November 14, 2022
Learn about your home or business’s potential solar energy ROI from the experts at PES Solar. Call 800-650-6519 today.
Whether you’re an investor looking to diversify your portfolio or a homeowner searching for ways to reduce your energy bills, you can benefit from investing in a solar farm. Unlike individual residential systems, solar farms generate power for groups of homes, businesses, or other industrial and commercial enterprises. Not only will you contribute to advancing renewable energy as an investor, but you can also enjoy a significant solar farm ROI.
If you’re ready to get started right, visit this guide to starting a solar farm. Otherwise, keep reading to learn about the average solar farm’s costs and potential return on investment (ROI).
How Much Does a Solar Farm Cost?
Building a solar farm involves a significant initial investment that includes the price of the land, equipment, and installation. Not including the land, the average 1-megawatt solar farm costs between $800,000 and $1.3 million to build. This may seem very expensive compared to the average residential system cost of $25,000, but the average price per watt decreases from around $3 to about $1.05 for commercial solar farms.
What Is the Average Solar Farm ROI?
On average, solar farm ROIs range between 10 and 20%. Your exact ROI will depend on your local weather, the initial installation costs, the size of your solar farm, the panel type, and many other factors. For example, you may make a higher ROI if you live in a very sunny climate or invest in solar panels with maximum efficiency.
On average, a 1-megawatt system that spans around seven acres earns a yearly revenue between $20,000 and $60,000. Exact profits depend on the local utility companies and what they pay for alternative energy sources.
How Long Does It Take to Make a Return?
You’ll start making a return on your solar farm investment once you pay off the initial costs. For most solar farms, this takes between five to ten years.
Some community solar farms opt to lease land to solar developers rather than purchase the equipment outright so that they can make a return more quickly. Though faster, lease ROIs are lower due to ongoing leasing fees.
The time it takes to make a solar farm ROI also depends on how long it takes to build it. Your solar project may only take months to complete or years if you need to navigate any legal hurdles.
Professional Solar Panel Installation in Florida
You can learn more about your potential solar farm ROI by calling PES Solar. We’re a top solar company with more than 20 years of experience installing systems across Florida. We’ll share the key benefits of going solar, including the solar panel tax rebate and other cost savings, and help you realize your solar project’s revenue potential with expert installation.
Get in touch with us today by calling 800-650-6519, or use our convenient form to schedule a consultation online.