A solar farm can turn out to be a great way to increase your revenue with a business model while also safeguarding the interests of the environment.
Moreover, with increasing interest in solar energy and other renewable forms of energy, it is obvious that the demand for solar farms is at its highest.
Thus, many people who may be interested in setting up a solar power system at their home or even in starting a solar farm might wonder whether it is a good idea.
It is a good move to assess and research the profitability in the beginning and also the pros and cons so that you would not have to regret it later. Let us find out about the profitability of solar farms in this article.
What Is a Solar Farm?
In simple words, a solar farm as it sounds is a large collection of solar panels in a massive area, that produces electricity at a large scale.
In a solar farm, you would usually find at least a hundred or thousands of solar panels on a rack lined up in a pattern to gather the sunlight and be attached to batteries and equipment, producing electricity for use and consumption.
The main motive of a solar farm, unlike a solar energy system in a household, is to ensure profit generation and the distribution of electricity further to companies or the government.
Although it is not fixed where solar panels can be installed for a solar farm, generally, these need large areas in abundance where the land can handle the weight of several panels for a long period.
What Are Some Advantages and Disadvantages of Having a Solar Farm?
Some advantages of having a solar farm include:
- Help in creating a sustainable and green future, by cutting down on carbon emissions and promoting the use of renewable energy.
- Production of electricity at a lower cost and without hurting the environment or nature.
- Creating new employment opportunities and also generating revenue for the economy.
Some disadvantages are:
- Huge cost at the beginning, especially while setting up the panels and installing the system.
- Since the solar power system is heavily dependent on the weather and climate, it is obvious that it might not turn out to be a feasible option for everyone.
- Lastly, the large amount of vacant land required to install a solar farm is difficult to find owing to the increasing population.
Is a Solar Farm Profitable?
Although there are numerous factors involved in making or turning a solar farm into a profitable unit, generally, a solar farm can easily make a profit.
One of the most important factors involved in the profit-making of solar farms in the area and place you decide to set it up in.
Since weather and climatic conditions play a major role in solar energy, your profit would highly depend on the amount of sunlight you can avail in a year and how much electricity you can generate.
Moreover, your profit would also depend on the cost-cutting options you can avail. Nowadays, the government is granting several incentives for setting up solar farms.
Lastly, it depends on whether you can capitalize the gains from your solar farm into electricity that can be sold for a good price.
What Is the Cost of a 10 MW Solar Power Plant?
As per the data available globally, on average a 10 MW solar power plant can easily cost you up to $10 million to $20 million.
There can be no fixed answer to this question, simply because the prices of fixed assets like land, machinery, and even labor including the government taxation policies vary.
If you live in a country or area where these costs are relatively lesser, you can expect to pay a much lower price for setting up the solar power plant.
Additionally, you must understand that setting up a solar power plant is no less than a major investment, which you are making for the future.
In this investment, you have to spend on all the equipment, panels, batteries, space, etc. Since a solar farm generally requires a large amount of area, thus the cost is high as well.
How to Make the Most Out of Your Solar Farm?
If you are willing to make the most out of your solar farm, you simply need to ensure that the panels receive an adequate amount of sunlight throughout the year.
Moreover, you need to ensure that the panels and the entire solar energy system are cleaned regularly and the maintenance is ensured to a level that every problem is fixed as it arises.
For these, you must be able to track the performance of your system and also invest in good quality equipment.
What Are the Best Solar Companies in the World?
If you are looking for some of the best solar manufacturers or companies in the world, you may need to research according to the area or country you live in, to know the exact manufacturer you should get in touch with.
Nevertheless, the following are some of the most well-known and reputed solar companies in the world.
- First Solar
- Jinko Solar
- Enphase Energy
- Trina Solar
- SMA Solar Tech
- Yingli Solar
You must ensure that before you formalize a deal between you and one of these companies, you should get in touch with the manufacturer and clear all your doubts and questions.
Many people have no idea about how they can maximize solar energy when they start with a solar farm.
Therefore, although you can easily turn your solar farm into a profitable venture, you just need to assess numerous factors beforehand to determine whether it is the right choice for you.
Without a proper assessment of the pros and cons of starting a solar farm, it is difficult to find out whether it is the right choice for you.
Thus, do your research and speak to the experts in the field.