Solar farming has grown quite rapidly over the last few years. As a land-owner, you can make money from solar panelsin two ways:
- Lease your land out to a solar company who will mount, maintain and organize the installation, handling all contracts with the power company. The owner is then paid an annual profit based on the contract.
- The land-owner may opt to buy and install the solar panels himself. The initial capital cost is much more but the profits are greater.
Is a solar farm worth the investment? In this post, we’ll examine the number of solar panels that fit on one acre, their power production, installation costs and profit per acre of one acre solar panel. We’ll also provide practical tips for increasing your solar farm’s income.
- How many solar panel per acre
- How much power does a 1 acre solar farm produce?
- How much money does one acre of solar panels make per year
- Solar farm income per acre
How many solar panel per acre
The number of solar panels that can fit in one acre depends on several factors, including the size and the tilt and orientation of the panel array, and any space required for access roads, fencing, and other infrastructure.
An acre of land is equivalent to 43,560 square feet. By converting the panel dimensions to square feet, we can calculate the number of panels that can fit within an acre.
For example, a 540-watt solar panel with dimensions of 2279×1134×35mm occupies approximately 27.82 square feet. Assuming no space is required for access roads or other infrastructure and that the panels are mounted in a fixed tilt orientation, approximately 1,565 solar panels can fit on one acre of land.
Note:
In reality, space is usually required for access roads and other infrastructure, and the orientation of the panels may be adjusted to maximize their efficiency. Therefore, the actual number of solar panels that can fit in one acre may be lower.
How many solar panel per acre
The amount of power produced by 1 acre of solar panels can vary depending on several factors, such as the weather, the location of the solar panels, and the amount of sunlight they receive.
To estimate the energy production, we can use the following formula:
Energy Production = Number of Solar Panels * Wattage of Solar Panel * Number of Peak Sun Hours
Assuming the solar panels receive an average of 5 peak sunlight hours per day, 1 acre of solar panels could potentially produce around 4,225.5 kilowatt-hours (kWh) of electricity per day. This would translate to approximately 126,765 kWh of electricity per month, which could supply power to about 141 homes, based on the monthly average of 899 kWh of residential electricity consumption as stated by the EIA.
How much money does one acre of solar panels make per year
Solar farms can be profitable, but the income per acre and ROI (return on investment) will vary depending on various factors such as location, size, technology, and energy prices.
Understanding the income potential from a solar farm can vary greatly depending on how the land is utilized. There are two primary scenarios for generating income from solar panels.
The first option involves leasing the land to a solar developer. According to a Purdue University poll, which surveyed more than half of large U.S. farmers, solar lease rates varied. The majority of farmers, 54%, were offered less than $750 per acre annually. Specifically, 32% received offers of less than $500, 22% were offered between $500 and $750, and 27% were offered more than $1,000 per acre. Based on these figures, the average annual solar lease rates per acre is approximately $562.50.
The second option is to install and operate the solar panels yourself, feeding the electricity into the grid to benefit from tax credits. Businesses can access two types of tax credits, and we focus on the Production Tax Credit (PTC), which is more directly influenced by solar power generation. This approach helps in calculating the profit per acre of solar panels.
Solar farm income per acre
The annual income from one acre of solar panels varies based on several factors, including location, sunlight availability, tax credit for solar photovoltaics, and the efficiency of the panels.
Based on previous calculations showing a monthly solar power production of 126,765 kWh, we can estimate the income from a solar farm using the PTC valued at 2.75¢/kWh, according to information from Energy Department. The solar farm income is $3,486.04 per acre per month and $41,832.48 per acre per year.
How much does a 1 acre solar farm cost
The cost of a solar farm per acre can vary widely depending on various factors, such as the location, size, and design of the solar farm, as well as the cost of labor and materials in the region.
In general, according to the National Renewable Energy Laboratory, the average cost of a utility-scale solar photovoltaic (PV) system in the United States was around $1.06 per watt in 2020. This translates to roughly $1,060 per kilowatt (kW), or $1,060,000 per megawatt (MW) of installed capacity.
How much money does 1 mw solar farm make
As for the profit of a 1 MW solar farm, it depends on a variety of factors, such as location, electricity prices, and local government incentives or subsidies.
Typically, the revenue generated by a solar farm is determined by the amount of electricity it produces and the price at which it is sold to the grid. According to the Solar Energy Industries Association (SEIA), the average price for solar electricity in the United States in 2021 was around $0.06 per kilowatt-hour (kWh).
Assuming a solar farm operates at full capacity and generates 1,000 kWh per hour, it would generate approximately 24,000 kWh per day (1 MW x 24 hours). At an average price of $0.06 per kWh, the solar farm could generate approximately $1,440 per day in revenue ($0.06 x 24,000 kWh). Over a year, this would amount to approximately $525,600 in revenue.
However, it's important to note that the cost of building and maintaining a solar farm will also factor into its profitability. Additionally, local electricity prices and government incentives can vary widely, so revenue from a 1 MW solar farm can vary significantly based on these factors.
How to Boost Solar Farm Income Per Acre
There are several strategies you can consider to boost the income generated by a solar farm per acre:
Increase efficiency
Boost income by maximizing energy per acre with high-efficiency solar panels, oversizing the solar panels, proper configuration for orientations and tilt, and minimizing the affect of dynamic shading. Our grid-tied inverter enhances solar energy production effectively.
Add energy storage
Adding energy storage can allow you to store excess energy generated during off peak hours and sell it during periods of high demand, increasing the revenue generated per acre.
Implement a tracking system
A tracking system can follow the movement of the sun and adjust the panels accordingly. This ensures that the panels are always positioned optimally, maximizing the amount of energy generated per acre.
Enter into power purchase agreements (PPAs)
PPAs are contracts that guarantee a fixed price for the energy produced by the solar farm over a certain period of time. Entering into a PPA can provide a steady income stream and reduce the risk of fluctuations in energy prices.
