The primary and most crucial step towards creating a successful renewable energy project is utility feasibility studies. The essential purpose of such studies is to analyze and assess the technological and financial viability of an energy project. Such studies are conducted during the initial planning phases of such a project, and these studies help identify the possible challenges and roadblocks.
The feasibility study helps determine if an energy project can be taken forward after it gets the green light during its initial planning phase. Several factors need to be considered when it comes to the feasibility of an energy project. In this article, we have discussed why utility feasibility studies are highly essential for any energy project. Read further to know more.
Factors Affecting Energy Projects
As already said, an energy project is influenced by multiple factors. Let us take a look at these factors to better understand the importance of feasibility studies for energy projects.
- Location of the project and how proximal it is to utilities,
- The local net metering laws
- The layout of the site of the energy project.
- The energy storage potential of the project.
- The approximate and overall cost.
The above points are highly essential to gain complete insight into an energy project’s finances. Not just that, feasibility studies also shed light upon other crucial components of an energy project which may include solar equipment compatibility, local regulations, interconnection challenges, requirements for permitting as well as solar radiation.
The Importance Of Feasibility Studies For Energy Projects
Feasibility reports are usually intended for business organizations, buildings, and landowners. The reports of the feasibility studies are used for grant applications as well. As a matter of fact, these studies and their reports are the first step in a project development process and determine if the project should be taken forward or not.
A feasibility study generally includes project site inspection, choosing the essential solar components, and also making an estimate of the primary electricity production. While this process is quite simple for residential systems, commercial, industrial, and other entities, it can be pretty extensive.
Coming to the importance of feasibility studies, the primary goal of conducting such a study is to minimize project risk and address all roadblocks and project issues as early on as possible. The sooner the challenges and problems are identified, the sooner they can be resolved, making for a smoother project development process.
Feasibility studies help identify the key concerns of an energy project. Several critical design constraints can be effectively resolved when the issues are identified through proper planning and strategy. Without an in-depth feasibility analysis, energy projects, like solar power system installations, will probably cost more or take more time to be completed. This can lay a negative impact on the reputation of the solar installation company.
Successful energy projects can help boost the brand image and also get positive publicity and reviews. This is why utility feasibility studies are essential in the initial project planning phases.
