Chroma Energy Group – United States

August 29, 2024

Chroma Energy Group

Unlocking the Benefits of Solar

Contributing to the renewable energy sector with innovative solar solutions and strategic partnerships

Chroma Energy Group delivers tailored energy solutions across the U.S., specializing in engineering, procurement, and construction (EPC) services for solar energy projects. With a focus on utility-scale solar, microgrids, and EV charging stations, Chroma Energy combines innovation with expertise. The company’s North American Board of Certified Energy Practitioners® (NABCEP®)-certified team ensures high standards in design and installation, catering to utilities, governments, and industrial clients. By integrating cutting-edge technology and sustainable practices, Chroma Energy empowers clients to achieve their energy goals efficiently and effectively.

Jacob Duncan, VP of Business Development at Chroma Energy Group, highlights the company’s operational strengths. “We’re a turnkey EPC specializing specifically in solar projects,” he states, emphasizing the company’s focus on utility and commercial industrial projects. Unlike many competitors, Chroma Energy does not work in the residential sector. This clear delineation allows them to concentrate on large-scale distributed generation systems.

Although officially operating for just over a year, Chroma Energy has a significant legacy through the acquisition of a business with 14 years of experience. This merger brings the company’s combined installed solar capacity to over 120 MW, demonstrating a robust presence in the market. Duncan adds, “We do some aspects of EV chargers and similar technologies, but our primary focus remains solar for distributed generation and commercial industrial needs.”

Regarding the practicalities of solar energy as a renewable source, Jacob Parker, Vice President of Preconstruction Services, outlines the critical factors in evaluating potential projects. “When we design a project for a commercial and industrial (C&I) customer, we consider various drivers: renewable energy goals, sustainability targets, and ROI,” he explains. Companies may seek solar solutions to meet corporate sustainability goals or to ensure a reliable energy supply during utility outages, often through a combination of solar and battery storage.

Building a Skilled Workforce

Ed Rottmann, Owner

Chroma Energy Group’s rapid ascent in the energy sector is powered by a meticulously structured team and a blend of seasoned expertise and emerging talent. Duncan sheds light on the company’s internal structure.

“Our company primarily comprises executive-level, office staff, and support personnel. We have project managers, site supervisors, and foremen or foreman-in-training.” This hierarchical setup ensures that every project is supervised by experienced professionals, particularly those with NABCEP® certification, a recognized standard in the solar industry. Duncan emphasizes, “Our site supers are NABCEP®-certified installers, and those under them are training to step into supervisory roles eventually.”

The strategic approach doesn’t end with internal staffing. Duncan highlights how Chroma Energy supplements its team with local labor on a project-by-project basis. This practice not only supports local economies but also provides flexibility and scalability. “We provide project oversight and management, then pick up local labor from temp companies wherever we’re working,” he says, noting the company’s operational reach across the eastern U.S.

Regarding project capacity, Chroma Energy doesn’t set strict limits on the number of jobs. Duncan articulates, “We have revenue goals and growth targets as a company rather than a specific number of projects we aim to complete each year.” This flexible approach allows Chroma Energy to adapt to varying project scales and demands.

Parker elaborates on the nature and scale of projects. “On the distributed generation side, these are large ground mount projects, ranging from 10 to 100 acres. These turnkey installations can cost anywhere from half a million to over five million dollars per project,” he explains. These substantial projects showcase Chroma Energy’s capability to handle extensive installations with significant financial investments.

Conversely, the C&I projects, though generally smaller, are handled with equal expertise. “We develop these C&I projects in-house from the ground up, covering all pre-construction and engineering needs,” Parker notes. The scale of these projects varies widely, with some as small as ten kilowatts, like a recent $150,000 installation in downtown Knoxville. “When we say our project sizes vary widely, we mean it,” Parker affirms, illustrating the broad spectrum of Chroma Energy’s capabilities.

Setting Themselves Apart

Chroma Energy Group’s distinction in the market lies in its operational philosophy and execution. Its quality and in-house expertise significantly depart from the typical industry practice of subcontracting large portions of work.

Duncan articulates, “A typical EPC subs out a lot of work, but at Chroma, we self-perform about 95% of our installs. Our people do the installs, and we pride ourselves on the quality and attention to detail in that work.” This approach ensures consistent quality and allows for direct oversight and control over every aspect of the project. He adds, “We’re boots on the ground, managing the job to our standards whether we’re using temporary or union labor.”

However, flexibility remains a part of the company’s strategy. “There are occasions where we might be a subcontractor for a developer or another EPC, but we typically manage and perform nearly all the work ourselves when we’re the full scope EPC,” Duncan explains. This ability to adapt to various roles within a project highlights the company’s versatility and breadth of expertise.

Parker addresses the potential challenge of labor shortages, a prevalent issue in many industries. “Our project management style helps curb workforce challenges,” he says. Solar installation requires specialized skills, and Chroma ensures its team has the knowledge to handle any project. “We provide on-staff personnel who know what they need to know for any individual project. We haven’t noticed any increased difficulty when sourcing local labor for more laborious tasks,” Parker notes.

