Average Solar Farm Income Per Acre

How much income will an acre of solar farm bring in? Hang on as we provide information relating to cost among other things. I think it’s safe to assume that almost everyone reading through this article knows what a solar farm is.

While this is true, it won’t be surprising to have audiences with limited understanding of a solar farm.

There’s nothing to feel bad about if it’s your first time. To help you catch-up, we’ll briefly define what it means. Solar farms are large-scale solar installations. These are installed with photovoltaic panels meant to harvest the sun’s power which is collected into batteries.

READ: Writing a Solar Farm Business Plan

A solar park or farm can also be called a solar power station.

How Much Does a Solar Farm Make Per Acre?

Solar farms have long been targeted as a viable energy business. Such large-scale solar farms or parks are installed with photovoltaic systems meant to sell or market power to the electricity grid. However, this isn’t the focus of our discussion.

Rather, we seek to know what the income outlook is like.

Energy Pricing

Understanding the income per acre of solar energy requires that you have a good understanding of energy pricing.

Energy pricing isn’t static. It’s always fluctuating due to several factors. It’s important to consider these influencing factors to better appreciate income per acre of solar power.

• Weather

Weather is among the chief influencing factors of energy or electricity prices. For solar farms, adverse weather conditions affect power generation. Cloudy days will impact significantly on solar power generation. However, this shouldn’t be confused for a zero generation of electricity.

Despite cloudy conditions, solar farms will still generate about 10 to 25% of their rated capacity.

Hailstorms are also weather problems that may sometimes cause damage to solar panels. However, new improvements are making this less likely. Extreme weather conditions such as floods, blizzards, and hurricanes can affect the prices of electricity too.

• Government Regulation

The income earned from a solar farm can be determined by government regulations. Different types of policies on energy exist and are being made every time. Such policies may increase the cost of solar power due to the higher cost of accessories such as batteries or solar panels among other things.

• Usage

Solar power farms supply energy to the grid. Now, the amount of usage will determine the applicable cost for power consumed. The more energy is being consumed the more income per acre you get. These are the broad influencing factors affecting pricing. However, there may be others that have not been touched on.

Solar Developer Vs Property Owner

At this point, it’s important to differentiate between the solar developer and the property owner. A solar developer is simply interested in finding a property or land large enough to install solar equipment for power generation. In doing so, the solar developer needs the cooperation of the property owner. This relationship will require a lease agreement between both parties.

If the land is suitable, the lease agreement requires payment to be made yearly or whatever time cycle both parties agree on. A lease will focus on different aspects of the operation such as the acreage required, lease term as well as the monthly or yearly rent (whichever applies).

Solar Farm Income Per Acre

Solar farm projects will fetch property owners anywhere between $22,500 to $42,500. This income depends on the project. It’s important to note that the earnings per acre could go much lower or higher depending on multiple factors centered around the value of such land. Lease rates are also determined by the same factors.

These consist of the following;

• Amount Of Sunlight

Adequate availability of sunlight on your property is essential and helps determine if such land is fit for a solar farm. So, what land doesn’t receive an adequate supply of sunlight? When there are lots of obstructions, such property won’t be ideal for the project. It might also be impracticable to start clearing or removing these obstructions.

In the case of a few trees, it could be worth the effort to clear them. However, a land with lots of trees won’t be ideal. Plus, cutting down such things will be detrimental to the environment.

• Land Space

The space available for a solar farm must be adequate. We are talking about several acres of land. However, certain solar farm projects may require lesser land than others. This might affect the use of your property for a solar farm. Note that apart from available space for panel installation, there must be additional spacing for other power equipment or accessories such as batteries, etc.

• Soil Quality

How is this important for siting a solar farm? Very important! Certain soils are unstable while others may be filled with lots of obstructions such as debris. If a piece of land has one or all of these conditions, it becomes impractical and nonviable for a solar farm. The reasons are simple. Clearing such obstructions significantly increases the developer’s budget.

• How Close Is The Property To A Utility Grid?

Being close to a utility grid network contributes significantly to the income you get per acre of a solar farm. It will even decide if your property will be used for such a project. Certain properties are far removed from grid utilities such as accessible roads among others.

A solar will easily get disinterested when there’s no sign of such provisions. It is also highly unlikely that they will build such utilities due to the cost implications.

These are considerations to be made in determining the income per acre a solar farm will fetch a property owner. We have also provided an earning range and explained those factors which determine what you get or may not get. A solar farm project might not even take off if your property isn’t suitable for such.