There are multiple reasons why you may be considering having your own solar farm. You might be concerned about our environment or see electricity production as a way to earn some money. Either way, there are some critical things you need to consider before starting a solar farm to know exactly how much money can a solar farm make.
As we move forward into the future, solar power will become a more significant percentage of the world’s energy source. You will play a vital role in getting humanity away from fossil fuels and nuclear energy. Anyone who invests their time and money into solar is doing something that very well could change the planet as we know it.
If you are interested in knowing “how much money can a solar farm make?”, consider these 5 important factors.
1. Size of Your Solar Farm Plays a Crucial Role in Its Profitability
Size does matter when it comes to how large your solar farm is. The larger the landmass you have to work with, the more solar panels you can set up. You may run into restrictions when it comes to how large your solar farm can be.
Even though there is no environmental impact do to solar farming, you should always talk to your local authorities to make sure that you fully understand how large of a farm you’re allowed to create. Some people will make the mistake of thinking that they can put solar panels on any size area, and that may not be true.
Local ordinances vary from region to region, and that’s why it’s best to talk to someone in your area and not rely on what you read on the internet.
2. Property Taxes Eat Away at Your Profits
Property taxes are another one of those strange things that can be different from one town to the next. Taxes are an often overlooked expense when it comes to operating any business. Compare the tax rates of other towns to see how they compare to where you live.
Should you build your solar farm in a location where the taxes are cheaper?
There are other factors involved than only property taxes, and they are one thing that you should consider. The other factors are the cost of labor, how much you’ll spend to commute, and the cost of land. All of these factors must be calculated to determine if property taxes alone make one area more suitable than another.
3. How You Finance the Purchase of Your Land and Solar Panels
Almost everyone reading this will finance their purchase of land and the solar panels themselves through the use of credit. Not all credit is created equal, and you’ve got to be careful when it comes to interest rates. It shouldn’t need to be said that financing your solar business using credit cards is a bad idea.
But, equally bad, is going into the business, not knowing what your credit options are. Try your best to get loans with the smallest percent of interest possible. Shop around and see which lender is willing to bend over backward to make you their customer.
Paying back your loan as quickly as possible is also a must so that you can avoid paying interest on your loan.
4. Age of Your Solar Panels Plays a Role in Their Productivity
Technology is continually changing, and that means you’ve got to be careful when buying solar panels. You might think that buying older panels is a wise investment, but in the long run, it could cost you money. The increases in solar productivity happen exponentially, and panels that are a few years old will not produce the same amount of electricity as new ones will.
Do your homework and ask yourself if buying older panels is worth the investment. It’s probably only a good idea to buy previously owned solar panels if you can purchase them at a steep discount. Deal directly with the manufacturer and see what kind of deals they can give you before going the route of buying second-hand panels.
5. Going Rate for Electricity in Your Area
The cost of electricity varies depending on where you live. You already know how much you’re paying for electricity. The mistake people make here is they go online and see prices for electricity that aren’t in their area. If you’re in Maine, then the prices for electricity in California are useless to you.
The same thing could be said about someone living in France who sees the cost of electricity in Germany. How much money you can get out of your solar panels has to play a crucial role in deciding if this is right for you.
Electricity is something that’s always in demand, and the value of it will never be zero. However, the cost of energy in your area is a significant factor in if your solar adventures will be profitable.
Solar Is Where the Future Is
You made the right choice to become interested in generating solar energy. Now the only question is how profitable it will be for you. You’re still competing with the big boys who pump out more electricity than any solar farm is currently generating.
It won’t be too long until the world gets the vast majority of its energy from the sun. Will you be on the cutting edge of technology and deliver this cleaner green energy to your community?
The future of civilization itself hinges on how energy needs and how we go about producing it. Now is the time to harness the power of the sun and to cement your future in the world of solar.
Check with your local and federal government to see if there are any credits, grants, or tax breaks for those entering into the solar arena. Governments all over the world are being proactive and trying their best to generate as much interest in clean, renewable energy as possible.
You might find that your government is offering subsidies or even lines of credit for those who are entering the solar market place. Do a quick Google search for any programs in your area and then reach out to whoever is in charge to see what you might qualify for.