Traditionally, there are two main ways to make money from solar farms. These include leasing land to a renewable developer or, developing the land and operating the solar farm yourself.
The profit margin for solar farming typically ranges from 10-20%, according to sources like Solar Farm Income Per Acre Calculator. The average solar farm can earn $40,000 per MW installed, so the profit margin depends on factors like installation costs and energy rates, but overall lies within that 10-20% range.
If you have some acres of land or are willing to start a profitable business, you should start a solar panel farm on a small scale and then extend it according to your business needs. Here’s everything you need to know to start a small solar farm. What Is A Solar Panel Farm?
It requires an average investment, and the profit depends on the project. Investing in solar energy or farms involves a lot of money. Solar farm investment should be done cautiously and after a lot of financial planning, since starting a solar farm will mean you have to the investment of a minimum of $1 million.
Community solar farms produce around 5MW of energy on small-scale farms. These farms enable small enterprises and organizations to earn a credit on their electricity bills for the energy generated by their solar arrays, thereby reducing their electricity expenses.
Using the cost per watt range, a 1 MW solar farm would cost between $900,000 ($0.90 x 1,000,000) and $1,300,000 ($1.30 x 1,000,000) to build. In terms of power output, a 1 MW solar farm can generally power between 100-250 homes, depending on the amount of sunlight, size of homes, and energy use per home.