Before you invest in a solar farm, there are a few things you should consider. In order to build a profitable solar farm, you must follow a few simple procedures.
1. Do Your Research
Before you start the solar farm, you need to carry out the research thoroughly. You need to:
- Be aware of the capital you need to invest in.
- Find out the cost per acre of solar panels,
- Solar farmland requirements,
- Other investors in solar power projects,
- Facts related to solar farm return on investment.
- Problems you might face and how to overcome them.
Remember, you need honest answers to all your questions before you can get started, so let’s continue with the article, and hopefully, we will answer some of your questions.
We will also provide you with examples and different options to help you understand the concept better.
2. Get the Business Plan Ready
Once you have all your answers, you need to prepare the business plan. Though you might have all the knowledge, considering the nature of the business, it is wise to involve professionals in developing the business plan. The plan will provide you with a cost estimate and an approximate ROI. The plan needs to cover at least 10 years of business.
It would be best to plan everything beforehand, from cost and supplier to your target market. Jumping into a solar farm business without doing your homework can affect your profit.
3. Legal Requirements
It is important to get legal backing for your farm.
Your company should be registered as a legal entity.
Once you have completed the business plan for your solar plan investment farm, you should begin the process of getting your business registered as a legal company. It is also important to get the permissions necessary for starting the solar farm. You might have to employ a lawyer to handle these processes for you.
4. Find the Land for Space
Solar farm companies need space to set up the panels. Thus, there is a requirement for land to get started.
Often a question arises related to the area required for a 1 MW solar power plant. At least 15 acres of land is necessary to start. Those who have the capital ready can purchase the land straightaway. If you do not wish to purchase, you might be able to lease the land. However, the leasing agreement should be for at least 50 years. This will ensure there will not be any need to dismantle the solar panels too soon.
You can also invest in a shared community solar farm where you can pay for a part of the land of the solar panel only.
5. Construct the Structure
Next, it is time to erect the photovoltaic power structures. You can find many companies to contract with the mounting of the solar farm. The company is also responsible for most of the renovation and maintenance tasks. It is preferred to work with a single company for such a long-term project. Working with many companies is overly complicated.
6. Send Out Proposals to Individuals and Companies
While construction is being carried out, many individuals or companies may come with inquiries about the terms of service. Once the structure is totally erected, you can get in touch with individuals, companies, and industries about the services you offer. Also, it is important to include the payment method and service costs of using the power from your solar farm.
7. Choose a Name
Last but not least, if you wish to start a solar business, do not forget to have a suitable name for it. You need to have a name that distinguishes it from all other companies offering the same set of services.
Starting a Solar Farm Business from Scratch
When you start a solar power business from scratch, you need to learn a lot about the industry. You must have knowledge about installation, different products available, and solutions for business owners and homes. It is also about building a good relationship with the suppliers and different sales consultants.
When you start a solar farm, market research and feasibility are quite important. Services of a solar firm are useful for the following industries:
- Hotels
- High schools, colleges, and universities
- Blue-chip companies
- Corporate organizations
- Television stations
- Households and individuals
- Sports facilities
- Financial institutions, insurance companies, and banks
- Religious organizations
- Distributors and manufacturers
- Advertising agencies
- Government (public works department)
- Publishing Houses or Printing Press
- Contractors, developers, and real estate owners
- Research and development companies
How to Start a Solar Farm Business – Important FAQ
How many acres of land are needed?
A small-size farm might be set up on a few acres of land. However, a large utility-scale farm might require hundreds of acres.
How does the electrical connection work?
The location of the land is extremely important. It needs to be close to electrical panels or power lines so it can be feasibly connected to a specific centralized power source.
How is the plan maintained and cleaned?
Cleaning the plant is important so the efficiency of the solar panels can be maintained. Often solar-powered robots are used for cleaning the panels.
Solar Industry Details
The industry of solar farm developers refer to a number of companies involved with the installation and construction of a solar power grid system, which is commonly known as solar farms. The work carried out includes repairs, rehabilitation, reconstruction, and also new work.
If you are thinking about starting a solar farm, you need to know a few facts about the industry and why it is a wise decision.
