,\u00a0changing tax credits and tariffs<\/a>\u00a0may significantly affect the expected cost of larger solar projects. These factors may result in cost increases, time impacts, and red tape to solar projects, introducing an elevated likelihood of claims and litigation if left unaddressed.<\/p>\n\n\n\n

Demand for solar power is expected to remain consistent in the coming years; however, it appears that energy providers and their construction contractors may need to find ways to work through some challenges to keep up with demand. Below we discuss factors that parties to the construction of a solar field may consider when contemplating strategies to manage and mitigate risks.<\/p>\n\n\n\n

Known Drivers of Cost Overruns and Schedule Delays on Solar Projects<\/strong><\/h4>\n\n\n\n