Profitability of a solar farm. Profits from a solar power plant
Dodane przez: Kamil Kołosowski March 14, 2022
Investments in photovoltaics are a venture that requires large initial capital, but due to the dynamically developing sector of energy services, it seems to be a beneficial solution for entrepreneurs looking for new paths to develop their business. As for, when the solar farm starts to earn for itself, the profit is observed only after a few years of its operation. However, there is no indication that the situation in this respect will worsen, on the contrary – from year to year solar panels are gaining in popularity, so they are an increasingly profitable investment.
Profitable solar farm
The profitability of a solar farm can be seen after about 10 years. However, at present the prices of the components necessary for the construction of photovoltaics are about 50% lower than those 10 years ago. Thus, when checking whether the investment in photovoltaics pays off, one should take into account the most recent data and make a business plan based on them. When it comes to the business of a solar power plant, the profitability of this project can be considerable, especially since a large part of the funds for its installation can be obtained from various subsidies – for example, Regional Operational Programs. Currently, for the production of one megawatt-hour, you can receive PLN 235-250 and this amount is supplemented by state support in the appearance of RES auctions and the amount of this support depends on the results of the auction. For example, in 2019 the auction was held at PLN 325 for 1 megawatt of energy produced. In this case, additional income is generated thanks to the price difference between the price on the stock exchange and the actual sale price. In total, up to PLN 400 net can be obtained for 1 MW. This means that by producing, for example, 1000 MWh per year, you can earn up to PLN 420,000 for yourself. The million-dollar investments in photovoltaics pay off after only 7 years, during this time they become entities that independently pay off credit obligations incurred for the purpose of building a farm.
Solar farm – a business that pays for itself
Investors who are interested in a solar farm will be able to notice the profit on their investment after the first year of its operation. For safe calculations, it is assumed that the farm works for about 1/3 of the year, because only then can you count on full sun exposure and the production of the maximum possible amount of electricity. In order to obtain the highest possible revenues from photovoltaics, it is necessary to choose the right place to install solar panels, but also to check the local zoning plan. This is because solar panels require full access to the sun to function properly, so they cannot be obscured in the future by tall buildings or other building structures. In the case of an investment such as a solar farm, the profit may be clean, but it requires the collectors to work continuously with the best possible results throughout all the warm days of the year. Even a slight shading of the panels can cause a few percent decrease in the efficiency of photovoltaics, which in the case of large solar power plants can contribute to enormous financial losses.
Is the investment in photovoltaics profitable?
The profitability of a solar farm depends on many factors – both economic, political and environmental. If you are interested in an investment, which is a solar farm, the business will turn out to be profitable when we take into account the above-mentioned aspects. However, assuming that solar panels will become more and more popular every year, their construction will be less expensive, and therefore the whole will become a profitable investment. The most profitable, of course, is in the case of giant farms focused on the commercial use of electricity obtained from the sun, for example to power large factories or support local government budgets. Although the payback process of a construction requiring enormous start-up capital takes years, it cannot be denied that even taking into account the cost of servicing the panels and their maintenance, it is still a one-time investment that can generate money for many years to come. By far a necessary factor for this to happen is the execution of a professional farm construction plan and the conceptual preparation for it, which can be a process that takes even longer than the installation work itself.