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Solar Energy PESTEL Analysis & Forecasting (U.S.)

📌 Project Overview

This project analyzes the growth of solar energy generation in the United States using a PESTEL framework (Political, Economic, Environmental) and applies time-series forecasting (SARIMA) to predict future trends.

The objective is to identify key drivers of solar energy expansion and provide data-driven strategic insights for decision-makers.

🎯 Objectives

  • Analyze historical solar energy generation (2015–2024)

  • Identify key external drivers (PESTEL factors)

  • Explore relationships between economic and environmental variables

  • Forecast solar generation for 2025

  • Provide strategic recommendations

📊 Dataset

Frequency: Monthly

Time Range: 2015–2024

Unit of Analysis: United States

Key Variables:

  • Solar Electricity Generation (MW)

  • Investment (Billion USD)

  • Electricity Price (USD/kWh)

  • CO₂ Emissions

  • Temperature (°F)

  • Precipitation (mm)

🧠 Methodology

  1. Data Preparation
  • Data cleaning and transformation

  • Time index creation

  • Handling missing values and outliers

  1. Exploratory Data Analysis (EDA)
  • Distribution analysis

  • Trend visualization

  • Seasonality detection

  1. Statistical Analysis
  • Correlation analysis

  • Regression modeling

  1. Time-Series Modeling
  • Stationarity testing (ADF test)

  • ARIMA model

  • SARIMA model (main model)

🔮 Forecasting Approach

The SARIMA model was selected because solar generation exhibits:

  • Strong upward trend

  • Clear seasonal cycles

📅 Forecast horizon:

2025 (12 months)

📈 Key Insights

  • Solar energy generation has grown significantly over the past decade

  • Strong seasonal patterns (summer peaks, winter declines)

  • Investment and electricity prices are key drivers of growth

  • Environmental conditions influence solar output

  • Solar expansion contributes to emissions reduction

⚠️ Limitations

  • National-level aggregation (no regional breakdown)

  • Limited time horizon

  • External shocks not explicitly modeled

🚀 Strategic Recommendations

  • Invest in grid infrastructure to support future capacity

  • Maintain policy incentives for renewable energy

  • Expand energy storage solutions

  • Improve climate-based forecasting systems

📊 Dashboard

An interactive dashboard was developed in Power BI to visualize:

  • Solar generation trends

  • PESTEL drivers

  • Forecast scenarios

📁 File: /dashboard/Solar_PESTEL_Dashboard.pbix

🛠️ Technologies Used

Python (Pandas, NumPy, Matplotlib, Seaborn)

Statsmodels (ARIMA, SARIMA)

Power BI

Jupyter Notebook

📂 How to Run

Clone the repository:

git clone https://github.com/ChrisMoises/UNF-Group-Assignment-.git

Install dependencies:

pip install -r requirements.txt

Run the notebook:

jupyter notebook Solar-PESTEL-Forecasting.ipynb

📌 Author

Cristhian Moises Martínez Alay

Daniel Olmedo Zapata Gaibor

María Alejandra Boada Rodríguez

Viviana Rivera Lozano

Yovanni Rojas Cardona

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