How to start the process of starting a Solar Farm Business?
In 2021 the solar farm sector set new records in terms of capacity. The solar farm industry has grown more quickly than other source of energy like natural gas or wind farms projects. The solar sector was the most well-liked type of new utility in 2020.
As technology advances, the cost of solar panels has been steadily decreasing. Solar energy is a well-known source of energy that is renewable because it emits no emissions.
Have you got an idea to build an solar farm? We have the details that you need.
How do you begin to open your own solar farm?
The last decade has seen an explosion in the solar sector. This has made solar energy cheaper and boosted overall demand. Landowners are in a unique position when energy companies seek to increase their investment into renewable power. Photovoltaic power stations are large areas of land with rows of solar panels. They are also called photovoltaic farms. The landowners then sell the solar energy generated back to the grid.
While the technology is identical, the size that solar energy projects are different. There are a variety of CSPs across the US. But, the most popular application for solar panel is the create energy for a photovoltaic plant. Photovoltaic power systems use power lines to connect.
Utility Scale Solar Farm
Solar farms that are utility-scale produce at minimum one megawatt of electricity and can generate up to two megawatts of power. There are currently more than 10,000 solar energy power farms in the United States.
One megawatt is enough power to power 200 homes. This is just one instance of the power that the largest solar farms on the market produces.
How do you begin to open your own solar farm?
The past decade has witnessed an explosion in the solar industry. It made solar power more affordable. and also increased the overall demand. Landowners have an opportunity in the energy industry as they look to increase their investments in renewable energy. Photovoltaic power plants are huge tracts of land that are equipped with rows of solar panels. They are also called photovoltaic farms. The landowners then sell the generated solar energy back to the grid.
Although the technology is the same, the scope of solar power projects is different. There are many CSPs throughout the US. But, the most popular use that solar panels are used for is to generate energy for a photovoltaic power plant. Photovoltaic power structures use cables to link.
Small Community Scale Solar Farm
A solar farm for community use can produce anything from 100 kilowatts (kW) up to 5 gigawatts (MW). A large-scale, communally-run solar farm is sometimes referred to as a community solar farm. Solar energy is generated by solar panels that are owned by the community and then sold to power plant. The customers of that power provider will see their electricity bill adjusted in accordance with the energy output from the community solar panels. This will lower a part of their monthly electric bill.
These are the 7 steps needed before you can start a solar farm
Before making an investment in a solar farm, there are a lot of things you should know. In order to start a solar farm that’s successful there are a few steps you must take.
The World’s Largest Floating Solar Farm
It is essential to conduct extensive research before you begin the solar farm. Here are the steps you need to do:
- You need to be aware of how much capital you can invest.
- Find out the cost per acre of solar panels
- Requirements for solar farmland
- Others who are interested in solar power projects
- Information about solar farm’s returns on investments
- How to deal with problems you might confront
Before you can start it is essential to have honest responses to the questions you have. Keep going and hope you’ll get some answers.
To help you comprehend the concept, we will give examples and alternative options.
Get your Business Plan ready
Once you’ve got the answers then it’s time to create an outline of your plan for business. Although you’ve got all the information about your business means that you must seek out expert assistance in the creation of your business plan. The plan will include an estimate of costs as well as an estimated ROI. The plan must cover at least 10 years of operation.
It is best to prepare everything ahead of time starting from the price of your supplier to your target market. It is possible to ruin the investment you made in a solar farm business in the event that you do not conduct your homework.
Requirements for a Solar Farm
It’s no secret that energy costs are rising across the nation, along with everything else. Depending on income bracket, this harsh reality can prove anything from an inconvenience to a true health hazard, when impoverished communities are forced to forego power in favor of other necessities – food, medication, rent – during periods of extreme heat or cold.
