It seems as though every week there is another solar power study released that is glorifying the benefits of solar power as well as all of the many reasons why companies and individuals should begin investing in this industry. In recent years, people have become more aware of the drawbacks of a reliance on fossil fuels and oil, and have become more and more interested in a feasible alternative.
One of the primary benefits of continued studies and research on solar power is that it is becoming more and more affordable. While solar farms were previously limited to only people with millions of dollars to spend, like Warren Buffett and numerous other well-off investors, small scale solar power projects are now available for a price more in-line with budgets of smaller businesses and households. In fact, a recent solar power study revealed that it’s one of the cheapest and most feasible alternative energy sources available. The practicality and, now, the affordability of solar power are the primary reasons it has become such an intelligent investment.
However, like any investment, it is important to understand the risks beforehand. Although it is often touted as a wholly positive endeavor, not every solar power project survives – and this is why every investor should take time to complete a solar power study on the feasibility of a project before they begin. It just makes good sense to do a solar power analysis.
In order to determine the feasibility of a project, a company will send out a team of experts to review the site. In addition to checking for the primary ingredient – direct sunlight – this team of professionals will also execute a full analysis of the project. Everything from the projected costs, budget and estimated return on investment to the zoning approvals, land leases and permits will be reviewed and considered. Often, all of this information will be compiled into an exhaustive report that will be presented to the project investor(s) and primary decision makers.
After receiving the solar power study for their project, the investor can decide one of two things. In most cases, the investor will continue with the project and begin ordering equipment and breaking ground. However, if it is determined that the project is not very feasible, they may opt to not follow through with the project at all. In other cases, a study may reveal that although a project is not feasible today, it will become feasible if major changes are made.
While solar power projects are becoming less and less expensive every day, it is still recommended by almost any solar power expert to hire a team of experts to complete a solar power study before starting a photovoltaic project. Without this step, the risk is much too high.