Are you considering investing in the world of solar development? There is a significant amount of potential solar development risks and rewards, both financial and non-financial.

There are dozens of factors that affect the return from a solar development project, or even the likelihood of its success. Even one small risk can delay a project or bring it to a screeching halt, leading to large financial loss. 

As an investor, it’s important to be aware of both the solar development risks and rewards. This blog post will focus on the five top risks in investing in solar development.

Solar Development Risk #1: Land & Environmental

The first solar development risk you should consider is land and environmental factors. Archaeological finds may uncover important historical elements that need further exploration and may close a potential site for a future solar farm. 

There can also be other risk factors in developing the land, such as less sunlight than is necessary—or the discovery of an endangered species. If endangered animals or rare artifacts are found on the land, it could be required to close down.

Risk #2: Jurisdiction

The second risk factor is the regulations for solar farms. They are constantly changing, and there is a chance on any solar farm that new regulations will be introduced to that jurisdiction that make it no longer profitable to develop a solar farm in certain areas. 

For example, a law could pass that would limit the size of solar projects–making it impossible to develop a solar farm on the level needed for utility-scale solar farms.

Solar Development Risk #3: Political

Potential political issues are another risk in developing a utility-scale solar farm. Some demographics like the idea of solar, but don’t actually want it close to them, which can result in ending development completely. 

If public opinion and politics shift in the county where land has been purchased to develop a solar farm, it could result in shutting down the project.

Risk #4: Technology

The constant evolution of technology is a risk you should consider when investing in utility-scale solar. Solar panels and other energy technologies constantly change and improve. 

There is always the risk of new advancements in technology that can impact the relevance of the infrastructure. For example, a new type of inverter could leave a development project behind and require extra funds to convert the farm to more advanced technology.

Risk #5: Market

The final risk to consider before investing in solar is the market. If the need or demand for solar suddenly decreases with the rise of another form of energy or public opinion, it could lead to a reduction in profits. 

The risks we’ve discussed involving public opinion could lead the community to decide that solar is for them, and the demand (and therefore, the return) could plummet.

Considering the risks—but still believe in the future of clean energy?

At Shasta Power, we don’t shy away from risk—we manage it with care, experience, and full transparency. Our upcoming fund, Shasta Power Fund II, is being designed to deliver strong returns while navigating the complexities of solar development with strategy and purpose.

If you’re mission-aligned and ready to stay informed, join our waitlist and be first to know when the fund becomes available (if and when qualified).

Let’s build people-powered prosperity—wisely.