Happily, the 21 st century has proven that widespread solar power is more than a sci-fi theory promulgated by a select few. It’s a viable technology capable of meeting America’s power needs on a grand scale. “From just 0.34 GW in 2008, U.S. solar power capacity has grown to an estimated 97.2 gigawatts (GW) today,” the U.S. Department of Energy explains. “This is enough to power the equivalent of 18 million average American homes.”
In that time, the cost of photovoltaic panels has dropped. So has the price of solar electricity. Simultaneously, the number of jobs in the solar industry has skyrocketed. It’s a better time than ever to join the great solar race, leading many farmers and communities wondering, “How can I start my own solar farm or lease my land for solar?”
Glad you asked. Let’s take a look at the requirements for a solar farm so you can move forward with your clean energy goals today. However, if you’re a business, non-profit, or farming entity that receives a power bill, you’re in a different category and can take advantage of installing solar panels to offset your company electrical usage. Click here if that applies to you. If not, read on to learn about solar farms.
What Is a Solar Farm?
Personal solar panels are de rigueur in America. Unfortunately, many people and businesses don’t have the ability to install panels on their rooftops or in their backyards, meaning a huge percentage of the population is unable to benefit from the sun’s limitless potential.
The answer? Solar farms that can collect lots of energy in one place, then send it to the grid for public consumption. For our purposes, there are two main types of installation:
- Community-scale solar farm: While these farms vary in size, they share the common goal of providing power to a local community or commercial enterprise that backs the effort.
- Utility-scale solar farm: These solar farms are so named because they aim to provide clean energy to the grid, just like any power plant would.
Both types of solar farm need a way to produce the energy, then transmit it to those who need it. There are several other requirements for a solar farm as well – eight critical ones, to be exact. Let’s take a closer look.
Requirements for a Solar Farm
While solar technologies are now so widespread that they represent a viable energy option across the nation, there still a number of hurdles. Specifically, you need:
Sufficient Acreage
Solar farms require land on which to build. It takes about 4 to 5 acres to generate 1 megawatt (MW), depending on the panels and how much buffer land your local regulations require.
Also, you need space between panels for maintenance access and acreage on which to store inverters and other necessary equipment. While 20 acres might provide enough land for a solar panel installation, most utility-scale solar farms are on parcels of 100 or more. That being said, in many states, like California, there may be opportunities for farms as small as 5 acres.
The Right Kind of Land
Unsurprisingly, solar panels need access to the sun. That means large stretches of relatively flat, cleared land. Although flatter is ideal, photovoltaics (PV) can handle greater inclines and slopes if need be.
What does surprise some people? Use of land for other applications alongside solar power is not prohibited. In fact, co-solar is becoming more popular by the day, because it is such an efficient way to use valuable greenfield sites and agricultural property. If you have grazing sites, unused rows and borders, or flood plains, those may all prove all good places for solar panels.
Limited Incline
Flatness also makes a piece of land more valuable. While it isn’t strictly necessary for photovoltaics, land with a limited incline is ideal because it allows you to use solar trackers.
Trackers may move on one axis or more, enabling them to follow the sun as it passes across the sky and significantly upping potential energy production. Single-axis trackers increase energy yields by 30 percent, Again, while not a strict requirement per se, it’s a very Smart characteristic to prioritize in a property.
Land Ownership or a Power Purchase Agreement
It goes without saying that you must have the legal right to install solar panels on a particular piece of land. There are a few ways to accomplish this:
- Owning the land, developing, installing, and operating a power plant system yourself.
- Owning the land and leasing it to a company or developer for solar energy production (most common).
The first option to capture solar energy production is less common, as it is similar to developing and owning a business or large apartment building. Most will opt for option two, which is a much more hands-off approach.
Sufficient Capital
Solar farms are worth it, but if you want to install a system, you’ll need a significant amount of capital to realize the dream. According to Q3 2021 numbers from the Solar Energy Industries Association, very large utility fixed-tilt panel power plants (for example, 400 acres) can cost as low 89/Wdc (maximum watts with full sun exposure) and can cost as high as 3/wdc for smaller installations
A good way to get around this requirement is to consider leasing your land. If your land is a suitable site, a solar developer may offer you a worthwhile amount to lease the land on an annual basis for a solar farm.
