Solar Farm Profits Per Acre

However there are some solar farms that span hundreds of acres netting property owners.

Solar farm profits per acre.

According to the solar energy industries association commercial prices to install solar have fallen by 58 since 2012 and by 16 in 2016. On average 1 acre solar farm cost about 500 per month to lease in the united states. In 2016 solar made up 39 of all new electric generating capacity. Solar farm acres per megawatt.

Therefore contractually fixed rental rates on a per acre basis are the most common structure for solar farm land leases. Royalty structures where the landowner shares in a percentage of project revenue are common in upstream oil gas leases. Solar farms are especially interesting for american farmers since depending on the crop solar farm profits from photovoltaic panels could end up being far greater than traditional farming practices especially in the right climates. However solar energy production should be predictable and consistent over time.

Agreeably solar farming can be quite lucrative for some landowners as most solar installations require at minimum 4 acres of useable land. The cost of land for 1 mw plant will therefore translate to 2 500 per month on average. On the average the solar farm profit per acre is somewhere between 21 250 and 42 500 on an annual basis. For example the solar farm land requirements for a 1 megawatt solar plant is around 5 acres.

This made up 1 4 of u s. By 2020 this level is slated to surpass 3 of total u s.