A representative from Powys-based consultancy firm Dulas Ltd has visited the town recently to begin the study.
During the visit they were introduced to some of the businesses that have expressed an interst in being part of a Community Solar Energy Scheme.
These studies will examine critical aspects of the projects including technical considerations, generation potential, costs, financing, and governance options.
Rhayader Town Council was one of five community energy groups selected to receive feasibility studies for its renewable energy schemes.
The studies will be provided by Powys Energy for All, a project run by sustainability charity Severn Wye.
These community projects are designed to generate renewable energy at the local level, ensuring that decision-making, ownership, and benefits remain within the community itself.
The other chosen groups included Black Mountains Community Energy (part of Llangattock Green Valleys), Llanfyllin Energy Generation Group, Llanidloes and District Energy Local Club, and Open Newtown.
Lee Tulfer, Severn Wye’s community renewable energy manager for Wales, said: “This is an exciting time for community energy in Wales.
“Powys Energy for All identified an ambition within Powys for this kind of renewable energy project, and we are delighted to support these five groups as they develop.
“These funded feasibility studies will enable groups to take their projects to the next stage and will create opportunities for shared learning which can also benefit future projects.”
The Powys Energy for All initiative aims to explore options for community-owned solar generation projects, supporting them to build the skills and confidence to run events, manage a project, and build strong relationships with local authorities, funding partners and other stakeholders.
The project is funded by the Energy Redress Just Transition Fund and supported by Powys County Council..
Rhayader Town Clerk Julie Stephens said: “As I understand it if the project went ahead the ultimate arrangement would the solar panels would be owned by a community group (a Co-Op or Community Investment Company for example), the panels are ‘hosted’ on various business /organisations’ roofs and the community group would “sell” the power generated to the business/organisation through a Power Purchase Agreement (setting a p/kWh).
“The business/ organisation would benefit from buying power at a far cheaper rate than their current supplier and the community group benefit by earning a revenue from the power sales.”