Kevin Hostetler: And we’re increasing that, Donovan. Every single quarter, we’re increasing that. And — so you imagine an exploded bill of materials, Donovan. And what we have is the overall capacity and then percentage of that capacity that can today be turned on to qualify under domestic content as we understand it. So, that’s what we’re focused on. So, how do we get — and we’ve talked openly on our last call about our standard building materials today having between 70% and 75% domestic content and that’s having the ability with a small premium to get up to that 90% to 95% domestic content in the building material. And that’s what we’re really focused on the percent of that 32 gigawatt that we can get up to that, say, 95% domestic content place.
Donovan Schafer: Okay. And then kind of related to this, I was actually fascinated in opening remarks — prepared remarks, you made a comment about not having to puncture the torque tube to clamp on modules and that giving you flexibility. I never connected that dot, I had always just — assumed it was just the purlins, the ones that go perpendicular to the torque tube. That was the last piece and you had to figure out where you’re going to punch a hole there. But realizing you can also slide on the north-south dimension along the torque tube. That — as I understand it, that is enabled by having your unique octagonal cross-section and that’s something you couldn’t do with a circle. You can maybe do it with a square, but you couldn’t do it with a circle, a circular cross-section.
So, hadn’t made that connection. And then I saw it re-plus this year, PV Hardware’s tracker is actually doing an octagonal torque tube now. And yes, they’ve kind of followed your lead there and the FGCI — FGC Solar, their 1P design is hexagonal. But the same idea you’re coming up with some kind of a geometry that’s non-circular gives you some of the benefits of circularity with some more maybe bending us to it versus a square, but by giving you that ability to have a puncture less fixing to the torque tube. So, I guess are you seeing a trend with other competitors switching to that kind of a unique, let’s think of it as like a non-standard torque tube cross-section? And then back to the same question — back to that same idea of what I just asked, are there any issues from a capacity standpoint in the US, I mean, can any role forming operation, role form for an octagonal cross-section or does that get at all more complicated or limited?
Kevin Hostetler: I think on the first part, yes, we have taken note of several of the recent launches in the industry that look a lot closer to an Array than maybe they do someone else’s, right? So, that’s something we’re keeping a watchful eye on and certainly beyond the torque tube other elements of their design are starting to look a lot more like Array. So, it’s an interesting observation Donovan and something that we’re keenly observing and watching talking about internally on a regular basis. Relative to whether any tube — now, I mean, I think if you get the correct dies in place, you could roll it, whether it be octagonal, hexagonal, any of the above. So, I don’t think that’s really the big barrier at this point. It’s more in our proprietary clamping system, our rapid clamp system that allows you to build the infrastructure irrespective of knowing which panels you’re going to get.
We can design it from multiple panel options and then when you’re allowed to get in those panels at the end of the day, we’re able to provide a different clamp for that. Now, it’s not only in the panel availability, it extends beyond that in terms of being able to have sites with mixed panels, right? So, you imagine that as companies are going to be scrambling to get to their percentage of domestic content that they need on these sites, and they may have a limited availability over the next couple of years of made in US panels, you imagine a scenario where customers are going to say I’m going to start at this site and the majority of panels in the site may be for solar because I had a certain level of availability of those panels. However, once I get to my 40% domestic content, using more of those at this particular site may be diminishing return versus saving those for another site and then I can mix panels on that site.
Our infrastructure will allow you to do that differently than some others. I think that’s something that we’re seeing in the market of interest.
Operator: Thank you. And our next question comes from Colin Rusch with Oppenheimer. Please state your question.
Colin Rusch: Thanks so much guys. Could you talk about how many of your customers are fully qualified with OmniTrack solution at this point? Are you — is it the full complement of customers or is it a sub-segment of it at this point?
Erica Brinker: We’re rolling OmniTrack out this year in select areas to make sure that it’s properly installed by our partners and obviously looking at the ideal topography in which to install it. But certainly any of our customers would be welcome to use it with the correct requirements.
Colin Rusch: Okay. And then secondly, as you guys look at having increasing customer intimacy with some of these new designs. Are there other opportunities for incremental engineering improvements that on — around footings or other areas where you can reduce labor out in the field and have it more in the factory setting in the next couple of years?
Kevin Hostetler: Yes. Colin, I think part of what you’re seeing in that OpEx spend next year is kind of when I came in, I made a commitment to our engineering organization and our CTO and effectively said, look, one of the best uses of my capital is in new product development. And I looked at Erica’s product management team and Terry’s engineering team and made a commitment that if they bring forward really robust new product development initiatives, I will fund them, right? And that’s really what you see in that OpEx increase. So, we’ve increased our engineering spend this year, certainly over 35% and that’s part of what you see in the OpEx line. And that’s really all about there’s a large number of products that we think we could bring to bear to the market that are really focused on a few areas.
Obviously, you’ve seen us disclose a lot more of what we’re doing on the software side of things and there’s more to come beyond this. A lot more areas where we can ease installation and reduce installation costs. So, I think this is a year of what I would say a rapid succession of product launches of a lot of what I would say maybe small to midsize new product development initiatives, but I think we’re going to be really welcome by our customers as we go forward throughout the year.
Colin Rusch: That’s super helpful. Thanks guys.
Kevin Hostetler: You got it.
Operator: Our next question comes from Jeff Osborne with TD Cowen. Please state your question.
