How Much Money Does 1 acre of Solar Panels Make?

03/17/2022

Nowadays, more and more people choose to buy and install solar panel. On one side, they can use solar panels to produce electricity. On the other hand, they can help them to save a lot of money. 

As a general rule, 1 acre of solar panels produces about 351 MWh of electrical energy per year. The actual profit depends on the Country and State/location irradiance (Peak-sun-hours), but the average is approximately $14,000. Installation cost for 1 acre of solar panels is about $450,000.

How Much Power Will 1 Acre of Solar Panels Produce?

  • How many solar panels can be installed on one acre
  • Irradiance or peak-sun-hours for the geographic location

How Many Solar Panels Fit in One Acre?

There is physical room for about 740kW of solar panel surface on one acre, but the panels are mounted in rows with walk spaces allowing for maintenance, so a form factor of 0.58  is applied.

In general, 1kW of solar power can be fitted into 100 square feet. There are 43560 square feet in an acre, so the possible solar power can be found by:

43560/100x1kw= 435.6kW

Solar farms are installed in locations with high irradiance (peak-sun-hours) values, such as Nevada. The Peak-sun-hours value for Nevada is 2348. (Also measured as irradiance in kWh/m2.)

What Are the Losses That Occur in a Solar PV Project?

How much power does one acre of 500w solar panel produce? Unfortunately, we don’t get all the power out of a solar system that the formulae tell us a system can generate. All solar PV systems have losses, some of them we can influence and others we can’t. Solar PV losses are one of the leading disadvantages or cons of solar.

How Do Solar Farms Raise Money?

A land-owner can make money from solar panels in two ways:

  1. Lease his land out to a solar company who will mount, maintain and organize the installation, handling all contracts with the power company. The owner is then paid an annual profit based on the contract.
  2. The land-owner may opt to buy and install the solar panels himself. The initial capital cost is much more but the profits are greater.


How Much Money Does 1 Acre of Solar Panels Make Per Year? Solar Farm Profit

Based on my previous calculation 1 acre of land would produce in Nevada about 351.3mWh of enegy per year. So how much money is this amount of electrical power worth?

Compared to a domestic solar installation, this is a huge amount of energy and it isn’t sold back to the utility companies as it is with home solar. Solar farm output is traded by mWh price in specialized markets, so revenue can fluctuate a little.

How Much Do Landowners Get Paid for Solar Panels?

A very simple option for a landowner is to simply lease the land to the solar farm operator. The amount earned per acre varies a lot, due to a number of reasons:

  • Are there any government or other incentives in the State?
  • Level of land prices in the area
  • How far is the nearest grid connection?
  • Is there a demand for solar power in your State?

A landowner can expect to earn revenue of about $2300 per acre of land leased to solar farm operators. Depending on the estimates of solar power generated in that location, solar farm profit compares very well with other farm-based business.