In the world of Solar PV projects, even experienced developers can make costly errors that derail progress and drain resources. Identifying and addressing these issues early on is crucial for success. In this article, we’ll examine the top mistakes PV developers make and provide strategies for avoiding them, ensuring your solar farm development is both efficient and profitable.
Table of contents
Inadequate Preliminary Assessments: A Costly Oversight
One of the top mistakes PV developers make is failing to conduct a thorough preliminary project assessment, which covers both site assessment and feasibility studies. This critical step ensures that the chosen location is suitable for Solar PV installations and can significantly impact project timelines and costs.
- Tip: Perform a comprehensive site evaluation and feasibility study, considering factors like soil quality, shading, and proximity to transmission lines. We cover these things in a more in-depth way in our guide on solar project development.
Poor Financial Planning: The Road to Delays and Overruns
Underestimating the financial needs of a Solar PV project is a common yet critical mistake. This can result in delays or, worse, project failure. Maybe not surprisingly, this step ties into the preliminary assessment, which includes evaluating the costs and benefits of the project to determine if the project will be financially viable in the end.
- Tip: Develop a robust financial plan that includes all potential costs, including contingencies for unexpected expenses.
Inadequate Permitting: The Silent Saboteur
Permitting is a critical and often overlooked challenge in Solar PV development, and is another typical PV mistake developers make. Failing to secure the necessary permits can lead to costly delays and jeopardize your project’s success. The permitting process isn’t just about meeting basic requirements—it can involve stringent and expensive demands. Environmental permits, for example, may require mitigation measures like reforestation or stormwater management, while some projects might face additional costs for infrastructure upgrades, such as widening roads or installing stoplights.
The specific permits required depend on factors like location, size, and the nature of the project. Ground-mounted installations often attract extra scrutiny, especially when involving sensitive environmental areas or historical sites.
- Tip: To navigate this complex process, integrate permitting considerations into your overall project management plan. This should include clear timelines, resource allocation, and regular progress reviews to ensure that all permitting requirements are met without derailing your project.
Neglecting The Local Community: Communication and Community is Key
Failing to engage stakeholders early in the project is another common mistake that can lead to delays and budget overruns. Sometimes even complete discarding of the project.
We have previously written an extensive piece on how a Danish developer and IPP overcame NIMBY, but since not all developers have the budget to launch nationwide campaigns to generate positive connotations to solar farms and get people to adjust their attitude, there are other ways of making sure NIMBY will not become a problem to limit the risk of local opposition, as is the case in Japan where roughly 80% of all large-scale projects are hit by some form of opposition from local residents.
For utility-scale projects, but also even smaller ones, ensuring that communities are informed in advance through public consultations is oftentimes the key to getting any potential issues addressed before moving on. An example from the offshore industry, which isn’t that common, is RWE hosting local town halls ahead of its Thor project, resulting in minimal opposition.
- Tip: Establish clear communication channels and identity and engage all stakeholders from the beginning of the project to limit the risk of anyone objecting against your project and putting a spanner in the works.
Lack of a Decommissioning Plan: The Long-Term Oversight
One of the top mistakes PV developers make is overlooking the importance of a decommissioning plan. While the focus is often on the construction and operation phases, planning for the end of a Solar PV project’s life cycle is equally critical. Failing to develop a clear decommissioning strategy can lead to unexpected costs, legal complications, and environmental impacts when the time comes to retire the facility.
A well-crafted decommissioning plan outlines how the site will be restored to its original condition—or an agreed-upon state—once the solar panels are no longer in use. This includes the safe disposal or recycling of solar panels, the removal of electrical components, and the restoration of the land. Without such a plan, developers risk facing significant financial liabilities and regulatory challenges.
Moreover, decommissioning isn’t just about compliance; it’s also about sustainability. Ensuring that your solar farm can be dismantled responsibly aligns with broader environmental goals and can even improve community relations.
Tip: Begin developing your decommissioning plan during the initial project planning phase. This proactive approach can help you avoid future complications and ensure a smooth transition at the end of the project’s life.
