Value engineering first emerged during World War II when material and labor shortages drove General Electric to pursue innovative solutions. Today, value engineering is a widely practiced approach with significant opportunities to enhance processes and results across projects of many shapes and sizes – including designing solar fields.
Value engineering is a systematic methodology used to improve the value of a project by examining its functions and identifying cost-saving opportunities without compromising performance or quality. These cost-savings opportunities can be vital for project-driven industries like solar. With solar development, many initiatives ultimately come down to the cost of creating each kilowatt-hour of energy. If the price is too high, developers won’t pursue the project.
That’s where value engineering comes into play. Smart approaches can help customers maximize profit opportunities and keep projects on track. Sometimes, there’s a more cost-effective way to reach the customer’s end goal.
Here’s a closer look at some of the benefits of value engineering on solar projects.
Cost Reduction – By analyzing various design and material alternatives, value engineering helps identify the most cost-effective options that still meet the project’s requirements. This can result in lower initial investment costs, reduced overall expenditure, and ultimately better profit margins.
Enhanced Performance – Value engineering focuses on optimizing the performance of the solar field by ensuring the components work together to generate the functionality needed. On solar projects, this can drive improvements in efficiency, reliability, and increased power output. It can drive higher returns on investment due to enhanced system performance and reliability.
Sustainability and Innovation – Value engineering encourages the use of innovative technologies and sustainable practices. For customers, this means having access to the latest advancements in solar technology, which can lead to better environmental outcomes and aligned sustainability goals.
Risk Mitigation – Through thorough analysis and planning, value engineering helps identify potential risks such as long lead-time equipment or low production areas. By flagging these risks early, the value engineering process can identify alternative solutions to keep the project on schedule and optimize space utilization at the site. This proactive approach minimizes the likelihood of unexpected costs and delays, ensuring that the project stays on track and within budget.
Value engineering offers unique benefits for engineering, procurement, and construction companies as well. Ultimately, value engineering empowers creative thinking and execution that can improve projects and make more solar initiatives a reality.