Path-Q Solar

How can a required transformer or service upgrade affect solar project feasibility?

Answer

A transformer or service upgrade can materially increase cost, extend the schedule, change the connection design, or make the project uneconomic. Feasibility should be evaluated using a written utility scope and cost estimate rather than a generic allowance.

Key points

  • The upgrade may be needed for capacity, voltage, protection, reverse power, service size, or export limits.
  • Costs can include utility construction, customer-side electrical work, engineering, permits, equipment, and downtime.
  • The utility may control the design, procurement, scheduling, and final approval of its equipment.
  • Model the project with the upgrade cost, delay, financing carry, and any reduced export or curtailment.

What it depends on

  • Utility study results
  • Existing transformer and service capacity
  • Proposed export and connection voltage
  • Cost allocation and payment rules
  • Project revenue and financing assumptions

Risks and trade-offs

  • An upgrade can make a larger system less attractive than a smaller or export-limited design.
  • Upgrade estimates may change after detailed engineering.
  • Construction can cause service interruptions or require coordination with business operations.

Information you may need

  • Written utility upgrade scope
  • Itemized cost estimate
  • Schedule and payment milestones
  • Alternative connection or export-limited designs
  • Contract treatment of overruns and cancellation

Your next step

What to do next

Obtain a formal utility upgrade estimate and compare project economics with the upgrade, a smaller system, and any available export-control option.

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SQ00327