Array Technologies, Inc. (ARRY): PESTLE Analysis [Nov-2025 Updated]

You need to know exactly what's driving Array Technologies, Inc. (ARRY) right now, and the picture is a high-stakes tug-of-war. On one side, the Political tailwind from the Inflation Reduction Act (IRA) is massive, promising domestic content tax credits that will defintely boost their order book. But on the other, Economic headwinds-specifically high interest rates near 5.50% and persistent global trade friction-are slowing down utility-scale project financing and squeezing margins through late 2025. This PESTLE analysis cuts straight to the core risks and opportunities, so you can map your strategy with precision.

Array Technologies, Inc. (ARRY) - PESTLE Analysis: Political factors

Inflation Reduction Act (IRA) provides significant domestic content tax credits.

The Inflation Reduction Act (IRA) of 2022 is a massive political tailwind for Array Technologies, Inc., creating a clear financial advantage over competitors reliant on foreign supply chains. The IRA's Section 45X Advanced Manufacturing Production Credit (AMPC) and the Domestic Content bonus for the Investment Tax Credit (ITC) are fundamentally reshaping the economics of utility-scale solar projects.

Array Technologies, Inc. is strategically positioned to capture the maximum benefit. They expect 100% of their solar trackers to be eligible for the domestic content benefits in the first half of 2025, largely due to their new Albuquerque, New Mexico, manufacturing facility and secure supply agreements with U.S. steel producers. This domestic production capability drove a significant surge in their gross margin, which hit 35.4% in Q3 2024, up sharply from 26% in Q3 2023.

The financial incentive is concrete: projects using 100% domestically manufactured components, like Array Technologies, Inc.'s trackers, qualify for the maximum 28.7% Assigned Cost Percentage (ACP) under Treasury Notice 2025-08. This includes a 9.4% production ACP for locally produced parts, a direct subsidy that lowers the cost of goods sold for their customers. This is a massive competitive edge.

US-China trade tensions continue, impacting solar component supply chains.

Geopolitical friction between the U.S. and China remains a major source of volatility, which paradoxically creates a near-term opportunity for Array Technologies, Inc.'s domestic-first strategy. The core issue is the persistent Chinese dominance in the solar component supply chain, even as manufacturing shifts to Southeast Asia to avoid tariffs.

The U.S. government's aggressive trade enforcement, including the Uyghur Forced Labor Prevention Act (UFLPA) and escalating Anti-dumping and Countervailing Duties (AD/CVD), has made supply chain security a top priority for utility-scale developers. This uncertainty has already caused monthly U.S. import volumes to plummet from an average of 5.3 GW to just 2.4 GW since Q4 2024, as suppliers adjust to the new tariff landscape.

You're seeing developers pay a premium for certainty, and Array Technologies, Inc. offers exactly that. Their minimal reliance on foreign-sourced structural components insulates them and their customers from this trade risk, a key factor driving their domestic orderbook growth, which was up 20% at the end of 2024, boosting their total orderbook to $2 billion.

Anti-dumping and countervailing duties (AD/CVD) on imports create supply volatility.

The finalization and expansion of AD/CVD tariffs on solar imports have created a chaotic and expensive procurement environment for solar modules and cells, which are paired with Array Technologies, Inc.'s trackers. The U.S. Department of Commerce has imposed steep duties on imports from Southeast Asia, with rates soaring as high as 660.04% for some Cambodian producers and up to 71.74% for certain Vietnamese suppliers like Jinko Solar.

The market's reaction-a frantic search for new suppliers-immediately triggered new trade actions. In Q3 2025, a new AD/CVD investigation was launched against imports from India, Indonesia, and Laos, with alleged dumping margins reaching up to 249.09% for Laos. This 'whack-a-mole' approach to tariffs means:

• Project costs rise due to potential cash deposits up to 190%.
• Supply bottlenecks are created, risking project delays.
• Domestic content, like Array Technologies, Inc.'s trackers, becomes a crucial risk-mitigation tool.

This volatility is a headwind for the entire industry, but it makes Array Technologies, Inc.'s domestic manufacturing a powerful sales tool.

State-level renewable portfolio standards (RPS) drive utility-scale demand.

While federal policy gets the headlines, state-level Renewable Portfolio Standards (RPS) and Clean Electricity Standards (CES) are the bedrock of utility-scale demand, which is Array Technologies, Inc.'s core market. These mandatory targets require utilities to source a minimum percentage of electricity from renewable resources, creating a long-term, policy-driven demand floor.

