Site Selection for Renewable Energy Projects: What Matters Most

Ivan Smiljanic • Insights • April 10, 2025 • Time reading: 3 min

When it comes to renewable energy project development, site selection is arguably the most critical step. Choosing the right location impacts everything – from permitting timelines and infrastructure access to long-term financial returns and community support. At IPG, in partnership with Anwin, we’ve seen firsthand how smart site selection strategies can make or break a project.

Whether you’re evaluating land for solar installations, wind farms, or hybrid energy systems, a structured and informed site selection process can ensure a smooth development path, regulatory compliance, and optimized operations.

Understanding Site Selection Strategy in Renewable Energy

A solid site selection strategy starts by defining the end goal – what type of energy is being generated, at what scale, and for whom. For example, solar site selection may prioritize flat, sunny parcels with minimal shading and good interconnection potential, while wind projects require elevation, steady wind speeds, and space for turbine installation.

Across all renewable sectors, here are key criteria that should guide your strategy:

Resource Availability: The energy yield is directly tied to natural resources. Solar developers analyze irradiance and shading, while wind developers monitor multi-year wind speeds. The viability of any site hinges on its capacity to generate consistent and scalable energy.
Grid Access and Infrastructure: Is the parcel close to substations or transmission lines? Interconnection costs can be one of the most unpredictable variables in project budgets. Sites with proximity to infrastructure reduce risk and increase bankability.
Land Use and Zoning: A deep understanding of local zoning laws, land use restrictions, and environmental constraints is vital. This includes protected habitats, wetlands, and historic or cultural sites. Overlooking these details can derail a project during the permitting phase.
Community and Regulatory Landscape: Public perception and municipal support can heavily influence permitting success. Proactive stakeholder engagement and clear communication around economic and environmental benefits are essential.
Topography and Soil: Especially important in solar site selection, the land’s grade and soil type influence how panels are mounted, how water flows, and ultimately, how efficient your installation will be.
Size and Scalability: Even if your current development plans are modest, securing a parcel with room to expand can enhance long-term value. Plus, larger sites often benefit from economies of scale in permitting and construction.

Applying a Smart Site Selection Process

Anwin’s clean energy experts, in collaboration with IPG’s real estate specialists, follow a proprietary site selection process that combines technical analysis, real estate expertise, and local insight. Our multi-phase process includes:

Preliminary Screening: Using GIS and satellite tools to evaluate land parcels based on solar or wind resource data, proximity to substations, and environmental overlays.
Due Diligence: Ground truthing the data with on-site visits, stakeholder meetings, and preliminary design concepts.
Feasibility Modeling: Factoring in permitting likelihood, buildable area, interconnection costs, and potential output to create project pro formas.
Negotiation and Acquisition: Securing land control through leases or purchases, informed by realistic timelines and risk analysis.
Permitting Strategy: Developing a plan for local, state, and federal permitting that aligns with local policies and optimizes approval pathways.

The Future of Energy Project Development

As pressure to meet clean energy targets accelerates, the competition for viable project sites will only intensify. Developers who understand the nuances of location – who look beyond surface-level metrics and incorporate deep local knowledge – will be better positioned for success.

And as IPG and Anwin continue to support decarbonization goals through strategic real estate advisory, our approach to site selection will remain rooted in practicality, precision, and partnership.