Starting A Solar Farm: A Guide
Solar Farm: In terms of capacity, the solar farm sector achieved new highs in 2021. In comparison to wind farms and natural gas projects, solar farms were expanding more quickly. The solar sector was the most popular new utility in 2020.
As technology catches up to the trend of solar energy projects, the cost of installing solar panels has been gradually declining. Solar energy is a well-liked option for sustainable energy because solar farms don’t produce any emissions.
Do you intend to launch a solar farm of your own? We have the data you require.
A solar panel farm: what is it?
Solar farms can be divided into two categories:
Solar photovoltaic power plants: A power plant is made by combining several solar panels.
Mirrors are used as solar modules in CSPs, or concentrated solar projects, to reflect sunlight into a central collector where it is then absorbed.
In either case, the solar energy is linked via a power connection to a utility company-owned electricity system.
The scale and use of solar farms vary from those general categories. Look below:
Different Solar Farm Business Models
Although the technology is comparable, the size of the solar power installations varies. Although CSPs exist in the US, photovoltaic power plants that employ solar panels to collect electricity are the most popular solar project. then employ power cables to connect the photovoltaic power plants to connect.
Utility-scale solar power plants
Utility-scale solar farms generate at least 1 MW of electricity. Utility size solar farms often produce up to 2,000 megawatts and are substantially larger. In the US, there are currently over 10,000 utility-scale solar generating farms.
One megawatt can power 200 homes, giving you an indication of how much energy a utility-scale solar farm can generate.
100 kW to 5 megawatts are produced by a community-scale solar farm (MW). A significant solar project is a community solar farm. Solar energy is generated by the community solar panels and sold to power plants. Based on the electricity output that the community solar panels provide, the customers of that power company subsequently have their energy bills altered.
How Much Does It Cost to Start a Solar Farm?
Ground-mounted solar array construction prices typically range from.82 to 1.36 cents per watt. In other words, it costs between $820,000 and $1.36 million to establish the infrastructure for solar installations that are 1 MW in size.
In addition to other costs, that calculation takes solar installation construction costs into account:
$30,000. Negotiating approval to connect to a bigger electrical grid using high-voltage power lines.
Insurance for the solar industry: $23,000
What about modest solar infrastructure, like rooftop solar gardens? Approximately $2.84 per watt more is spent installing rooftop installations. Less than 20 kW of electricity will normally be produced. Rooftop installations are popular among solar developers that lack the space required for large-scale solar production, despite the fact that the power produced is less.
Are Solar Farms for Renewable Energy Profitable?
Yes. Power Purchase Agreements are how a solar farm generates revenue. The solar farms that provide wholesale power were making $24 per MW with the PPA.
Solar farmers might receive a 26% investment tax credit through 2022 against the cost of investing in new solar technology. The investment tax credit may or may not continue in subsequent years depending on the requirement for clean Probably, techniques to supply energy.
18 Crucial Steps to Launch Your Solar Farm Business
Large distances are covered by solar panels. Although a solar farm needs a lot of space, keep in mind that ground arrays are less expensive to install than solar parks on rooftops.
On industrial or agricultural land, solar systems can typically be built according to zoning regulations. If not, you might need to hold a public meeting to request a “special exemption” from the planning and zoning municipal boards in order to build a solar program.
You can check the websites of electric providers to see how much of their energy, in percentage terms, comes from non-traditional sources. Your research won’t be useful if they already purchase energy from a solar farm.
To be a successful solar farm, you’ll need to be able to negotiate with utility companies. When you expand your research into other solar projects, you may learn the names or names of companies who have been successful in completing this very necessary step. Tron Solar in Illinois is a great example.
2. Get Professional Certification
As an investor, you don’t need professional certification. But hiring a solar energy business consultant is a must.
To learn more about key positions necessary for a successful solar panel farm, check with the Solar Energy Industries Association.
Markets include both rural and urban residential electric companies. Some solar projects are specifically for educational institutions or specific large industries.
Choose several business names. That way, before you settle on a name, you can check to make sure the web domain for that name is available, and that a business by the same name hasn’t already been registered in your state.
Here are key elements of your business plan:
Company Information: Management
Executive Summary – How the company will be organized and managed.
Customers – Residential, business or educational.
Plans for management from construction to operations
Long-range operating plans, including maintenance, financials and expansion.
Set up your website and launch your social media presence.
7. Form a Legal Entity and Register
You have a couple options and should enlist the advice of a tax specialist. You can operate the business as a limited liability company, a partnership or a corporation (s-corp or c-corp).
8. Open a Business Bank Account
You’ll need a separate bank account for your business and also a separate business credit card.
As we stated, most solar energy projects need plenty of acreage. And of course, that acreage must be suitable for solar business, such as agricultural or industrial. As a minimum, you’ll need at least 20 acres.
10. Make Sure Your Land is Suitable
What if you’ve found a large tract of suitable land, but it’s heavily wooded? Can you remove most or all of the trees, or are there restrictions on timber activities?
Is the land flat or rolling? For what percentage of daylight hours does the area receive sunlight?
As with most businesses, you’ll need general liability insurance.
As your project develops, you can also choose “full risk” protection. For instance, the system’s components will be covered while being transported to your site, installed, tested, and put into service.
You’ll be covered by additional insurance coverage if you need it for business interruption and equipment failure.
12. Purchase the Equipment You Need
Racking (to hold panels, frequently timed to shift with the sun) (to hold panels, often timed to shift with the sun)
Monitoring system performance (to notify users if there is a problem)
Grid-connection hardware
Battery storage apparatus
System of property security
maintaining the grounds (to keep vegetation from growing within the solar equipment)
Once you begin hiring staff, you will want an EIN (employer identification number) in order to properly file your taxes. Engineers for installation, a manager, solar consultants, maintenance experts, and customer service agents are required.
When paying annual business income taxes to the IRS, you’ll also use your EIN. Payroll taxes will be due.
Your acreage will be subject to property taxes.
Here’s where things may get dicey with tax assessment. Your panels and equipment may be considered personal property if they are simple to remove (including for maintenance or replacement). If a tax assessment board regards the panels and equipment as permanent, the item will be taxed as real property (a significantly higher rate) (a much higher rate).
15. Obtain a license, and permit
Your greatest permit, after receiving the go-ahead to construct and run your business, will be for interconnection with the electrical grid. Your solar consultant or an attorney with experience in the application and negotiation processes should handle this.
16. Create Your Own Solar Farm
Plan a groundbreaking solar installation ceremony and invite local media to help you establish your brand.
You’ll need fences in addition to the necessary equipment for your solar power plant. With solar panels installed, you’ll require security and property upkeep.
17. Market Your Business
Here are crucial aspects of your marketing plan: sales strategy, continual market analysis, long-range planning, and industry participation (visit local and national solar power conventions) (attend local and national solar power conventions).
Join the Chamber of Commerce in your area.
18. Your solar farm business should grow
A savvy solar entrepreneur utilizes annual profits to buy more acreage. You cannot grow without land.