The trend is toward higher and more aggressive targets. Currently, 16 states have RPS targets of at least 50% of retail sales, and another 16 states have adopted a broader 100% CES. Key 2025 milestones include New Mexico's 40% RPS and Oregon's 27% standard for large investor-owned utilities.

This sustained policy pressure is projected to drive massive future demand. The combined clean electricity demand from RPS and CES policies is expected to grow from roughly 500 TWh today to 1700 TWh by 2050. This translates directly into a robust pipeline for utility-scale solar projects, which in turn drives demand for Array Technologies, Inc.'s solar trackers. The political commitment at the state level is defintely a long-term stabilizer.

Array Technologies, Inc. (ARRY) - PESTLE Analysis: Economic factors

High interest rates (e.g., 3.75%-4.00% Federal Funds rate) slow utility-scale project financing.

The cost of capital remains a primary headwind for utility-scale solar projects, which are inherently capital-intensive. While the Federal Reserve has begun easing, the target range for the Federal Funds rate sits between 3.75% and 4.00% as of November 2025, which is still a significant hurdle compared to the near-zero rates of a few years ago. This elevated rate environment directly increases the cost of debt, equity, and tax equity financing-the lifeblood of large-scale renewable energy development.

For Array Technologies, this means their customers-Independent Power Producers (IPPs) and utilities-face a higher discount rate when evaluating a project's long-term viability. Higher rates reduce the project's internal rate of return (IRR), making marginal projects less viable or causing developers to delay final investment decisions (FID). Honestly, a higher cost of capital is the single biggest brake on the deployment of new solar capacity right now.

The industry is seeing a mixed impact:

• Project Delays: Uncertainty from financing costs, alongside policy and interconnection delays, has pushed back timelines for some utility-scale projects.
• Financing Shift: The market for monetizing tax credits, which is expected to exceed $40 billion in 2025, is helping to inject capital, but the cost of that capital is still sensitive to broader interest rates.
• Residential Impact: The residential solar segment, which relies heavily on consumer loans, saw a 9% year-over-year decline in installed capacity in Q2 2025, a clear sign of rate sensitivity.

Global steel and aluminum price fluctuations still pressure gross margins.

Array Technologies' core product-solar trackers-is a steel and aluminum-intensive manufactured good, so commodity price volatility is a constant threat to profitability. The company has managed to mitigate some of this risk, but the pressure is clear in their financials.

Management's updated full-year 2025 Adjusted Gross Margin guidance is tightly constrained to a range of 27% to 28%. This guidance explicitly accounts for the impact of raw material costs and associated tariffs. To be fair, Array Technologies has been proactive, reporting a reduction in its tariff exposure to less than 14%, thanks to domestic sourcing and strategic negotiations.

Here's the quick math on the commodity market reality:

US dollar strength affects international revenue translation and competitiveness.

The strength of the US dollar (USD) creates a double-edged sword for Array Technologies' international business. A stronger USD makes their US-manufactured or US-dollar-priced products more expensive for foreign customers paying in local currencies like the Euro or Australian Dollar, hurting competitiveness. Also, when international sales denominated in foreign currencies are converted back to USD for financial reporting (translation), the reported revenue and earnings are lower.

The company's order book, which stood at $1.9 billion as of Q3 2025, is overwhelmingly domestic, with over 95% coming from the US. This heavy domestic focus insulates the company from the worst of the currency translation risk, but it also highlights the challenge of expanding market share abroad. Management noted that the 2025 gross margin guidance was negatively affected by 'delayed international project commissioning pushing out high margin software revenues.' This suggests that global economic uncertainty, compounded by currency effects, is causing overseas customers to pause or delay projects.

Inflationary pressures increase labor and logistics costs for installations.

Persistent inflation is not just a commodity problem; it's driving up the non-material costs of solar project deployment. Array Technologies' customers are absorbing higher costs for labor, transportation, and logistics, which ultimately impacts the total system cost and, potentially, demand for trackers.

The company's 2025 guidance explicitly cites 'inflationary pressures impacting both inventory' as a factor constraining the adjusted gross margin. On the installation side, the median system price for large-scale, utility-owned PV systems in the US reached $1.51/Wac in 2024, a steady increase of about $0.1/W since 2018. A large part of that increase is due to rising labor and logistics costs, plus, higher utility costs for US-based manufacturing.

