Conducting A Solar Energy Feasibility Study
- Sarah Lozanova
- Dec 21, 2024
- 6 min read
As the first essential step in creating a successful renewable energy project, a solar feasibility study examines if the array is financially and technologically viable. The solar power feasibility analysis determines if the renewable energy project gets the green light by identifying roadblocks in the beginning of the planning phase.
There are many essential factors to consider, such as location, proximity to utilities, net metering laws, site layout, energy storage potential, and cost, to name a few. It is vital to have a basic understanding of your project’s financing, interconnection challenges, solar equipment compatibility, local regulations, permitting requirements, and the solar radiation. These reports are usually intended for buildings, businesses, or landowners and are often used with grant applications. It is one of the first steps in the project development process.
What Is a Solar Feasibility Study?
A solar panel feasibility report or study assesses the viability and potential benefits of implementing a solar energy system in a specific location. It analyzes factors such as sunlight exposure, energy consumption patterns, available space for solar panels, and regulatory considerations.
Financial aspects, including upfront costs, potential energy bill savings, and return on investment, are evaluated. A solar feasibility report guides decision-makers by providing a comprehensive understanding of whether a solar panel installation aligns with the site's characteristics and economic goals, helping determine the feasibility and advisability of pursuing solar energy adoption.
Why Are Solar Feasibility Studies Important?
The goal is to limit project risk and address issues early on in the development process. When identified, many critical design constraints can be overcome effectively with planning. Without a thorough solar panel feasibility study, installations are more likely to go over budget or get stalled. Unfortunately, such issues can reflect poorly on a solar energy contractor or EPC.
Conversely, successful projects are an excellent way to gain positive publicity and reviews. These installations can help boost your reputation as a photovoltaic contractor and encourage word-of-mouth referrals.
What Goes Into A Solar Feasibility Report?
It entails conducting a site inspection (when necessary), selecting the preliminary solar components, and making basic electricity production estimates. For basic residential solar energy systems, this process can be relatively simple.
A solar feasibility analysis can be more involved and time-consuming for larger residential or more complex solar panel installations, especially when there are numerous solar design constraints and financing options. Below, we touch on the most common things to include in a solar feasibility report.
Solar Energy Project Background
Understanding the project context, such as the owner’s goals and desired outcomes, is crucial. These factors drive the preliminary design process and help inform decisions, like whether or not to add a solar battery bank to an installation.
Solar Site Selection
The site chosen for a solar project has significant implications for system performance, project viability, installation costs, and ongoing maintenance. A comprehensive solar feasibility study is essential to determine whether the location is suitable for the project. For ground-mounted solar systems, the topography is a key factor, as it may require site work that could affect the tilt angle of the PV panels and, in turn, the overall system performance.
A solar feasibility report also assesses the need for land clearing, which can add costs and environmental impact. Additionally, the site selection process helps identify which regulations will influence permitting fees, building codes, and utility interconnection requirements. Utilizing drones for site assessment can further enhance the process by providing precise aerial imagery and topographical data, enabling more accurate evaluations of potential solar sites.
Recommended Solar Energy Equipment
Solar power feasibility studies include recommendations on PV panels, racking systems, solar inverters, and battery storage equipment (when applicable). Site conditions often influence the options for a given solar power project.
For example, if a site has low roof load limits, you might install a solar racking system that evenly distributes the weight and wind load of the system. Using bifacial solar panels might improve solar power generation on white roofs. Inverter selection may vary depending on whether the system has solar batteries.
Environmental And Regulatory Considerations
Solar regulations vary depending on building codes and the Authority Having Jurisdiction (AHJ). Solar farms must comply with federal and state environmental policies, such as the National Environmental Policy Act (NEPA), the Clean Water Act, and the Endangered Species Act.
A comprehensive solar feasibility study is essential to assess environmental factors and regulatory requirements before proceeding with a solar project. For projects on capped landfills, the Environmental Protection Agency (EPA) will need to be involved. For solar installations on historical buildings, additional restrictions may apply to preserve the property's character, and the Landmarks Preservation Commission (LPC) may oversee compliance. In neighborhoods with a homeowners' association (HOA), HOA approval may be required.
A solar feasibility report can help identify the environmental impact and suggest strategies to mitigate any potential issues, such as planting drought-tolerant wildflowers to reduce irrigation needs and provide pollinator habitats. Additionally, some solar developers are using sheep grazing instead of gas-powered mowers to cut down on carbon emissions and operational costs.