Proximity to Infrastructure
Today’s technologies don’t yet allow us to collect energy from the sun and magic it straight to the homes and businesses that need it. As Arthur C. Clarke once said, “Any sufficiently advanced technology is indistinguishable from magic,” so we’re not ruling it out for the future. Today, however, we have to work with what we’ve got.
And what we’ve got is interconnection, the process by which we link up solar farms to nearby power grids. The further away the farm is from the grid, the more expensive this will be. Your solar farm will need two things in order to be viable:
- Proximity to three-phase power (1,000 feet or so)
- Proximity to a substation (2 miles or so)
Where neither of these exists, you will need to go through the lengthy process of getting infrastructure built, which while successful in many cases, involves lots of waiting. A solar development and installation company well-versed in these specialty project types can help advise further about meeting interconnection needs quickly and affordably.
Due Diligence
Laws help ensure that clean energy projects don’t do more harm than good, and you must do your due diligence to ensure that your proposed site doesn’t run afoul of those laws. They exist in many forms, including:
- Environmental regulations: You need to prove that your solar farm won’t harm wildlife or habitats nearby.
- Flood assessments: While solar panels can withstand heavy rain and flooding– and are intentionally constructed to do so – you must make sure that flooding won’t cause detrimental effects to the environment.
- Geology: Area geology also impacts whether a solar site is viable. For instance, regions high in fragile karst are often a concern, because changes to the topography (such as installing solar panel supports) can cause sinkholes or alter groundwater flow and quality.
- Visual buffers: While solar, unlike wind, is a silent renewable energy, communities still worry about the aesthetic impact of panels. Some areas require visual screens.
- Interconnection: Even if you are close to infrastructure, you’ll still need to get approval from authorities to link up with the grid. They will first conduct a study to ensure your solar farm won’t negatively impact it.
How It Works
Leasing your land to a company like Solar Liberty can seem intimidating, but we are upfront and clear about our process for your peace of mind.
Why California Built The World’s Largest Solar Farm
- We work with you to determine the ideal area for a solar farm and evaluate it for suitability.
- We then work with you and the nearby communities as well as state or federal authorities to develop a plan that benefits you and minimizes impact in your area.
- The permitting phase can be variable, but as New York’s number one solar installer, Solar Liberty has the expertise to shorten this window significantly compared to competitors.
- Once we’ve obtained the necessary permits, our experienced, trained, and NABCEP-certified installers set up the system on your land and connect it to the grid.
From there, you simply collect your profits from the previously unused land. Call Solar Liberty at (866) 807-3639 with any questions, or get in touch online to start the process.
Solar Could Be Your New Crop
Would you rather build your own solar farm rather than lease your land? Solar Liberty can help with that, too, with our expert team of designers and installers ready to build the ideal energy system for your goals.
Benefits of Owning Your Own Solar Farm
Why own your own solar farm? Here are just a few of the benefits to expect:
- You’ll own your energy-producing assets.
- You can use the energy you produce to power buildings or facilities on the land.
- You have the option to store your energy for later use.
- You can sell your harvested energy to the grid.
- You’ll be able to maintain complete control over your solar farm.
- Solar Liberty will handle any new tax burden imposed, making sure you are comfortable and well taken care of.
Does that sound good to you? Call Solar Liberty at (866) 807-3639 to learn more about the costs and potential profit associated with owning a solar farm on your own land.
FAQs on Large Land Plot Solar Farms
Who maintains the solar farm on my leased land?
You are not responsible for maintenance. The solar company you leased to will perform maintenance and repairs as required and as they see fit while you continue to profit from the lease.
Are there incentives for building and owning a solar farm?
Yes. The solar investment tax credit can offset the investment cost, and there may be other local incentives specific to your state.