What this estimate hides is the regional variation in labor costs. The utility-scale solar sector is experiencing a massive build-out, requiring specialized construction labor, which creates upward wage pressure in key markets like Texas and California. This makes the total installed cost of a solar farm higher, even if the tracker price itself remains stable.

Array Technologies, Inc. (ARRY) - PESTLE Analysis: Social factors

You are operating in a market with a clear social mandate: the public wants clean energy, and they want it now. But that strong demand is running headlong into two major friction points for Array Technologies, Inc. (ARRY): an acute shortage of skilled labor to install your trackers and rising local opposition to where the utility-scale projects are sited. The third factor, supply chain ethics, is no longer a soft compliance issue; it's a hard requirement driven by US law and customer mandates that directly impacts your ability to import components.

Public demand for clean energy solutions remains high, driving long-term investment.

The social push for decarbonization is the single greatest tailwind for Array Technologies, Inc. and the entire solar sector. It's not just talk; it's translating to massive capacity additions. Through September 2025, renewables dominated US capacity growth, accounting for 93% of all new additions, with solar and storage making up 83% of that total. Global solar installations reached nearly 600 GW in 2024, and the most realistic scenario projects a 10% increase to 655 GW in 2025. This relentless demand, especially from data centers and large corporations, is a clear signal of long-term investment viability.

Here's the quick math: Corporate Power Purchase Agreements (PPAs) for clean power set a record of 28 GW in 2024, up 26% from 2022, with tech companies driving 84% of that deal activity. Your customers-the utility-scale developers-have a huge, defintely funded pipeline to execute.

Labor shortages in skilled solar installation and engineering roles persist.

The biggest near-term risk to capitalizing on that demand is the sheer lack of skilled hands to install the projects. The US solar workforce is under immense pressure in 2025 to meet accelerated timelines, particularly for utility-scale projects that use Array Technologies, Inc.'s products. The industry needs approximately 355,000 workers by 2026 to support the projected installation volume. Current hiring trends, however, suggest the industry will only reach 302,000 workers, leaving a critical gap of 53,000 positions.

The shortage is most acute in mid-level technical roles:

• Electrical technicians (high-voltage systems).
• Commissioning engineers (system start-up).
• Quality control specialists (site inspection).
• Project managers (complex regulatory compliance).

This labor gap forces installation costs up and extends project timelines, which directly impacts your customers' profitability and their future purchasing decisions. The US solar workforce only grew by 3.5% in 2023, which is not nearly enough to keep pace with the demand.

Local community opposition to large-scale solar farms (NIMBYism) slows permitting.

Local community opposition, or 'Not in My Backyard' (NIMBYism), is a significant bottleneck that slows the entire development pipeline where Array Technologies, Inc. sells its trackers. Community opposition is now a leading cause of large-scale solar project delays and cancellations. This opposition is often rooted in concerns about landscape aesthetics, perceived impact on property values, and misinformation about environmental effects.

The regulatory fallout is clear:

• Local bans on renewable energy projects increased by 16% in the last year.
• State bans on renewable energy projects saw a sharp 111% increase.
• Contested projects-those facing significant community pushback-rose by 29%.

While some research suggests that residents living near existing solar farms don't oppose them, the key takeaway is that local perceptions of quality of life and community values are a much bigger driver of project support than simple distance. Developers must now invest heavily in community engagement and local economic benefits to get permits, which adds time and cost to every project.

Growing focus on supply chain ethics and forced labor standards by customers.

Ethical sourcing is a non-negotiable requirement for large utility and corporate customers in 2025, primarily due to the Uyghur Forced Labor Prevention Act (UFLPA). This US law places a legal prohibition on importing goods suspected of having inputs from the Xinjiang region of China.

The industry's response has been to standardize compliance, which is a direct requirement for all suppliers like Array Technologies, Inc. The Solar Energy Industries Association (SEIA) and the American National Standards Institute (ANSI) approved the new ANSI/SEIA 101 standard in October 2025. This standard provides a clear rubric for manufacturers and importers to trace product origins from raw materials to finished goods, specifically to help companies comply with UFLPA traceability requirements.

This is a major operational factor for Array Technologies, Inc. and its customers:

You must ensure your supply chain is not only cost-effective but provably clean, or you risk your customers' entire projects being delayed or having their modules detained by US Customs.

Next Step: Operations: Map all Tier 1 and Tier 2 component suppliers against the ANSI/SEIA 101 standard and UFLPA risk areas by the end of Q4 2025.

