Most people are more familiar with solar panels mounted on the rooftop of our house to solar farms but the truth is that both the solar panels in our homes and solar farms serves the same purpose but in varying degrees.
The solar panels in our homes are single panels mounted on the roof that gets energy from the sun (solar) and converts it into Alternating Current (AC) for use in the house, while solar farms which is also known as Photovoltaic Power are a large area of land where solar tracking towers are mounted to provide power to a large number of people.
Building a solar panel is a capital intensive business as estimate shows you need at least 1 million dollars to start a solar farm; but the Returns on Investment (ROI) are worth it at the long run. Solar farms will be the major focus of this article; also I will discuss issues like why people prefer to use the services of a solar farms than mount their own panels, and how you can start up your own solar farm.
3 Reasons Why People Prefer to Use a Solar Farm
- Cheaper Option-: Using a solar farm is a cheaper option for people since they don’t have to pay for the cost of installation of the panels, and the regular cost of maintenance for the panel, they just have to pay the annual fee to the solar farm company and enjoy electricity throughout the year. This is also a very much cheaper option than using electricity from power companies.
- Equal Power Supply 24 Hours a Day-: If you are using the single solar panel mounted on the roof, you will notice that some hours in the day when power is low; but solar farm are built to trap energy and give the same high power supply through out the day.
- Structure of the House-: Mounting a solar panel in the house most time involves dismantle some structure on the roof to get a better position of the sun. People prefer to subscribe to a solar farm company to avoid the stress associated with this.
From the reasons mentioned above, you can see that people are more inclined to the idea of using the services of a solar farm company to installing their own panels. This shows that there is a viable and profitable market for solar farm companies. I will now go into the process of starting a solar farm.
Starting a Solar Farm – Sample Business Plan Template
1. Carry Out Research-: Before you start out a solar farm, try and carry out a research on business before you start out. How much capital will the business take? Is there a land to mount your solar farm? Are there other solar farms in the location? What are the main problems they are encountering from running their solar farms in the location? You should find honest answers to these questions before you get started.
2. Develop a Business Plan-: When you are done getting all the information and answers you need from your research, it is time to draw up a business plan. Due to the nature of this business, it is advisable that you draw your solar farm business plan with the help of professionals who will provide you with the estimate you need to make your plan. Make a plan that will cover at least the first 10 to 15 years of the business.
3. Get Legal Backing for Your Company-: Due to the size of the business, you need to register it as a company with a legal entity. After making your business plan and estimates, you should start the process of registering your business name as a legal company and permissions provided by the law to starting a solar farm. This way, you will avoid legal issues with the law later. You can employ a legal counselor or Lawyer to handle the process for you.
4. Scout for Land Space-: Mounting a solar farm is a business that requires a land space to get started. Some professionals estimate that you need at least 15 acres of land to start a solar farm. If you have the capital, you can out rightly purchase the land, it you don’t, you can lease the land. But make sure your leasing agreement covers at least 50 years. so that there will be no need to dismantle the panels sooner than expected.
5. Erect Your Structure-: At this stage, it is time to start erecting the Photovoltaic power. There are companies that offer the service of mounting the solar farm for you. You can give them the contract of mounting the tower within your land space; the company should also be responsible for major maintenance and renovation of the solar farm because it is better to work with one company for a single long term project than having different companies handle the contract.
6. Send Out Proposals to Companies and Individual-: During the construction of the solar farm, some companies and individuals may come to make inquiry on the term of service from the solar company. When they structure is fully erected, you can make it official by sending companies, industries and individuals in the location of the service you offer. Also include a service cost and payment method for people interested in using power from your solar farm.
So far in this article, I have explained the difference between a solar panel mounted on the rooftop in our homes and a solar farm, I also explained the reasons why people prefer to use the services of a solar farm company to their personal solar panels., and I went ahead to explain the steps involved in starting your own solar farm. In conclusion, if you have the capital involved to build a solar farm, you can go ahead and start a solar farm company as the returns is massive and passive a the solar farm runs on its own with just minor maintenance regularly on the panel.
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