With the rapid growth of technology and increasing concerns about climate change, the use of renewable resources, especially solar energy, has gained more attention. Building a solar power plant is not only a positive step toward reducing environmental pollution but also provides numerous opportunities to earn income from solar power plants. Investors and entrepreneurs can achieve profitability in this sector by selling the generated electricity to the government or through energy markets. In this article, we will explore various methods of earning income from solar power plants and their financial benefits.
Methods of Earning Income from Solar Power Plants
Building a solar power plant provides multiple opportunities for earning income. Below are the main methods of revenue generation and profitability for solar power plants.
Selling Electricity to the National Grid
One of the primary methods of earning income from a solar power plant is selling the generated electricity to the national grid. In many countries, governments sign guaranteed electricity purchase contracts with renewable energy producers, ensuring investors can sell their electricity to the grid at fixed rates. This method not only generates revenue from solar energy but also ensures the financial stability of the project.
The latest guaranteed electricity purchase rates announced by SATBA, according to Article 61 of the Energy Consumption Reform Act, are as follows:
- Solar power plants with a capacity of 20 kilowatts or less: 2,500 Toman per kilowatt
- Solar power plants with a capacity greater than 20 kilowatts up to 1 megawatt: 2,200 Toman per kilowatt
Earning Dollar-Based Income
According to Article 12 of the “Eliminating Barriers to Production” Act, the government is obliged to pay investors whose goods or services (e.g., electricity generation from renewable resources by legal entities) result in fossil fuel savings. The payment is equivalent to the amount of fuel saved, up to the principal and profit of the investment. In this model, the maximum sale price of electricity generated by renewable power plants is set at 6.9 cents per kilowatt-hour. The investment is repaid over six years until the full return of the initial capital. After this period, the electricity generated by the plant belongs to the investor, who can sell it to the national grid, through private contracts, or via the energy market. This investment model, with its reduced risk and guaranteed return, is one of the most attractive options for developing solar power plants.
Domestic Consumption and Cost Reduction
Establishing a small solar power plant at a business or farm can significantly reduce electricity consumption costs in the long run. Using the electricity produced by this plant reduces energy expenses and prevents fines imposed under Article 16 (related to exceeding the designated consumption quota).
For large industries, self-sustaining solar power plants can prevent damages caused by power outages, ensuring uninterrupted energy supply. This is especially important for businesses and farms heavily dependent on a consistent energy supply. It ensures operational stability and reduces production or service interruptions.
In regions with high electricity costs, using solar energy as an alternative source can have a greater economic impact, leading to significant profitability. In such cases, saving on electricity costs can be considered a direct source of profit for the business or farm, making this investment more justifiable.
Selling Electricity on the Energy Exchange Green Board
Another method of earning income from a solar power plant is entering into electricity sales contracts with large industries or private businesses. Many industrial units are looking to purchase electricity from renewable sources to meet their obligations and are willing to pay a premium for such electricity. These contracts can provide a stable source of solar energy revenue. This model of buying and selling electricity can also be implemented on the energy market’s green board.
Supplying Electricity to Cryptocurrency Mining Centers
Using a solar power plant (with a minimum capacity of 1 megawatt) for cryptocurrency mining is a smart and sustainable solution for powering mining centers. Given the high electricity consumption in cryptocurrency mining and the associated energy costs, utilizing electricity generated by a solar power plant can significantly reduce operational costs and increase mining profitability. Moreover, this method reduces reliance on the national power grid and prevents issues caused by power outages or electricity price fluctuations. Additionally, using solar energy as a clean and renewable source helps balance technology and sustainable development. Investing in this model not only saves money but also adds attractiveness for businesses operating in the cryptocurrency sector.
Financial Benefits of Building a Solar Power Plant
