The cost of solar farms can vary depending on location. In this article, we will learn about how much a solar farm costs as well as solar cost per acre.
Nội dung bài viết
How much does a solar farm cost?
Installation costs for solar farms typically range from $0.89 to $1.01 per watt. Accordingly, the cost of a 1 megawatt (MW) solar farm would range from $890,000 to $1,01 million.
Rooftop solar systems are more expensive to install and maintain than solar farms. Residential solar panel systems, which are typically under 20 kW, cost $3.06 per watt, according to statistics.
In other words, the cost per watt for a solar farm is less than one-third that of installing residential solar power.
Because of the low cost of solar farms, utilities are increasingly using them when adding new power generation capacity. Solar is not only one of the cheapest renewable energy sources; it is also now competitive with fossil fuel energy sources!
Solar Farm Cost Factors
The total cost of a solar farming operation is determined by the following factors:
- Is the land owned or will it have to be purchased? Is the land cleared or need to be cleared?
- Are there power lines to the property? Are high-voltage lines capable of receiving solar-generated power?
- How much does a solar array cost in terms of equipment?
- The total cost of permits and other required documentation.
- How much will be spent on electricians and workers to set everything up?
How Much Does It Cost to Build a Solar Farm per Acre?
Solar farms typically cost $450,000 per acre, though prices vary depending on location. A 1-megawatt solar farm would require six to eight acres of land. Depending on your project, paying for a project by energy output rather than acreage may be more cost-effective.
Solar farm cost per acre in details
The first prerequisite is land. The ideal location is flat land or a gentle slope facing south. However, most large plots of cleared land will suffice.
One acre of land costs about $3,160 on average. This amount, of course, varies greatly depending on the location and condition of the land.
This is where things start to get a little pricey. Panel prices range between $26,750 and $31,000 per acre. There will also be some additional costs, such as installing the equipment, batteries, transformers, and wiring.
A 1-acre solar farm operation should cost around $35,000, not including permit fees, land clearing, and labor. That would be closer to $30,000 if you own the land.
Keep in mind that this is only the cost of the panels and the land. It gets much more expensive from here, with costs such as miles and miles of copper and aluminum wire.
How much do solar farm leases pay?
According to top solar land lease websites, landowners who rent out their land for a solar farm can earn between $250 and $3,000 per acre per year.
This is an option for those who do not want to build their own solar farm and would rather lend their land to an outside solar developer.
You might be wondering why lease rates vary so widely. It is because there are numerous factors based on your location that can affect the going price for a land lease; these factors include:
- The price of land in your area
- Infrastructure for electricity transmission close to your property
- Alternative uses for your property (i.e. possible agricultural farm income)
- Demand in your country for renewable energy
- National and local government incentives for owners of solar farms
In short, the amount you can earn by leasing out your land for a solar farm is highly dependent on your market conditions.
Agreements are typically 15 to 20 years in length, with options to extend for up to 50 years. They also include annual inflation escalators ranging from 1.5 to 2.5%.
Some developers even offer to make a sizable upfront payment for the leases.
Summary
The aforementioned article should have assisted readers in determining the cost of a solar farm as well as the appropriate land rental cost for a solar farm on an acre. Stay tuned for more updates.
