Conducting A Solar Energy Feasibility Study
- Sarah Lozanova
- 1 day ago
- 7 min read
A solar feasibility study is the foundation for determining whether a solar project makes sense technically, financially, and from a permitting standpoint. From residential rooftops to commercial systems and utility-scale sites, a thorough solar panel feasibility study helps installers and developers evaluate risk, cost, and performance before moving into detailed design or procurement. Starting with a feasibility study early helps avoid costly redesigns, interconnection delays, and missed incentive opportunities.
A comprehensive solar feasibility report analyzes solar resource potential, site constraints, utility interconnection requirements, and available incentives, while also modeling energy production and system economics. For larger projects, a solar farm feasibility study may also assess land use, environmental limitations, energy storage options, financing structures, and long-term performance assumptions to confirm the project is viable before significant capital is committed.
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What Is a Solar Feasibility Study?
A solar feasibility study or solar panel feasibility report evaluates whether a solar energy system is technically sound and financially viable for a specific site. It reviews core factors such as solar irradiance, available roof or land area, shading, orientation, load profile, interconnection constraints, and local code requirements to determine whether the system can be efficiently designed and permitted.
A solar power plant feasibility study also includes financial modeling, accounting for installation costs, incentives, projected production, payback period, and ROI. Whether the project is rooftop, commercial, or utility-scale, a well-prepared feasibility study for solar power plant projects helps teams decide if the site supports long-term performance and whether moving forward with development makes sense.
Why Are Solar Feasibility Studies Important?
Conducting a solar feasibility study early in project planning reduces risk and sets clearer expectations for both installers and clients. A well-prepared solar feasibility report helps surface constraints before they turn into delays or redesigns.
Key reasons a solar panel feasibility study matters:
Identify site and regulatory risks early - Interconnection limits, zoning rules, roof or land constraints, and AHJ requirements can be addressed upfront through smart design adjustments.
Avoid budget and schedule overruns - Without a proper solar feasibility analysis, projects face higher risk of permitting delays, change orders, and unexpected engineering costs.
Improve project bankability and client confidence - A clear solar farm feasibility study or rooftop feasibility assessment supports accurate proposals, realistic timelines, and cleaner handoffs to engineering and construction.
On the upside, projects backed by a strong solar feasibility study tend to move faster, install more smoothly, and deliver better outcomes. Consistent feasibility reporting helps solar contractors protect margins, build trust, and earn repeat business through reliable project execution.
What Goes Into A Solar Feasibility Report?
A comprehensive solar feasibility study evaluates whether a proposed system is technically viable, financially sound, and practical to build at a specific site. For a straightforward solar panel feasibility study on a residential rooftop, the process may be relatively simple. Larger homes, commercial buildings, and ground-mounted arrays require a more detailed solar site feasibility analysis to address layout, permitting, and interconnection constraints.
When planning a larger or utility-scale project, a solar power plant feasibility study is often more time-intensive and technical. These reports evaluate numerous aspects, including grid interconnection, zoning limitations, and design trade-offs. Below are the most common components included in a solar feasibility report.
Solar Energy Project Background
Understanding the project’s purpose and objectives is key. Whether the goal is energy savings, reducing carbon emissions, or earning income from energy production, this context shapes the solar feasibility analysis. For example, identifying whether battery storage is desired early in the process informs system design and equipment selection.
Solar Site Selection
Site selection is foundational to the feasibility of solar energy at a given location. Factors like solar access, shading, proximity to the utility grid, and land topography can significantly impact system performance and installation costs. A detailed solar farm feasibility study also considers whether the site requires land clearing, grading, or erosion control.
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
A solar feasibility study includes preliminary recommendations for photovoltaic (PV) modules, inverters, racking systems, and energy storage. These recommendations are shaped by site-specific constraints such as roof load limits, structural integrity, and energy usage patterns.
For example, bifacial panels may be ideal for highly reflective surfaces, and ballasted racking systems might be suggested for flat rooftops with structural limitations. Inverter choices also vary depending on whether the project includes energy storage or requires smart inverter functionality.
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
A central part of any solar panel feasibility study is the financial assessment. This includes a detailed review of installation costs, long-term savings, and available incentives. A robust solar feasibility analysis will take into account the investment tax credit (ITC), bonus depreciation, MACRS, state-level rebates, and USDA REAP grants for eligible businesses and farms.
In commercial projects, the analysis may also explore time-of-use savings, demand charge reductions, and the terms of Power Purchase Agreements (PPAs) or third-party ownership models. This financial modeling helps stakeholders determine whether the project is a sound investment and estimate the payback period.
Community Impact of Solar Installations
A well-rounded solar feasibility study also considers the social and economic effects of the project. Solar farm feasibility studies often include analysis of tax benefits for local governments, lease revenue for landowners, and job creation potential. These installations can help communities meet clean energy goals and increase energy resilience.
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
Land suitability is a core component of any solar farm feasibility study and directly impacts long-term system performance, permitting success, and project economics. A detailed solar feasibility analysis evaluates whether a site can support efficient PV deployment based on physical, regulatory, and infrastructure constraints. Poor site selection can limit energy yield, increase construction costs, or prevent interconnection approval altogether.
During a solar feasibility study, developers and engineers assess the following factors to determine overall solar viability:
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 connects you with a nationwide network of solar designers and licensed engineers. We provide fast, accurate permit-ready plan sets and engineering reviews to keep your solar projects moving forward.
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