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

With time, Solar Panels are becoming more and more popular. This is due to the fact that they are one of the most useful and efficient ways to produce renewable energy. Unlike wind power or hydroelectric power, Solar panels neither need water nor high wind speeds. Here we will see about How Much Money Does 1 Acre of Solar Panels Make Per Year?

Solar Panels built on 1 acre (4047 square meters) of land can produce approximately 351 MWh of electricity in a year. The amount of money that can be generated through this much electrical energy depends on a variety of factors. However, the typical amount generated is approximately $21,000. To purchase and install enough Solar Panels to fit in an acre can cost as much as $45,000.

There are many factors that affect the amount of cash generated through solar panels.

  1. Availability of sunlight
  2. Distance from the power grid
  3. Using solar tracking
  4. Soil Quality
How Much Money Does 1 Acre of Solar Panels Make Per Year?

Availability of sunlight

For solar panels to function, a constant supply of sunlight is necessary. The more sunlight you have, the higher the electrical power the solar panels will generate and the higher you can earn from it. For example, Yuma, Arizona, has a much higher chance of producing a lot of electrical energy as it has 4300 sunny hours per year as compared to Wash, which only experiences 60% solar radiation.

Distance from Power Grid

The Power Grid is a series of power lines that are used to transport electricity from power-generating areas to areas where the power is needed. If the place of the plant is near the power grid system, you will not need to build a transportation system of your own. There may be some fee for using the existing power lines, but the cost is still less when compared to building and maintaining a separate Power Grid.

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Using Solar Tracking

Solar Tracking technology is a comparatively new applied science that enables solar Panels to detect the sharpest angle of the sun and move in that direction to produce more energy. According to some data, the solar tracking system can help in producing an extra 25-30% of electrical energy. Although installing extra solar panels is cheaper than using this technology, it is useful when there is a lack of space.

Soil Quality

Although soil quality may not seem important, it plays a vital role in solar panel installation as solar panels need a firm base on which they can be mounted. If the soil is already firm, it reduces the installation costs by a margin and therefore enables the owner to invest the saved money in a technologically better solar panel that produces more energy.

There are two ways to earn from installing solar panels on a one-acre land. The first method is to set up the Solar System by investing your own money in the venture. This method is by far more profitable as it enables the owner to reek in the full benefits of the land without having to share any income with anyone. However, this method can be risky as well as very capital-intensive. A person who has set up his own Solar system can earn approximately $21,500 each year. 

The second method is to lease out your land to professional solar companies on rent. This way you are not responsible for any damages caused by natural disasters and can get a stable income per annum. If you are opting for this method, you can expect to earn $2300 per acre of land.

Some problems that reduce the efficiency of Solar Panels are listed below.

  • Shading can cause a loss of up to 7% of the total efficiency of a Solar Panel. This problem is caused by poor design and untimely maintenance
  • Dust and Dirt accumulation can cause a loss of 2% efficiency. This issue is predominant in areas with a lot of wind and dust and can be solved by cleaning the Panels regularly.
  • Excess heat can reduce the efficiency of Solar Panels by as much as 10%-25%. This Heat can often be a cause of poor design and placement of the solar panels.

To conclude, building solar panels on land that is otherwise unneeded can be a very good idea as it not only generates money but also solves one of the world’s biggest crises of non-renewable energy. Through this article we have learned about How Much Money Does 1 Acre of Solar Panels Make Per Year?


Q)How many Solar panels can fit in 1 acre?

A)Theoretically, you could fit 740kW worth of solar panels in 1 acre if you do not account for walking space for maintenance work. An ideal amount of solar panels with proper spacing should allow the generation of 435.6kW.

Q)Is building Solar Power on your land better than agriculture?

A)Building Solar panels may be better than practicing agriculture as Solar plants do not require much maintenance after their initial installation. Moreover, government concessions give solar plant owners a lot of benefits. Additionally, Solar plants can be set up on unfertilized land that can not be used to grow crops.

Q)In how many years can you make back the investment in Solar Panels?

A)Due to the wide range of factors that affect Solar Panel profitability, it is hard to predict the Return on investment for a one-acre solar plant. On average it could take between 8 to 12 years.

Q)Do you need licensing for a Solar Panel business?

A)Solar Panel Businesses can be considered normal businesses and may need Licensing, Insurance, and Permits

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

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