Array Technologies, Inc. (ARRY) - PESTLE Analysis: Technological factors

Continuous innovation in high-efficiency, single-axis solar tracker design is key.

Array Technologies, Inc. must continuously push the envelope on hardware design to maintain its competitive edge in the utility-scale solar tracker market. The company's focus for 2025 has been on enhancing resilience and optimizing electrical architecture to drive down the Levelized Cost of Energy (LCoE) for customers. One key advancement is the 2,000-volt (2kV) compatibility for both the DuraTrack and OmniTrack systems, a standard verified by Intertek.

This 2kV compatibility is a major design win because it allows for smaller conductors, reducing material costs and electrical losses across the project site. Plus, their patented passive wind stow technology is a massive differentiator, preserving 99.95% of energy on average during high-wind events, which is about 4.3% better than what you see from active systems. That resilience is critical for securing financing (bankability) on large, multi-year projects.

Increased R&D focus on software and controls for grid optimization and monitoring.

The real value-add in solar trackers has shifted from pure steel mechanics to intelligent software and controls, turning a physical asset into a smart, grid-responsive one. Array Technologies, Inc. recognizes this, with new products like OmniTrack, SkyLink, and Hail XP already accounting for nearly 40% of the company's $1.9 billion order book as of September 30, 2025.

The company's Smart Track software platform currently optimizes performance for over 5 GW of solar capacity globally, using machine learning to adjust panel angles for things like diffuse light and snow shedding. SkyLink, their new wireless, string-powered DC control system, simplifies installation and improves data flow, which is exactly what developers need to manage complex utility-scale sites.

Here's the quick math on their investment: while a specific R&D expense figure for 2025 isn't explicitly broken out in the full-year guidance, the company is projecting capital expenditures of approximately $20 million, which is mostly tied to the new Albuquerque manufacturing facility and ongoing product development. That physical investment supports the future technological pipeline.

Competitors are quickly closing the gap in tracker technology and cost structure.

The market is a two-horse race, and the second-place player, Array Technologies, Inc., is constantly battling the market leader, Nextracker. Nextracker is often cited for superior financial performance and innovation, but Array Technologies, Inc. is leveraging its own innovations and strategic moves to fight back. The competition is fierce and focuses on a few core areas:

• Cost-Reduction: Innovations like the 2kV system and long-row architecture are direct plays to lower the Levelized Cost of Energy (LCoE).

• Supply Chain: The push to deliver 100% domestic content trackers is a technological and strategic move to help US customers qualify for the maximum Inflation Reduction Act (IRA) tax credits.

• Extreme Weather: Competitors are launching similar hail and wind defense features, making Array Technologies, Inc.'s Hail XP and passive stow technology a necessary baseline, not just a bonus.

The full-year 2025 revenue guidance of $1.25 billion to $1.28 billion and Adjusted EBITDA of $185 million to $195 million shows Array Technologies, Inc. is executing well, but the competitive pressure is a permanent reality.

Integration of battery energy storage systems (BESS) with tracker controls is critical.

The future of utility-scale solar is hybrid-solar-plus-storage-and integrating the tracker's controls with a Battery Energy Storage System (BESS) is the next frontier for optimization. This allows for smarter charging and discharging based on grid needs, not just sun position. To be fair, Array Technologies, Inc. is playing the long game here; a dedicated, integrated solution is not a 2025 product.

Instead, the company is focused on foundational capability first, which is why the acquisition of APA Solar for foundations and fixed-tilt systems was completed in Q3 2025. Management has stated that product co-development for new solutions, which will include this deeper integration capability, is expected to launch in the second half of 2026. What this estimate hides is the risk that competitors like Nextracker, who are also heavily invested in this area, could launch a superior, integrated BESS-tracker control solution sooner, putting Array Technologies, Inc. a defintely a step behind in the near-term technology race.

Array Technologies, Inc. (ARRY) - PESTLE Analysis: Legal factors

The legal landscape for Array Technologies, Inc. is defined by a complex web of federal incentives, particularly the Inflation Reduction Act (IRA), and the persistent risk of intellectual property disputes inherent to a highly competitive technology sector. For 2025, the company's proactive compliance with the IRA is a significant competitive advantage, but the regulatory environment for permitting and technical standards remains a constant source of operational risk.

Compliance with IRA domestic content and prevailing wage requirements is complex but mandatory.

