Solar
energy projects in the U.S. today are trending upward adding renewable resource
capacity daily. These projects, launched by individuals, large utilities
and solar
project developers, range in size and
application. According to the Solar Energy Industries Association (SEIA),
solar energy accounted for 40% of new generating capacity in 2019. These
projects are the result of key drivers like declining solar technology costs
and volatility in fossil fuel prices.
Environmental Studies and Permitting
Plant Design
Financing
Before a
solar project is built, several preliminary steps are undertaken. These
precursors help to ensure the viability and profitability of each project.
Three of the important pre-construction considerations for a project include
environmental studies and permitting, plant design and financing.
Environmental Studies and Permitting
Depending
upon the location and size of a prospective plant, an environmental impact
statement may be required by the federal government. Other permitting
issues include city, county and state zoning restrictions and other land use
limitations. One notable characteristic of solar energy is that it does not
preclude all other land uses. Plant equipment does affect land use but, ranching
operations, for example, can often coexist with an operational solar plant.
Plant Design
This step
of development includes specifications for equipment to ensure compatibility
and consideration of how the system will be configured. It often includes plant
production and performance forecasts by modeling the system in software. Using
location specific solar resource data and the expected efficiencies of system
components these predictions are often quite accurate.
Financing
Solar
energy projects differ considerably from conventional energy generation in that
the initial capital expenditure is normally higher in terms of dollars per unit
capacity. This is offset to some degree by the absence of a fuel cost component
for ongoing operations. Financial instruments tailored to the industry are
available to address these differences.
Clearly,
new solar plants and renewable energy projects generally stand to benefit if
current trends prevail. Strong economic incentives exist to transition from a
fossil fuel dominated energy market to one based on more sustainable, renewable
resources. The forecast for solar energy, it seems, is sunny indeed!
