Solar Farm: Overview, Installation Process, Cost, Payback, and Future


What is a Solar Farm?

The trend of generating and utilizing solar power is increasing with the passage of each day. Australia is a vibrant land offering the perfect weather conditions to reap the benefits of solar farms. The results solar farms generate are way higher than the traditional sources of generating power. So whether you are looking forward to harvesting solar on your land or just trying to understand the concept of solar power farms, this article will help you understand the overview, installation process, cost, payback, and future of solar power farms!

What is a Solar Farm?

Solar farms are a collection of photovoltaic panels (commonly called solar panels). These panels collect the sun’s power which then generates solar power. However, one important thing to keep in mind is that solar power farms are different from the traditional rooftop and commercial solar systems.

Pros & Cons of Solar Farms

Pros of Solar Farms Cons f Solar Farms
They utilize a renewable source of energy Without a doubt, solar farms are expensive.
Solar Power Farms are a one-time investment They occupy a lot of space.
They require low-maintenance Solar farms have a low capacity factor
The payback of Solar farms is high They can be harmful to the environment
Solar Farms help the local people by creating jobs Their output could be sun-dependent


Types of Solar Farms

Utility-Scale solar farms

Large-scale businesses usually utilize these solar power farms to fulfill their electricity needs. As the name indicates, these farms consist of hundreds of thousands of solar panels distributed over huge land that as a result generate electricity. The capacity of utility-scale solar farms varies from 1MW – to 2000MW.

Community Solar Farms

Community-scale solar farms are used to fulfill the needs of communities and small-scale businesses. In comparison to utility-scale solar farms, community-scale solar farms have low capacity. The capacity of community-scale solar farms varies from 100kw to 5MW.

How much land is required for Solar Farms?

The amount of land you need depends upon the number of solar panels for farms you are going to use. To put it simply, the amount of required land depends upon the scale of the solar energy farm that you intend to install. According to GTM research, you may need 30 acres of land for a 5MW solar farm project in Australia.

Solar farm Installation Process: 

The installation process for solar farms is different from the typical solar installation. If you wish to start your solar farm, you need certain legal documents such as a business plan, incorporation certificate, operation and employment agreement, Insurance policy, etc.

The duration of installation varies depending upon factors such as the size of the project and the number of workers working on the project. Typically, it takes a few months to install a solar farm. However, all the important approvals and documents could take 4-5 years!


Solar Farms Installation Cost:

Overall, the installation of Solar energy farms is an expensive process. But Solar farm costs could vary depending on whether you are installing a utility-scale or a commercial-scale project. The average solar farm cost varies from $45-$62 per MWh.

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Payback of Solar Farms:

Solar energy farms can give you a payback of around $45,000 annually if you sell out the electricity from a 1MW solar farm. If you have spare land, you can rent out that land for solar farms and earn from the monthly lease! According to an estimate from the top solar lease websites, you can earn $300- $ 3500 annually per acre of land. However, the lease amount can vary depending upon the locality your land is based at.

Usually, the duration of the agreement for solar farms is 18- 20 years, but the duration can extend up to 50 plus years.

How many Solar Farms are planned for the future?

The trend of solar energy farms is increasing in Australia. According to Clean Energy Council, around 52 large-scale solar farms are planned by the end of 2022! You can get your solar farms installed at the best prices from Blue Tongue Solar!


1. Are Solar Farms effective?

Yes, solar farms are effective when it comes to generating electricity.

2. Do solar farms damage land?

Unfortunately, Yes! Solar farms occupy a huge amount of land that can disturb the greenery and native wildlife.

3. Do solar farms make noise? 

Although solar farms do make some noise, the noise is almost negligible and cannot be heard from a distance of 70-100 feet.

4. How many solar farms are there in Australia?

3.1 million! Australia has 3.1 million solar panel installations generating up to 25,325 MW of Solar energy.

5. What is the largest solar farm in Australia?

Darlington Point Solar Farm is the largest solar farm in Australia, generating up to 336MW of solar power.


The solar farm is a collection of photovoltaic panels scattered over a huge land. You can generate 1MW- 2000MW with a utility-scale solar farm and 100kw to 5MW with a commercial-scale solar farm. The cost of a solar farm varies from $45- $62 per MWh. However, you can earn up to $45,000 annually from 1MW of electricity generated with a solar farm.

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