Approximately 4 to 5 Crores Indian Rupees and thousands of heliostats( mirror) are required as 25KW can be generated through one heliostat, so 1 MW can be generated by....
Solar Farm Cost: The Actual Cost and ROI of Solar Farms
According to Ada Garcia, there are two ways to consider the cost of the solar farm project.
Cost Per Acre
A 1-acre solar farm costs approximately $400,000 to $500,000 to set up. Although the upfront cost is high, the maintenance costs afterward are negligible. So you will get good returns in the long run.
Cost Per Watt
The solar farm cost per watt is about $0.8 to $1.36. One megawatt is the same as one million watts. So the cost of setting up a 1-megawatt solar farm will range from $800,000 to $1.36 million. With this power, the installation can run about 200 homes.
Total Cost
Investing in a solar energy farm is pricey. You need about 6-8 acres to build a 1 MW solar energy farm. Using the average cost of $450,000 per acre, you are looking at $2.7-$3.6 million. This cost covers all the components, which include the following.
· Solar panels
· Battery storage
· Panel holding racks
· Rack foundations
· Connectors and cables
· Inverters
· Monitoring systems
· Panel to the grid and battery connecting equipment
· Security equipment like cameras and fences
Labor costs will take about 10% of the total project cost. Also, you must develop the land. And if you have to factor in the price of buying or leasing land if you don’t have it. As for maintenance, you need workers to clean the panels regularly and cut any vegetation that blocks sunlight.
Solar Farms Cost Reduce Tips
As a solar farm developer, you can make about $14,000 to $40,000 annually per megawatt. And you can minimize your domestic power costs by up to 15% yearly. Although the return on investment looks good, you can lower your initial investment further and increase revenues using these tips.
.Factors Affecting the ROI
As you might have noticed, solar farm returns vary by a wide margin, which affects the ROI. Factors that affect the earning potential of the solar garden/farm include the following.
Amount of Sunlight
The sun’s intensity directly affects the generated solar capacity. Therefore, areas with cloudy/rainy weather or a few sunny months in the year will extend the installation’s payback period.
You can take measures to ensure the solar farm output is as high as possible. For instance, consider using single-axis sun tracking or solar tracking equipment to keep the panels facing the sun throughout the day.
Also, ensure the bushes under the panels don’t overgrow to cover the solar cells and keep the solar surfaces clean.
Land Size
Solar farm operators with large acre fields have better economies of scale, so their returns will be higher. Generally, you need about 100 square feet of land to generate 1kW.
Remember, you need space for non-solar equipment to support the system. The ratio of land used for non-solar equipment to the area under solar cells will be higher in small community solar plants than in large ones.
Therefore, utility-scale solar companies with larger farms will have more acres of land under the solar, resulting in better economies of scale and higher profit margins.
Proximity to the Electrical Grid
Besides the land size, the solar development project will require less infrastructure to connect it to the national grid if it is closer to the power lines. Ideally, the piece of land should have the following features.
· Good road access
· Be less than two miles from a substation
· Be at most two miles away from a substation
Terrain
The land type or terrain also has an impact on the development cost. Solar installations require flat land. So if the parcel has trees, buildings, obstructions, or hilly spots, you must spend more to clear and level it.
The process will increase the budget and lower the return on investment.
You could check the (free) SAM software from NREL and related tutorials as a good starting point https://sam.nrel.gov/
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