This assessment explores if installing a solar energy system in a particular location is practical and financially viable. It examines factors including available sunlight, site conditions, solar PV system costs, and potential energy bill savings. A solar feasibility report helps decision-makers understand if a solar project is viable before implementing it.

The GreenLancer team estimates solar savings by considering the system’s installed capacity, local solar irradiance, and electricity rates. The formula typically involves evaluating the annual energy production estimates of the solar panels using historical weather data and multiplying it by the cost per unit of electricity. This calculates the potential savings compared to purchasing grid power from the electricity company.

The average payback period for a home solar system is between 6 and 10 years if the homeowner qualifies for the federal solar tax credit and can take advantage of net metering programs. The solar payback period depends on factors like the PV system cost, the local climate, electricity prices, and available PV incentives and solar rebates. These are all critical variables when creating a solar feasibility report.

The payback period for a commercial solar system varies, but it’s generally around 5 to 8 years. Factors influencing the length include the solar project cost, local sunlight conditions, utility power rates, and available solar energy incentives. These are critical considerations for a GreenLancer solar feasibility study. Commercial solar energy system costs The PV project cost varies depending on numerous factors, such as the solar project capacity, solar panels and equipment quality, mounting system, labor expenses, and solar permitting and interconnection costs. Also, having a three-phase electrical supply allows for a more powerful three-phase solar inverter. The solar project site has a big impact on the cost of the system and subsequent maintenance. For example, if it is a ground-mounted solar array, there may be mowing expenses to prevent shading. Likewise, many projects will require a transformer upgrade, which the customer might be responsible for paying. However, many commercial projects involve solar power purchase agreements (PPAs), with third-party ownership. Solar PPAs usually don’t require an upfront investment, but it is critical to secure solar project financing. Solar resource Solar energy systems generate more electricity in an unshaded location, with an ideal orientation, in a sunny climate. A critical aspect of a solar feasibility analysis is determining the available solar resources. This is instrumental in generating solar array output estimates. Utility power rates Determining the electricity rate is critical for creating a solar feasibility report. Some businesses have demand charges, which may correlate with peak sun hours. If so, the solar array may help offset demand charges, leading to a greater reduction in operating expenses. Commercial Solar Energy Incentives Most businesses can take advantage of the solar investment tax credit (ITC) and bonus depreciation if they purchase the solar system and don’t enter into a PPA. Also, some utility or state solar incentives and government grants are available in some cases that can further reduce the total cost of the solar project. Solar system owners in states with Solar Renewable Energy Certificate (SREC) markets can also generate income. However, SREC values can vary significantly by state and over time.