The Inflation Reduction Act (IRA) is the single most important legal driver for Array Technologies' domestic business in 2025. The company has successfully navigated the complexity of the domestic content and prevailing wage rules to secure a critical market position. Specifically, Array Technologies is now able to offer customers quotes for its 100% domestic content trackers, which qualify for the maximum tax incentives under the U.S. Treasury's Notice 2025-08 (Table I).

This capability is a direct response to the IRA's incentive structure, which provides a bonus credit that can boost the overall tax benefit. For projects utilizing the 100% domestic content components, the maximum Assigned Cost Percentage (ACP) is 28.7%. This is a huge financial lever for developers. Plus, the company's full-year 2025 guidance explicitly includes benefits from the Section 45X Advanced Manufacturing Production Credit for its domestic manufacturing of torque tubes and structural fasteners. This credit helped drive the company's gross margin to 35.4% in Q3 2024, showing the immediate financial impact of regulatory alignment.

Here's the quick math: Securing the domestic content bonus is crucial as the foreign assistance limits for projects starting construction tighten, rising from 40% in 2026. Array Technologies' domestic order book reflects this trend, accounting for over 95% of its total executed contracts and awarded orders of $1.9 billion as of September 30, 2025 (excluding the APA acquisition).

Intellectual property (IP) litigation risk in the competitive solar tracker market is ongoing.

In a technology-driven sector like solar tracking, intellectual property (IP) litigation is a defintely ongoing risk. While there are no widely reported 2025 IP infringement lawsuits against Array Technologies related to their tracker technology, the competitive pressure from rivals like Nextracker and international players keeps the threat high. Protecting proprietary designs, like the company's DuraTrack and OmniTrack systems, requires continuous legal vigilance and investment.

The company's financial disclosures for 2025 show the constant cost of managing legal risk. For the nine months ended September 30, 2025, Array Technologies reported $1.232 million in 'Certain legal expenses'. This amount is for non-ordinary course matters, including the appeal of a previously dismissed securities litigation and a regional tax dispute. This concrete expense shows that litigation risk-even outside of core IP-is a material factor in the company's adjusted financial results. Any new, complex IP case could easily multiply this cost.

Evolving state and federal land-use and environmental permitting regulations.

Evolving land-use and environmental permitting regulations pose a significant timeline risk for utility-scale solar projects, which directly impacts Array Technologies' sales pipeline. While federal efforts in 2025, such as the 'Accelerating Federal Permitting of Data Center Infrastructure' Executive Order (July 2025), aim to expedite some energy infrastructure, they specifically exclude non-dispatchable solar and wind projects. This means solar developers must still navigate the traditional, often lengthy, National Environmental Policy Act (NEPA) and state-level reviews.

For example, in California, a key solar market, 2025 efforts to reform the California Environmental Quality Act (CEQA) to 'slash red tape' have faced setbacks, with some major reform bills effectively dying. Permitting delays increase project costs and push out revenue recognition. To mitigate this risk, Array Technologies is aligning with frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD), showing a commitment to proactive environmental management that can smooth the permitting process with developers and local authorities.

Stricter product safety and grid interconnection standards for utility-scale projects.

The industry's shift toward higher-voltage systems is driving stricter product safety and grid interconnection standards, which Array Technologies is meeting head-on. The move from 1,500-volt (1.5kV) to 2,000-volt (2kV) systems is a major technical transition, designed to reduce electrical losses and lower material costs across a project.

In September 2025, Array Technologies announced that its flagship DuraTrack and OmniTrack systems were verified by Intertek as compatible with 2kV solar projects without requiring modifications. This compliance is critical as it meets the key industry standards:

• UL 3703: The current standard for solar trackers.
• UL 2703: The standard for mounting systems.

This verification provides developers with the confidence that Array Technologies' products are ready for next-generation utility-scale architectures, reducing their own project risk and accelerating their path to grid interconnection. The company also maintains its ISO 9001:2015 certification, which is the international standard for quality management systems, further demonstrating its commitment to product reliability and safety.

Next step: Review your project pipeline and flag all domestic projects that are not yet contracted with a 100% domestic content tracker to quantify the lost tax credit opportunity.

Array Technologies, Inc. (ARRY) - PESTLE Analysis: Environmental factors

The environmental factor is no longer a simple compliance check; it is a core driver of Array Technologies' product development and supply chain strategy, directly impacting customer bankability and your total addressable market. The biggest near-term risk is the Scope 3 embodied carbon in materials, while the greatest opportunity lies in selling higher-margin, extreme-weather-resilient trackers.

