What a Commercial Solar Feasibility Study Should Include
A useful commercial solar feasibility study should connect site data, load analysis, system design, financial modelling, risks and implementation requirements.
A useful commercial solar feasibility study should connect site data, load analysis, system design, financial modelling, risks and implementation requirements.
A feasibility study should help an organisation decide whether to proceed, revise the concept, change the financing model or stop the project. It should not be a longer version of a sales proposal.
The study must connect real facility data to a technically viable and economically credible implementation pathway.
1. Project context and objectives
The report should explain the facility, energy problem, decision being considered and intended outcome. The objective may include cost reduction, backup, resilience, emissions reduction, service improvement or expansion.
2. Energy baseline
Include historical electricity consumption, expenditure, tariff structure, demand profile and major loads. Note data gaps and explain how they affect confidence in the analysis.
Where the load is expected to change, include the planned expansion or operational changes rather than designing only for historical consumption.
3. Site and infrastructure assessment
Assess available roof or land area, orientation, shading, structural condition, electrical infrastructure, point of connection, space for inverters and batteries, environmental exposure, access and security.
Site constraints should be visible in the design and cost assumptions.
4. Technical options
Compare suitable configurations rather than presenting one unexplained system size. Options may include grid-tied solar, hybrid solar with storage, critical-load backup, phased deployment or efficiency measures combined with solar.
Each option should state the system capacity, major equipment, expected production, operating strategy and limitations.
5. Energy-production and performance assumptions
State the solar resource, system losses, degradation, availability and operating assumptions used. Explain whether excess generation is expected and how it will be treated.
Performance estimates should be realistic enough to support financial decisions, not optimistic marketing figures.
6. Preliminary engineering design
The study should define the electrical concept, array layout, inverter arrangement, battery concept where applicable, protection, monitoring, connection requirements and major balance-of-system items.
At feasibility stage, the design may remain preliminary, but it should be detailed enough to support cost estimation and procurement planning.
7. Capital and operating cost estimate
Include equipment, installation, design, approvals, structural work, protection, monitoring, logistics, taxes, contingencies and other material costs. Operating costs should cover maintenance, monitoring, insurance where applicable and expected component replacement.
8. Financial and economic analysis
Show expected savings or service payments, cash flow, payback and other relevant indicators. State assumptions clearly and test sensitivity to variables such as energy price, production, capital cost and financing terms.
9. Financing and delivery options
Explain whether the project is suitable for direct purchase, debt, leasing, a PPA, energy-as-a-service or a blended route. Identify the implications for ownership, payments, performance risk and procurement.
10. Risk assessment
Cover technical, commercial, regulatory, procurement, environmental, operational and financial risks. Assign practical mitigation measures and identify risks that require further investigation.
11. Implementation roadmap
End with clear next steps: additional surveys, internal approvals, procurement documents, financing engagement, tendering, contracting, installation, testing, monitoring and reporting.
A strong feasibility study should reduce uncertainty and improve the quality of the next decision. It should not simply conclude that solar is attractive.
Planning a commercial or institutional solar project?
Download the Commercial Solar Readiness Checklist and Project Data Request Template before commissioning a feasibility study.