What is a solar farm and how does it work?

A solar farm is a shared photovoltaic installation that allows you to generate solar energy for self-consumption or sale to the grid, without needing panels on your own home. It’s an increasingly popular solution for harnessing solar energy sustainably, cost-effectively, and affordably. But what exactly is a solar farm? Let’s find out step by step.

What is a solar farm

A solar farm, also known as a shared solar plant or photovoltaic park, is a plot of land on which numerous photovoltaic solar panels are installed to produce electricity from solar radiation. Unlike an individual home installation, solar farms are designed so that several people or entities can invest in them, either by buying part of the panels, renting space or through shares.

This model allows those who cannot install solar panels on their homes for reasons of space, orientation or ownership, to access the benefits of solar energy.

Solar farms are often located in rural areas or on land that is not intensively used for agriculture, thus taking advantage of large, sunny areas that would otherwise be underutilized.

How does a solar farm work?

The operation of a solar farm is simple in concept, but it is very efficient. Broadly speaking, the steps that the energy follows from the time the sun hits the panels until it reaches its destination are as follows:

1. Solar energy collection. Photovoltaic solar panels capture sunlight and convert it into direct current.
2. Conversion to alternating current. This energy passes through inverters that transform direct current into alternating current, the form of energy we use in our homes and businesses.
3. Energy distribution. Depending on the model, the energy generated can be:
   1. Direct consumption (if connected to an individual or shared self-consumption installation).
   2. Discharge to the power grid and receive financial compensation or benefits for the surplus.
4. If your solar farm is shared, then each investor receives a proportional part of the energy produced, according to your investment or participation.

Then, if you want to participate in a solar farm, you have several ways. The first would be simply to buy panels. Another would be to rent or subscribe, that is, you would pay a monthly fee for the use of part of the installation. The third would be if you make a collective investment, which is basically to participate economically in the project, receiving part of the benefits obtained from the sale of energy.

Advantages of solar farms

Solar energy already has many advantages, but now that we know what a solar garden is, we can see all the extra benefits it has:

1. Access without the need for your own roof. It is perfect if you are living in an apartment where it is not possible to install panels.
2. Economy of scale. As it is a large installation, the costs per kW installed are usually lower than in domestic installations.
3. Shared maintenance. You are not directly in charge of maintenance and repairs. The management company covers it.
4. Profitability. You can obtain an economic return from the sale of energy to the grid, or significantly reduce your electricity bill.
5. Positive environmental impact: You promote the use of clean energy and help reduce CO2 emissions.
6. Land that is not suitable for agricultural cultivation is used, and they can coexist without any problem.
7. In addition to being an inexhaustible source of energy, it does not generate greenhouse gases.
8. You encourage a lot of energy generation from your city. This makes the energy efficiency increase a lot.
9. The solar garden allows you to install a battery, so if you prefer, you can store all the surplus energy, and then decide what to do with it, whether to dump it or use it yourself.

What to consider before installing a photovoltaic solar farm

If you are thinking of investing in or creating your own solar farm, there are a number of key aspects to keep in mind:

1. Location of the land. It should be a site with good solar radiation, preferably without shadows, with south orientation and easy access to the electrical grid.
2. Permits and regulations. The installation of a solar farm is subject to administrative procedures, urban planning licenses and environmental authorizations. It is important to have legal and technical advice from the beginning. You should also take a look at the subsidies and grants that may be available in your city for a solar farm.
3. Technical analysis and feasibility. It is necessary to carry out technical and economic feasibility studies: calculation of estimated production, necessary investment, return, amortization time, etc. and, in addition, an environmental impact study.
4. Grid connection. Access to the grid is vital in order to be able to discharge the energy generated or to facilitate collective self-consumption. The evacuation capacity and the connection point must be studied.
5. Choice of technology and suppliers. The quality of the panels, inverters and structures directly influences the efficiency of the installation. Choosing good suppliers and experienced installation companies is key.

Are there companies that lease land for solar farms?

Yes, more and more companies are looking for rural land to install solar farms. It is a way to take advantage of land that otherwise would not have an intensive use. These companies usually offer:

1. Long-term leases, generally between 25 and 30 years.
2. Recurring income for the landowners, with fixed or variable rents depending on production.
3. Revaluation of the land, since it becomes a relevant energy use.

If you have unused or unprofitable land, renting it for a solar farm can be an interesting option both economically and environmentally. However, it is essential to review the conditions of the contract and to have legal support to guarantee your rights as owner.

In conclusion, now that you know what a solar farm is, you will see that they represent an innovative, sustainable and future-proof solution. Whether as an investor, user or landowner, the opportunities offered by this model are enormous. As the energy transition progresses, solar farms are consolidating as one of the key pieces to build a cleaner, collaborative and decentralized energy system. See you next time!