CSLB C-46 Solar ContractorPlanning and EstimatingEasy
A solar contractor is preparing a bid for a large commercial PV project. The project specifications require a detailed bill of materials (BOM), labor estimates for each installation phase, and a breakdown of soft costs. Which of the following components would be classified as a 'soft cost' in this project estimate?
- ARacking and mounting hardware.
- BSolar modules and inverters.
- CPermitting fees and interconnection application costs.
- DElectrical conduit and wiring.
Show answer & explanationAnswer & explanation
Correct answer: C. Permitting fees and interconnection application costs.
Soft costs in solar projects are expenses not directly related to the physical hardware. Permitting fees, inspection costs, design, sales, and interconnection application costs are all examples of soft costs.
Why the other options are wrong
- A. These are physical materials and therefore 'hard costs'.
- B. These are considered 'hard costs' or hardware components.
- D. These are physical materials and 'hard costs'.
Solar Soft Costs
Non-hardware related expenses in a solar project, including customer acquisition, permitting, inspection, financing, and installation labor.
- Can account for a significant portion of total system cost.
- Vary widely by region and project type.
- Efforts to reduce soft costs are crucial for solar affordability.
Memory trick: Hard is what you touch and see, soft is the paperwork fee!