Solar properties have emerged as real estate game-changers in recent years. With the sustainability trend making it big, everyone wants to own and invest in such properties. Solar buildings are in demand and have a high resale potential. Not surprisingly, investors are ready to pay more for them because they ensure security and growth. Solar farms are the next-level investment as they are bigger in size, scale, and ROI. As an investor, you can get immense benefits such as long-term and steady income, value appreciation, and predictable growth. But you must do some things right to make the most of your solar farm investment. Let us share some valuable tips from real estate pros.
Start with thorough research
Solar farm investment is a relatively new real estate concept, so you must start with thorough research. Consider factors such as capital requirement, ideal land specifications, cost per acre of installation, industry competition, and regulations. Also, dig deep into the problems you may encounter and potential solutions to overcome them. Knowing the facts helps you start with realistic expectations and more confidence.
Prepare your business plan
Once you know the basics, you must prepare a business plan before diving in. Theoretical knowledge about How to start a solar farm gives you a good start, but it is not enough when you start your business. It is better to collaborate with experts who can help you with land selection, budgeting estimates, and installation. Alternatively, you can embrace a simple revenue model by leasing your land to a solar farm owner. You get your neat cut without going far with the hard work.
Set up the plant
After preparing a plan, you must spring into action sooner than later. You need 15 acres of land to set up a 1 MW solar power plant. Things are easy if you already own a large piece of land. Leasing is an option, but think long-term with the agreement. Ideally, it should be for a minimum of 50 years. After all, solar installation is an expensive and complex project, so dismantling the panels too soon is the last thing you expect.
Address legal requirements
Besides land selection and installation, you must fulfill some critical legal requirements to start a solar farm business. You must register as a legal entity to sell energy from your farm. Starting the business without completing the process can get you in a fix, so handle the formalities before going full swing. Also, stay ahead of the necessary permissions to prevent penalties and issues down the line.
Look for prospects
Setting up a solar farm means you are ready to start selling energy. But you cannot expect the buyers to drop in without spreading the word about your business. Look for prospects and promote your services by highlighting the benefits of clean and renewable energy sources. You can target individuals, companies, or industries or opt for a multi-niche model. Everything boils down to the size, scale, and production capacity of your farm.
Getting the most out of your solar farm investment is easier than you imagine. But you must understand the business model and follow the right path to gain customers and retain them for the long haul.