hello welcome to shawn academy today in
this video we're going to learn how to
start a solar farm business
my name is james and i will be your
business consultant in this video
now before we start a solar farm
business let's take a closer look at
what goes into starting one and how we
can make yours profitable
a solar farm is a large plot of land
with multiple ground-mounted solar
tracking towers installed
it is usually on a working farm or other
open mostly unimproved
land the solar farm developers industry
is made up of companies that primarily
install and construct utility-scale
solar power grid systems known as solar
farms
work performed in the industry includes
new construction reconstruction
rehabilitation and repairs among other
things
solar is america's fastest growing
renewable energy source
producing enough clean reliable and
affordable electricity to power more
than 2.2 million homes
solar has generated tens of thousands of
new american jobs and injected tens of
billions of dollars into the american
economy
in fact more solar has been installed in
the united states in the last 18 months
than in the previous 30 years
over the last five years the solar farm
developers industry has exploded
demand for new solar farms has been
driven primarily by government
incentives
such as the solar investment tax credit
which provided tax breaks to encourage
private investment in solar technologies
solar farms and other solar power
development projects have been built at
an increasing rate over the last five
years as a result of these incentives
this is due to the fact that solar
technology is not yet cost competitive
with other types of energy used in power
generation
let's look at the costs of establishing
a solar farm
when starting a solar farming business
landowners should consider a number of
factors
to connect and run your solar project in
parallel with the utility grid
you will need to obtain permission from
the local utility company
in some states obtaining permission to
interconnect can cost
up to thirty thousand dollars on a large
scale your solar farm should have a
minimum capacity of one megawatt which
is enough to power approximately 200
households
a one megawatt farm typically costs
around 1 million dollars to install
this includes the purchase of land solar
equipment
the establishment of an office payroll
and marketing
leasing land to a utility company is a
more cost-effective option for solar
farmers with limited startup capital
the cost of installation and maintenance
of the panels is covered by the utility
company with which you have partnered
while the profits are significantly
lower with this option the initial
expenses are also significantly lower
let's look at the ongoing costs of
running a solar farm
mortgage insurance property taxes
licensing
and attorney and financial advisor fees
are all ongoing costs for your solar
farm
those who provide services other than
land leasing must also consider payroll
costs
increased insurance costs travel
expenses and continuing education fees
it is critical to understand your target
market it is a common misconception that
solar farms are only needed by utility
companies
if you do not want to lease your land to
a utility company
consider contacting the following
organizations financial institutions
manufacturers and distributors blue chip
companies
real estate developers and contractors
public works departments
sports facilities and television
stations
the best way to make money is to lease
the land to a utility company
in exchange for the use of your land for
an agreed-upon period of time
they pay you an annual lease payment a
variety of factors
including the size and quality of your
land as well as market demand and local
land prices
will influence the least rate your land
can yield farms produce between 500
and 800 per acre per month on average if
your 100 acre land lease pays 700
per acre per month your solar farm could
bring in 840
000 per year solar farm owners who want
to increase their profits should
consider using their annual profits to
buy more land
continuing education and the appropriate
certifications may also assist a
business owner in expanding their
services
making them more valuable to current and
potential clients
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