Starting a Solar Farm

[Dancin'Dog]

I'm interested in starting a solar farm, but don't know anything about it.  It seems like it should be a good thing to invest in, but I don't have any data proving that.  I've heard about solar tax incentives, but I don't know if that is a current thing.  I see solar farms around NC along the highways, and saw many more on a recent small plane ride.


I have some capital gains that I need to reinvest and I've read some about Opportunity Zones.  I think installing a solar farm on rural land in a designated opportunity zone might be a good thing for me to invest in. 


Do any of you have experience with investing in commercial scale solar projects?  I'm not sure where to start researching, but figured some of the bright folks around here might have some helpful advice. 

[Proud Foot]

No real experience with these but the biggest barrier will be how you will distribute and sell the electricity you produce. A lot of the utility companies already either own their own means of production or have contracts to purchase their electricity from specific producers. The electrical market is essentially a government regulated monopoly and will have some high barriers to entry for commercial production. A place to start would be to try to meet with a purchaser for the power company that services the area you are interested in having the solar farm.

[MaaS]

I'm not an expert here, but perhaps starting a business to help people install/connect solar to their homes is easier? There is a huge and growing market for this.

[Chris Pascale]

There would be a large outlay of cash, plus maintenance of the land and/or existing structures.

To manage your risk, consider renting the land and buildings to a solar company. They'll pay you a fixed amount and reap the other profits. This works if the rent you receive more than covers your costs.

What is your experience with solar?

[Michael in ABQ]

Utility scale solar projects are typically tens to hundreds of acres and cost millions or tens of millions of dollars. I don't think you're going to be able to economically build your own and just sell electricity to the local utility.

However, you could try to work out a deal with a local business to install solar panels on or near their property and sell them power at a set rate.


The barriers to entry are going to be pretty significant for this. I'd recommend either investing in a company that does it, or looking somewhere else for yield.