Economic Analysis of Solar Projects
Conducting an economic analysis is essential for evaluating the financial viability of a solar installation and assessing its return on investment. Investors or project owners typically rely on this analysis to determine if a solar project is financially feasible. This process involves examining project costs, revenue potential from renewable energy generation, and long-term savings.
Key factors to consider include local, state, and federal financial incentives, such as the investment tax credit, bonus depreciation, and MACRS depreciation. Additional incentives or grants may be available, such as state clean energy rebates or the REAP grant for agricultural producers and small businesses in rural areas. A solar feasibility study and solar feasibility report can also provide insights into potential savings, especially for businesses that pay demand charges for energy use. If a Power Purchase Agreement (PPA) is part of the project, understanding its terms is crucial to assessing its impact on the overall economics of the solar installation.
Community Impact of Solar Installations
Solar photovoltaic installations do not happen in a vacuum. A commercial solar project may boost a company’s reputation by taking actions to mitigate climate change. Large-scale solar farms can have a bigger impact, both financially and environmentally. Such projects can increase tax revenue in a community and compensate landowners with lease payments. Many local governments and communities support reducing their reliance on fossil fuels and promoting energy efficiency.
Likewise, taking farmland out of production or destroying wildlife habitat may concern some communities. Some communities are also concerned about creating local jobs instead of bringing in out-of-state solar installers.
Land Suitability Evaluation in a Solar Farm Feasibility Study
In evaluating solar viability for a PV farm, a comprehensive analysis is conducted to assess topographical features, shading patterns, and soil conditions. The goal is to ensure that the chosen site offers optimal exposure to sunlight throughout the day, minimizing shading and maximizing energy production. Factors such as the slope of the land and its orientation are crucial considerations in determining the efficiency of solar panel installations, providing key insights into the overall feasibility of the solar farm project.
Conducting a solar farm feasibility study involves assessing various factors, including:
Sunlight Exposure:
Evaluate the site's solar irradiance and duration of sunlight to ensure sufficient energy production.
Land Suitability for Solar Farm:
Assess topography, soil conditions, and shading patterns to determine the feasibility of a solar panel installation.
Regulatory Compliance:
Examine local regulations and zoning requirements to ensure compliance with permitting and environmental standards.
Energy Consumption Patterns:
Analyze historical energy usage data to tailor the solar farm's capacity to meet demand effectively.
Economic Viability:
Consider upfront costs, potential revenue, and financial incentives to assess the project's economic feasibility, which is often critical for obtaining project financing.
Infrastructure Accessibility:
Evaluate the proximity to existing grid connections, ensuring ease of integration with the power infrastructure. When grid integration is difficult, the project costs increase, decreasing solar farm feasibility.
Consider climate factors like temperature and precipitation to project energy generation and system performance accurately.
Solar Technology Selection:
Solar feasibility studies commonly include selecting appropriate solar technologies, such as photovoltaic or concentrated solar power, based on site-specific conditions.
Environmental Impact:
Assess potential ecological impacts and implement sustainable and environmentally responsible solar farm development measures.
Community and Stakeholder Engagement:
Involve local communities and stakeholders to address concerns, garner support, and ensure positive social impact.
Grid Connection Capacity:
Check the local grid's capacity to accommodate the solar farm's energy output without overloading the system with utility interconnection.
Building codes, electrical codes, and zoning obstacles can make it difficult to proceed with certain projects. The GreenLancer team is skilled at overcoming permitting and solar engineering challenges. Sign up for GreenLancer to begin shopping for solar permitting, engineering, and interconnection services.
When Are Solar Feasibility Studies Not Necessary?
Most installations benefit from a solar feasibility analysis to ensure that the proposed project realizes the desired goals. The depth of the study varies by the project size, potential issues, and stakeholder demands. Even for an off-grid solar project, it’s helpful to determine if the proposed clean energy system will meet the renewable energy needs of the occupants, even if not performing a full analysis.
Kickstart Your Next Project With a Solar Energy Feasibility Study
A thorough and accurate solar feasibility study lays the foundation for a successful PV project. They are an excellent way for reputable companies to differentiate themselves by ensuring that all key stakeholders are well-informed and that critical design constraints have been identified.
The GreenLancer marketplace has a network of specialists skilled in conducting feasibility studies throughout the United States. Our network of vetted solar designers and licensed engineers can create permit-ready plan sets, engineering reviews, and interconnection applications. Learn more by completing the form below.
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