We are in process of making 2 megawatt solar farms (two separate locations) on properties our family owns. I just wanted to thank Denny for his tax contributions, so our country can have "clean energy" and our family can make around 1 mil every year. Thanks for the subsidies!
How are you coming up with $1M per year off of 2MW of solar capacity? Even at 100% utilization, you'd have to be paid $0.06/kw-hr.
It's actually a good investment. The cost of industrial solar is around 2.06 a kilowatt; so a megawatt plant is around 2,060,000. SCE will pay us 360,000 per year for the electricity to feed the grid. That is a 8 year return off investment. The advantage is the property that was appraised at 260k; will now appraise at 2.4 million. I don't know why more people aren't jumping on board?
Oops, sorry, I meant $360k. The return is 8 years off investment. I don't know what i was thinking when I posted the OG
I'm curious... Why do you think 8-year ROI is that great? That is 9% per year return. But are you including property taxes, income taxes? What do you assume for maintenance costs and employees to maintain a 2MW plant? If those additional costs reduce your 9% yearly return to, say, 5-6% yearly return, you could do better elsewhere with no work.
A solar farm doesn't require as much work and the property can generate income. Building homes in those areas are still a little too expensive these days. It's cheaper just to buy used homes. Also the federal tax credit saves us about 40% on investment; which is a huge tax credit!
Interesting. Is your 8-year ROI already accounting for the 40% tax credit on the initial capital? How do you generate income on the property other than the solar?
We were thinking about leasing the property for farming; but we would have to install a well. It cost around 180k. The land lease isn't much. Here is an interesting link for you to read http://www.dailyfinance.com/2012/09/12/solar-stats-that-will-blow-your-mind/
You should be careful to look into the possibility of solar flooding the market. I looked into installing rooftop panels and the Massachusetts solar market had crashed over the past six months or so. Basically so many people installed panels that traditional power companies could buy their environmental quorum for nothing. If I had my way, we'd just increase the solar requirements -- I'd much rather pay more for energy than for flood insurance or chemo when I get lung cancer from the remaining coal plant by my house. Just something to consider.
Also, look at this link. It's a summary of the tax credits for solar farming... http://www.wholesalesolar.com/federal-tax-credit.html Here is the list of government incentives. http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US37F&re=1&ee=1
I still don't see how the math is working. I'm not trying to be an ass, just trying to understand. $2.6 / watt to build the solar infrastructure is an investment of $5.2M for 2MW. You said you will be paid $360k per year. That is 6.9% yearly return or 11-year ROI, but is ignoring the cost of the land, property taxes, maintenance, etc...
That is interesting, but I live in the high desert. I think we get something like 10-15" of rain per year.
