5 Steps To Assess The Feasibility Of A Solar Project

Site Review

The first step in determining if a ground mount solar installation makes sense for your property is to perform an extensive site evaluation. Will identify whether or not your physical location is a viable area for solar installation. Sunlight is a very important factor, walls or roofs should be unshaded all through the day and site/location if it is well suited for best use of solar panels. An Arizona project, for instance, would get more out of its 3,800 hours of annual sunshine than most projects elsewhere in the country. Financial Analysis Consider the financial feasibility This does Involve figure out the initial cost, potential tax incentives and return on investment (ROI). In California, this includes being able to take advantage of the Federal Solar Investment Tax Credit that gives a 26% tax credit on the installation costs. Ankle high projections might show a payback period of around 7 years and a decent net present value for a project. Technical Evaluation Touches upon considerations of engineering nature: what type of solar panels would be used and how we will link them to our existing electrical system. The New Jersey-based case study : In one of our previous posts where a manufacturing plant in New Jersey went with monocrystalline solar panels because of their high efficiency and quality which is what they need for all the clouds the state get. Compliance with environmental and regulatory requirements Solar projects need to comply with environmental regulations at the local and federal level. This includes getting the necessary permits and making sure that the project does not have any adverse effects on local animals. An environmental impact assessment (EIA) was ordered for a solar farm in Oregon to preserve salmon habitat upstream. Stakeholder Engagement Smooth project execution requires regular and effective communication with all the stakeholders - from local communities to government bodies and investors. In one successful case of engagement, various town hall meetings in Colorado helped build local support and facilitated smoother permitting. Always Inspecting and Adapting The same monitoring will be useful for performance optimization of the Solar installations after it is operational. This requires periodic up-keep and update in relevance of technology advancements. One solar plant in Texas, used intelligent monitoring systems - to help manage panel efficiency in real time and make sure they were on top of factors that might inhibit power output.

Energy Demand Analysis

It is essential to understand your organization’s current energy needs and forecast what they will be in the coming years. Documentation for a solar project for a small manufacturing company in Illinois showed that it was determined that the company used 500,000 kWh of energy per year. These projections assume that energy use will grow by 5% per year over the next decade. Peak Use Assessment Knowing when peak energy use occurs allows for more efficient design of load capacity. A hospital in Florida even conducted a peak use study where they found that their energy use spiked between 12pm and 6pm to meet the forced air demands of their air conditioning units. This led to a solution of a rooftop solar panel plus battery storage system that could handle the load efficiently. Comparison to Solar Output Capacity Look at the compatibility of your solar output graph with your energy demand graph. For a tech company in Silicon Valley, data indicated that solar output peaked at noon, which coincided with their internal operational peak time, so solar could be used. Effectiveness of Energy Efficiency Measures Evaluating the impact of potential energy efficiency measures before completing a solar project can help you get a better design and installation size. When a Seattle retail chain switched to LED lighting and more energy-efficient HVAC systems, they were able to reduce their total electricity needs by 20%, reducing the cost of the proposed solar solution from fully enabling them to go off the grid to just cutting it in half.

Technology Selection

Deciding on the correct solar panel technology The most important thing is to choose and install the correct solar panel technology. Low-light photovoltaic (PV) panels might be the choice for a community in Maine with short sun exposure. Each of these panels is capable of operating up to 10% more effectively in the cloudy compared to ordinary brands. Inverter Technology The right inverter type helps you get the most from your solar panels by converting the suns energy into usable electricity. In Texas, a large-scale solar farm went with string inverters due to their affordability and easier upkeep than central inverters perfect for such as massive operation that spans over 100 acres of land. Battery Storage Solutions By incorporating battery storage, a solar system can easily gain the ability to store excess power for use in non-production periods which within itself is a huge upgrade for the utility of a solar system alone. In California, a community solar project used lithium-iron-phosphate batteries as they can last up to 20 years and discharge more energy; crucial for the evening hours when demand is highest. Tracking Systems To get more sunlight, tracking systems were added to adjust the panels to face the sun in a commercial setup in Arizona. This technology increased the system output by up to 25%, making it ideal for areas with high solar insolation.

Economic Benefit Forecast

Calculating ROI Solar project or not, Return on Investment (ROI) is crucial only.Enqueue the form right handy A New York commercial building installed a 200 kW solar system which will save the consumer $40,000 yearly on energy costs. With an installed system price of $500,000, and a 26% federal tax rebate, the payback period for the project would be approximately 10 years. Impact on Property Values A solar installation often runs up the value of a home. A San Diego study also found that homes with solar panels sold for roughly 4.1% more than comparable homes without them. This means that for a $600,000 home, the added property value would be $24,600. Operational Cost Reductions The use of solar power vastly decreases the operational costs. One facility in Michigan now reports a 75% cut to their electricity bill thanks to going solar, saving $120,000/year - and that's straight bottom-line profit [&] cash flow for the financial statement folks. Tax Incentives and Rebates The availability of tax incentives can have a substantial impact on the economic viability of solar projects. When combined with state-specific incentives, businesses in Colorado could cut their upfront costs by as much as 45% through these federal tax credits - significantly sweetening the economics of switching to solar power.

Environmental Impact Assessment

Local Wildlife and Habitat Analysis Careful consideration of local wildlife and habitat is vital to ensuring solar projects will not interfere with indigenous species. There is a proposed 500-acre solar farm in Virginia, and the surveying of potential land use provided a level of detail to determine that an endangered bird species was located on site. The design was changed to add a buffer zone around nesting regions, shedding environmental disturbances of significant severity. Estimations of Carbon Footprint Reduction It is vital to evaluate the environmental effects by measuring the amount of emitted carbon which got reduced. For its part, a solar project at Oregon added research to the economics of the change , saying that taking out old power would lead to 2,000 less tons of CO2 emissions per year or the equalsivalent of removing 400 cars from driving I-5 annually. Ecological Balance Land Use Assessment of land-use impacts and the importance of biodiversity conservation is very critical. A project on non-arable land involving thousands of acres that was developed in Nevada showed that utility-scale solar development can be done alongside the environment without taking up fertile soils, promoting sustainable land use. Environmental Law Compliance Required environmental regulations must also be complied with or the project will not be approved. Similarly, a solar project in California was exhaustively reviewed to ensure compliance with the California Environmental Quality Act (CEQA), meaning every foreseeable impact had to be mitigated before it could proceed.