The Essential Guide to a Solar PV Feasibility Study
In growing energy markets across Africa, conducting a comprehensive Solar PV feasibility study has become the cornerstone of successful project implementation.
As the continent continues to harness its abundant solar resources, with recent data showing significant growth potential across key markets including Nigeria, South Africa and Kenya, the importance of thorough feasibility assessment.
The global solar market reached unprecedented heights in 2024, with approximately 600 GW of new installations worldwide. Africa’s 2.4 GW contribution to this growth demonstrates the continent’s increasing recognition as a viable destination for solar investment (Global Solar Council, 2025).
As proven as the technology is, the complexity of developing solar projects requires meticulous planning and assessment to ensure operationalisation. However, the level of detail in a feasibility study has evolved over the years – many solar PV projects only require a slimlined version for financing.
A well-executed feasibility study serves as the foundation for informed decision-making, risk mitigation and successful project financing. It addresses the multifaceted challenges that developers face when transitioning from concept to implementation—a gap that many projects struggle to bridge.
Sections of a Solar PV Feasibility Study
Understanding the Foundation – Site Assessment and Resource Evaluation
Site suitability evaluation encompasses land use adequacy and ongoing suitability for solar power generation. Geotechnical investigations, including foundation requirements and soil analysis, determine the structural feasibility of the proposed installation. Accessibility constraints and infrastructure requirements often prove decisive in project viability, particularly in remote locations where grid connection costs can become prohibitive.
Accurate resource assessment forms the backbone of all subsequent technical and financial calculations. This involves comprehensive meteorological data analysis. Procurement of bankable SolarGIS, Meteonorm or PVGIS time series data spanning 10+ years becomes essential, including Global Horizontal Irradiance measurements.
Climate variability assessment extends beyond simple irradiance measurements to include analysis of Direct Normal Irradiance and Diffuse Horizontal Irradiance patterns. Environmental factors such as temperature profiles for both ambient conditions and module performance, combined with wind speed and direction data for structural design considerations, create a comprehensive picture of the site’s potential.
Long-term projections using IPCC scenarios and extreme weather event assessments have become increasingly important as climate change impacts intensify. These projections help developers understand not just current conditions but how the site might perform over the project’s 20-25 year operational life.
Technical System Design
Example areas to address in a Solar PV feasibility study:
- Solar PV technology selection and specs
- Solar array layout and configuration
- Electrical system design for solar PV (AC/DC)
- Inverter selection and sizing for solar PV systems
- Mounting system design for solar PV installations
- Solar PV performance modelling and energy yield projections
Array configuration optimisation determines optimal row spacing, module quantities and inverter block arrangements that balance land use efficiency with maintenance accessibility. Geotechnical considerations including foundation design and soil bearing capacity influence mounting system selection.
Single-axis tracking systems offer tracking ranges of ±60°, backtracking capabilities and optimised DC capacity ratios. These systems typically improve energy yield by 15-25% compared to fixed-tilt installations through enhanced morning and evening production.
System performance modelling analyzes module technology characteristics including temperature coefficients of approximately -0.4%/°C, spectral response variations and low-light performance. Inverter efficiency analysis across loading ranges compares central versus string configurations for performance and maintenance requirements.
Loss analysis covers transmission losses, soiling impacts, module mismatch factors and incidence angle modifiers to establish realistic performance projections for financial modelling.
Infrastructure Development and Grid Integration
Example areas to address in a Solar PV feasibility study:
- Transmission and evacuation requirements
- Substation design and specifications
- Grid connection procedures
- System stability analysis
- Grid code compliance
Site layout engineering requires array block positioning with maintenance corridors and electrical infrastructure planning. Containerised inverter stations require concrete foundations, whilst 33/330kV transformer compounds often represent significant capital expenditure.
Supporting infrastructure includes control buildings with SCADA systems, maintenance facilities with warehousing, security systems and firefighting equipment. These components constitute substantial capital and operational costs requiring assessment during feasibility evaluation.
Grid integration presents challenges in emerging markets with limited transmission infrastructure. Analysis must evaluate existing capacity and required upgrades. System stability considerations include reactive power compensation and harmonic filter requirements for grid code compliance.
Dispatch constraints and curtailment risks can significantly impact project economics where grid stability remains a concern.
Financial Analysis
Example areas to address in a Solar PV feasibility study:
- CAPEX, OPEX
- Development Costs
- Revenue and Tariff Structure
- Offtaker Creditworthiness
- Financial Returns
Capital expenditure includes equipment costs for PV modules, inverters and mounting systems, alongside construction costs for civil works, electrical installations and grid connections. Development costs cover permitting, legal expenses and project management. Contingency planning addresses risk mitigation and cost escalation factors.
Utility-scale installations in emerging markets typically require USD 80-90 million for 100MW capacity, though costs continue declining as technology matures.
Revenue evaluation addresses tariff structures with energy payments in USD cents per kWh, capacity payments and escalation frameworks protecting against inflation and currency devaluation. Power purchase agreement assessment and off-taker creditworthiness evaluation are important in emerging markets.
Financial returns through net present value, internal rate of return and sensitivity analysis provide investment decision frameworks accounting for emerging market risks.
Risk Assessment and Mitigation
Example areas to address in a Solar PV feasibility study:
- Technical risk identification
- Commercial and market risks
- Regulatory and political risks
- Environmental and social risks
Technical risks include performance degradation analysis with annual linear degradation rates and long-term capacity retention. Equipment reliability assessment based on performance in similar climates ensures appropriate technology selection.
Grid stability requires system reliability analysis and dispatch curtailment risk evaluation, particularly relevant in markets with developing infrastructure.
Commercial and regulatory risks encompass regulatory stability, policy continuity and permitting requirements. Solar PV feasibility studies in African markets must also address local content requirements and government policies promoting domestic manufacturing and employment. In tender processes, South Africa has previously required up to 100% local production of solar module components.
Currency and market risks include exchange rate volatility and tariff adjustment mechanisms. Force majeure considerations include political risk insurance and project completion guarantees.
Feasibility studies are often accompanied by a risk allocation and priority matrix, instructing the developer on which risks are most important, who should bear them and at what stage risks must be addressed.
Implementation
Advances in solar PV technology standardisation and a growing history of proven deployment has allowed for streamlined feasibility studies when it comes to solar PV.
Unlike other infrastructure projects such as urban railways or new LNG power plants that require extensive multi-year analysis, often looking in-depth at fuel supply chains, solar PV feasibility studies leverage established performance data, standardised equipment specifications and proven installation methodologies. This allows for focused assessment periods spanning 6-9 months rather than years.
Successful solar PV feasibility studies provide the foundation for utility-scale Solar PV development in emerging markets through comprehensive yet efficient technical analysis, financial modelling and risk assessment for securing financing and achieving commercial operation.
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For guidance on developing Solar PV feasibility studies and other project development aspects in emerging markets, get in touch with our team at info@gi-advisors.com.
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References
- Africa Solar Industry Association. (2024). AFSIA Annual Solar Outlook 2024. World Future Energy Summit.
- Climate Policy Initiative. (2024). Landscape of Climate Finance in Africa 2024.
- Global Solar Council. (2025). Africa Market Outlook for Solar PV 2025-2028.
- International Energy Agency Photovoltaic Power Systems Programme. (2024). Trends in Photovoltaic Applications 2024.
- Norman, W. (2023, January 24). South Africa lowers local content requirements for modules to speed up solar deployment. PV Tech.