Pressure to reduce the embodied carbon in steel and aluminum components.

Honestly, the vast majority of Array Technologies' environmental impact is outside its direct control, sitting squarely in the supply chain. Here's the quick math: Array Technologies' Scope 3 emissions-emissions from its value chain, including purchased goods-account for a massive 99.9% of its overall carbon footprint. Specifically, Purchased Goods and Services and Upstream Transportation and Distribution make up over 97% of those Scope 3 greenhouse gas emissions. That means the carbon embedded in the steel and aluminum used for the trackers is the real environmental liability.

To mitigate this, Array Technologies has a strategic partnership with Nucor, the largest recycler of steel in the United States, to source 'low-carbon American steel' and 'green steel.' This is a critical move, as it not only lowers the embedded carbon and water impacts of their sourcing but also helps customers qualify for the Inflation Reduction Act's domestic content benefits. In manufacturing, they collect aluminum shavings to form condensed pucks for more efficient recycling.

The company is finalizing the modeling for a Science-Based Target (SBTi) to formalize a reduction pathway, a necessary step for attracting institutional capital that mandates verifiable climate action. You need to see this SBTi submission completed; it's a non-negotiable for future-proofing the business.

Increased focus on end-of-life solar panel and tracker recycling programs.

The utility-scale solar industry is still relatively young, so the end-of-life challenge for trackers is an emerging issue, not a current crisis. Array Technologies' tracker systems are designed for a 30-year lifecycle, and to date, customers have not retired any sites, so there is no robust real-world data on the true recyclability rates of their products. Still, the focus is starting now.

The company is committed to using materials that are 'highly recyclable at the end of their useful life,' preferring recycled aluminum or recycled steel whenever possible. They provide customers with guidance on proper system disposal in their installation manuals. This is a long-term strategic play, not an immediate revenue driver, but it will become a major regulatory and public relations issue by the 2030s. The current focus is on material choice to make future decommissioning easier.

Climate change-driven extreme weather events (e.g., high winds) demand more robust product design.

Extreme weather is now a financial risk, not just an engineering one. Insurers and project financiers are demanding greater resilience, which translates directly into higher-value orders for Array Technologies. The company has made this a core product strategy in 2025, recognizing that resilience is now a baseline requirement for bankability.

They launched the DuraTrack Hail XP™ in May 2025, a tracker specifically engineered to withstand severe hail and wind. A significant indicator of this trend is that over 35% of their current order book is for recently launched, higher-value products targeting challenging terrains and extreme weather concerns. This product innovation is directly supporting margin expansion.

The move to a new 77-degree stow angle product for sites with extreme hail exposure-up from the proven 52-degree angle-is a concrete example of this design evolution. Array Technologies' patented passive wind stow technology, which mechanically moves rows to a safe position without relying on sensors, provides a critical layer of protection during high-wind events, lowering the risk profile for asset owners.

Water-use restrictions impact solar farm construction and maintenance in arid regions.

Water scarcity in the US Southwest-a prime location for utility-scale solar-is a growing constraint. Array Technologies has recognized this by endorsing the UN Global Compact CEO water mandate, and their supplier standards include 'ensuring efficient use of water.'

In states like Arizona, a new 2025 law aims for a 20% reduction in urban water use, but the agricultural sector, which consumes nearly 70% of the state's water, is under intense pressure. This pressure is creating opportunities for solar on water-constrained land. For instance, in California, the Sustainable Groundwater Management Act (SGMA) is projected to cause between 500,000 and one million acres of agricultural land to be fallowed by 2040, making these sites prime candidates for utility-scale solar development as an alternative revenue source for landowners.

Solar projects themselves have minimal water use during operation, but construction and dust mitigation can be water-intensive. The key is that solar is seen as a productive alternative use for land that can no longer sustain water-intensive farming, which is a major long-term growth driver for the industry in arid regions. The company's focus on low-impact foundations and efficient construction methods helps minimize water usage during the build phase.

Here's the quick math: if a utility-scale project's financing costs jump by 150 basis points due to rates, the entire project's internal rate of return (IRR) can drop below the hurdle rate, and that means fewer orders for Array Technologies, defintely.

Next Step: Sales Team: Model the impact of a 6.0% long-term interest rate scenario on the Q1 2026 pipeline by the end of this week.