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