Maybe consumers are getting wiser, or maybe it’s because – thanks to the internet – people have access to more information than ever before. Regardless of the reason, it seems that everyone is doing more and more research before making big investments. From reading labels and comparing price tags in the middle of a grocery isle to test driving ten cars before making a single down payment, everyone wants to feel as though they’re getting their money’s worth and stretching their penny farther. So wouldn’t it make sense to conduct thorough research and examinations before investing in something as significant as a solar farm?
It’s surprising to see the number of people who jump into purchasing the equipment and digging ground for a solar farm on their property before completing even the slightest bit of due diligence. Given the fact that billionaire investors and successful venture capitalists all over the world are eagerly buying up solar farms, it’s easy to assume that there is little to no risk involved – but there is. In fact, investing in a photovoltaic (PV) project without doing a solar farm feasibility study can be catastrophic.
A solar farm feasibility study is exactly as it sounds – it’s an in-depth analysis completed by industry professionals to determine the estimated ROI of PV projects before a single shovel hits the soil. Some people assume that just because their land receives a great deal of direct sunlight, that they’re bound to hit the jackpot by putting in a solar farm. However, there are many more considerations to make. Investors must also consider local zoning regulations, licensing and land lease agreement terms. Additionally, investors should know about any environmental issues that may affect their project.
It goes without saying that, given the right conditions, a solar field can yield a return on investment. However, the ROI may not happen quickly enough for all investors. Before spending a life’s savings on a solar field, investors need to know how long it will take before they recoup the cost of their initial investment and begin enjoying a profit – especially if other investors are involved in the project.
In other words, a solar farm feasibility study can reinforce the strength of an investment – or it can help individuals and business owners from making a regrettable oversight. While it may be an extra expense, a Solar Farm Feasibility Study can save investors from a million dollar mistake.