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Solar Farm Profit Calculator

By SSK Admin November 09, 2022

Starting a solar farm has a wide plethora of benefits, one of which is the generation of income through energy sales. However, how much profit can you make off a solar farm, and does one calculate it?

Solar price calculators and off-grid solar calculators can be daunting to newbies, but don’t worry we will make it easier for you.

One of the wisest green energy decisions you can make is to use sustainable solar energy to power your home and appliances, while at the same time cutting back on harmful fossil fuels.

Solar panel systems were once a luxury only catered to those with thick wallets and a huge amount of available space on their properties. Thankfully, nowadays people all over the world can benefit from solar energy with more affordable and improved systems entering the solar market space.  

Additionally, these newer systems are smaller with the ability to even be attached to smaller properties and the roofs of electric vehicles.

One of the best breakthroughs in solar space was the implementation of solar farms, which allowed individuals to utilize solar energy without having the entire system installed on their property.

In this article, you will find out everything you need to know about solar farms and their associated profit gain, especially if you are thinking about starting your one and are trying to determine if it's worth it.

Let’s first clarify what a solar farm is.

What Is a Solar Farm

solar farm income calculator

Solar farms have been around for a long time, but people weren’t sure of how to get in on the newest solar trend.

Solar farms are a sizable collection of solar panels, usually in a massive plot of land. The solar array usually consists of photovoltaic solar panels that store solar energy and convert it into usable electricity.

However, other solar farms also used concentrated solar power or solar heating and cooling systems, instead of photovoltaic panels.

The electricity is typically delivered to a utility power grid for distribution to paying consumers.

Solar farms are commonly called solar parks or photovoltaic power stations. The panels are usually mounted to the surface of the ground rather than on household rooftops. The solar array comes in a variety of styles and shapes.

To put it simply, solar farms are similar to standard power plants, but instead of burning fossil fuels to generate power, they use the sun’s incoming light rays.

Before we can work out the amount of profit you can gain by getting into the industry of solar farming, let’s first discuss the two types of solar farms: utility and community.

Utility Solar Farms

solar return on investment calculator

The first type of solar farm is known as a utility farm.

Utility solar farms are the ones that you usually see taking up massive arid areas of land filled with thousands of solar panels. The panels usually produce around 2,000 MW of electricity.

Each solar panel performs the same energy-absorbing function and converts the stored energy into electricity that is tied to the utility grid. The generated energy is distributed through high-voltage power lines eventually reaching the homes of consumers.

Community Solar Farms

The second type of solar farm is called community solar farm and they are at a much smaller scale than utility solar farms.

They typically generated around 5 MW of electricity for surrounding houses in the community and local businesses.

The generated power is shared amongst consumers enrolled in the solar program. A community farm allows more individuals to benefit from solar without having it attached to their homes at a fraction of the price.

Residents participating in the program typically get reductions toward their utility bills.

Solar panels are usually installed in a plot of open land near the neighborhood areas that will be supplied with the generated energy.

How to Calculate Solar Farm Profit

commercial solar roi calculator

There is one formula that you use to calculate the profit you can gain from a solar farm, and it is incredibly simple to understand.

You only need 4 variables to work out your daily profit from a solar farm. The first variable you need is the total power generation of your solar farm, which is represented by the letter P.

The next variable you need is the average sun hours per day which is represented by the letter T. You’re also going to need the selling price of the electricity which we will call E and the daily costs which we will C.

Once you have all of that you can move on to calculating the solar farm profit, which you can do by simply multiplying the power generation, daily sun hours, and price of electricity together. Then all you need to do is subtract your daily costs.

Solar calculator savings is made easier by the formula below:

Solar Profit = P x T x E – C

Example

Let’s say we have a solar system that can generate 2,000 KW of energy and the area where the panels are installed has 6 average sun hours.

The selling price of electricity is the dollars per kilowatt and in our case, we are going to set a selling price of $0.68 per kW. Lastly, we are going to need our running costs, which in this example equates to $250.

Plug all that into the formula above and we get a profit of $7,910 per day from a small solar farm. This is a good return on investment and if you are in the position to get yourself a solar farm you can easily make your money back quickly.

Conclusion

Solar panel return on investment calculators is becoming more important, especially for owners who are wanting to quickly work out their profit gain.

calculator solar farm profit

Solar farms have been around for a while and many more individuals worldwide are starting to enroll in these solar programs to play their part in reducing the burning of fossil fuels.

Solar farm system technology will continuously improve with more affordable systems soon making their way onto the solar scene.

For additional advice on solar farm profitability or general solar inquiries, please visit Shop Solar Kits. We will be able to assist you with all your solar concerns and pricing, as well as provide you with options for solar power generators for your own home.

Now is the time to go solar and put a smile on the face of mother nature.

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