Embracing Electrification

Jacob Parker, VP of Preconstruction Services

The shift towards electrification is transforming the energy sector, providing new opportunities and challenges. This trend significantly bolsters the case for solar energy for Chroma Energy Group, integrating seamlessly with broader electrification efforts.

Parker explains, “The push towards electric is helping solar. The current economics and available incentives favor our approach.” He notes that businesses looking to reduce utility costs find solar a viable and often necessary solution, contrasting it with other sources like natural gas or diesel generators, which face usage restrictions for primary power.

On a larger scale, Parker highlights the competitive edge solar holds over traditional energy sources like coal and nuclear. “Building a 100 MW solar farm takes a year or two, compared to 10 to 15 years for a nuclear plant. The quick turnaround and available technology give solar a significant advantage,” he elaborates. Rapid deployability is crucial for regions like the Tennessee Valley Authority (TVA), where increasing energy capacity and reducing energy deficits are pressing concerns.

The synergy between solar power and electric vehicles (EVs) further strengthens the argument for solar. Parker illustrates this with a real-world example: “Knoxville recently electrified its city buses. The next step is to install solar canopies at the bus station, paired with battery storage. During the day, the solar panels generate energy stored in batteries, charging the electric buses at night.” Such a model demonstrates the practical and efficient pairing of solar and EVs, which can be replicated in various settings.

Educating and Engaging the Market

In an industry where knowledge is power, Chroma Energy Group significantly emphasizes education and marketing to drive awareness and adoption of solar energy. Parker elaborates on the company’s customer-focused educational outreach.

“The big thing is education. As we reach out to potential C&I customers, some have renewable energy goals; some do not. It’s really on a case-by-case basis that we approach them.” Many businesses are unfamiliar with the intricacies of solar energy but are interested in the potential return on investment (ROI). Chroma Energy walks these clients through the various incentives available and illustrates how solar installations can significantly reduce their electric bills. “We explain the savings on their electric bill and guide them through the different incentives available,” Parker notes, adding that they also help clients understand how to market their green initiatives to their customers.

Parker also mentions the tangible educational tools they provide. “We have customers looking at systems we’ve installed and putting up educational displays in their offices,” he explains. These displays offer real-time data on the solar array’s performance, demonstrating the carbon-neutral energy produced and the system’s environmental impact. “A partner we work with monitors the solar array and provides real-time data for these customers, helping educate anyone visiting their place of business,” Parker adds, emphasizing the importance of transparency and ongoing education.

Chroma Energy’s education extends beyond commercial clients. “We’ve been working a lot with the local school system here in Knox County,” Parker reveals. The company has been involved in both maintenance and educational initiatives. For example, they are assisting the school system in restoring about seven megawatts of malfunctioning solar capacity. Additionally, Parker highlights the company’s engagement with local STEM academies. “We’ve been giving talks to students about potential careers in renewable energy and discussing current trends in the field,” he says. These voluntary sessions offer students insights into the renewable energy sector, potentially inspiring the next generation of industry professionals.

Strengthening Partnerships and Prioritizing Growth

Jacob Duncan, VP of Business Development

Strategic partnerships and clear priorities support Chroma Energy Group’s forward momentum. Duncan highlights the importance of collaborating with HardHat, a temporary labor service.

“We use HardHat a lot. They have an apprenticeship program specific to renewable energy and solar projects, which has been fantastic to work with across multiple states,” he states. This relationship provides skilled labor and aligns with the necessary apprenticeship programs for larger projects.

Another critical partnership is with City Electric Supply (CES). Duncan notes, “CES is our number one supplier for materials. Their renewable division is outstanding—they’re knowledgeable, respond quickly, and make our jobs smoother and our lives easier.” These collaborations ensure that Chroma Energy has the resources and expertise to maintain high standards and efficient operations.

As Chroma Energy looks ahead, its strategic priorities are clear. Parker explains the significance of the Tennessee Valley Authority’s (TVA) Flexibility 2.0 program. “It allows local power providers within TVA’s region to produce up to 5% of their own electric needs, based on renewables, primarily solar. Our top priority over the next 18 months is to stay engaged with these local power providers, ensuring we are involved and active in these conversations,” he says.

Duncan echoes this focus and emphasizes the goal to grow the local commercial and industrial market. “We aim to help businesses achieve their ESG goals or cost savings by offsetting peak demand charges. Conversations with local companies in the TVA region about these solutions are a significant part of our 18-month plan,” he adds. By engaging with local businesses, Chroma Energy can provide tailored solutions that address both environmental goals and economic benefits.

Furthermore, Duncan underscores the economic advantages of solar energy. “Solar is the cheapest per watt renewable energy available. Tax incentives, advancing technology, and increased availability have driven down the price per watt. It’s a great option to assist with power offset demand charges or achieve net zero goals,” he explains.

Chroma Energy Group’s strategic partnerships and focused priorities position it for continued growth and impact in the renewable energy sector. Its efforts to educate, innovate, and collaborate ensure it will remain a leader in delivering tailored energy solutions well into the future.