Feasibility analysis is imperative to assess the viability for any project before allotting time, budget and resources to it. Analyzing feasibility is always beneficial as it provides a clear picture of the proposed project to all its stakeholders. An efficient feasibility study will ensure the success of a project. In case of rooftop solar installation, the installer has to conduct feasibility assessment majorly on the technical, regulatory and economic aspects. Bigger projects require formal feasibility evaluation, for smaller projects checking main feasibility factors by the installer should be sufficient.
The feasibility, even of the small project, should be evaluated in three aspects: technical, legal and financial.
Technical feasibility evaluates the technical requirements that would be necessary for installation. For e.g., the capacity of the plant required for power generation, technical resources available to support installation and capacity generation, roof construction etc.
Regulatory feasibility assesses the regulatory adherence of the project. For e.g., whether the client possesses roof rights, environmental regulations of the locality, etc.
Financial feasibility evaluates whether an installation is financially viable when cost and benefits associated are compared. For e.g., the investment required, the payback period, etc.
For bigger projects, economic feasibility check is required. The project is economically feasible when it provides more economic benefits than harm – for example, solar power plants (besides direct benefits to owners) mitigate global warming problems, diversify energy sources, can generate local market etc.