How to set up a solar farm?

This type of energy generation model can generate great financial gains
Como montar uma fazenda de energia solar?
Photo: Eric Silva dos Santos

A solar farm or solar energy farm, is a photovoltaic solar panel enterprise that absorb the sun energy and convert it into electrical energy. This electricity is transmitted to the public electrical distribution network, generating energy credits.

These energy credits They are used to obtain discounts on the energy bill of the farm owner, or other consumers designated by him.

To the solar farms They receive this name because they are built on the ground, instead of on roofs, and generally in regions far from city centers. Furthermore, it is an alternative way of “cultivating” the soil, and can generate great financial gains for those who decide to invest in this energy generation model.

Solar farms are generally connected to the electrical grid as DG (distributed generation).

How many solar panels are needed on a solar farm?

Usually, the size of a solar farm is defined in terms of power and not the number of panels. However, it is possible to calculate the number of panels by dividing the total power of the solar farm by the individual power of each panel.

The typical power of a solar panel today is 500 W. Therefore, a 1 MW solar farm, for example, will have around 2 thousand solar panels, occupying an area of approximately 1 hectare (10,000 m2).

Due to current regulations (REN 482), the Maximum power of a solar farm is 5 MW, there is no minimum power for a solar farm. Solar farms with power less than 1 MW may have tax exemptions such as ICMS and PIS/Cofins, in accordance with the ICMS Agreement 16, dated 04/22/2015 and the Law No. 13,169/2015 of 10/6/2015, respectively.

How much does it cost to build a solar energy farm?

Costs are basically made up of two categories:

  • Capex (capital expense);
  • Opex (operational expense).

The first is the initial investment, to pay for equipment (photovoltaic panels, inverters, structures, cables, transformers, etc.), as well as engineering and assembly services and construction insurance.

Already the operational costs, are those related to the operation and maintenance of the plant, such as cleaning the solar panels, security and property insurance, land rental, contracted demand, financial and accounting management of the enterprise, among others.

Currently, for a 1 MW solar farm, the Capex is around R$ 4 million, and the Opex in the order of R$ 150 thousand per year.

Is a solar farm worth it?

Solar farms are usually worth it for both the owner (investor) and consumers of the same. This obviously depends on the negotiation.

The owner gets a payback of approximately 5 years, for a project that must operate for at least 25 years. Consumers usually receive an immediate discount of 10 to 20% on their energy bill.

Furthermore, we suggest participating in courses and solar energy events. It can be an excellent opportunity for owners and consumers to inform themselves about the latest innovations, regulations and best practices in the sector, further increasing the chances of success and benefits for all parties involved.

What are the possible modalities in current legislation?

Basically 2 modalities are possible:

  • Remote self-consumption;
  • Shared Generation.

O Remote self-consumption, implies that the UC (consumer unit) of the solar farm and the UCs of the beneficiaries (consumers) have the same holder, whether a PF (individual) or PJ (legal entity). For example, a network of gas stations holds ownership of the solar energy farm's energy bill, and uses the energy credits generated to save on the energy bill of each of its stations (head office-branch relationship - same CNPJ ).

Already in Shared Generation, it is allowed to merge different holders. To do so, owners and consumers must have demonstrated a commitment to solidarity. This can occur through a Cooperative (formed by at least 25 natural persons, admitting one legal entity), or through a Consortium (formed by 2 or more legal entities, not admitting natural persons).

How to set up a solar energy farm?

Firstly, it is necessary Hire specialized advice, which will instruct you as to how many legal aspects and financial. If the project is possible and profitable, an Owner's Engineering company must be hired, which will participate in structuring the project and help with hiring an EPC (Engineering, Procurement and Construction) company, which will be responsible for executing the project. .

Discover Canal Solar’s Solar Energy courses and training!

What is the best state to build a solar farm?

Currently, the best state to build a solar farm is Minas Gerais. This is due to the tax benefits granted through state Law 22,549/2017, which exempts ICMS from energy generated by the solar farm. The aforementioned law also exempts ICMS from the generation of shared solar farms (cooperatives and consortia). Not coincidentally, the vast majority of solar farms are located in the state of Minas Gerais.

Picture of Redação do Canal Solar
Canal Solar editorial team
Text produced by Canal Solar journalists.

21 Responses

  1. I have a rural property in the north of Paraná with an area of 36000 square meters, I would like more information about solar energy.

  2. What is the minimum area size in square meters to build a solar farm; What is the real net profit per month, and what is the investment for this?

  3. How to attract an investor?
    I have a 22h area in the north of the state of Rio de Janeiro.
    Grateful

  4. I would like to know the current value to set up a 1MW solar energy farm today in Manaus Amazonas, but you can help

  5. Hello goodnight! We have rural land in Alta Floresta MT, I was interested in setting up a solar farm. How can I obtain more information on the subject?

  6. Hello, Very well written and objective article, congratulations. I just had one doubt, whether the CAPEX of 4 million takes the land into account.

  7. Thanks for the guidance. Would you be able to recommend a list of consultancy and engineering companies? Thanks.

  8. Good evening! Would it be possible to obtain this initial capital of 4,000,000 in loans from a bank and after 4 years be able to pay it off even with the interest?

    1. Hello, Francisco, how are you? As explained in the article, the payback would be approximately 5 years, according to the excerpt of the article “…The owner obtains a payback of approximately 5 years, from a project that must operate for at least 25 years…”

  9. Hello. My other 3 brothers and I are interested in setting up a solar energy farm on our father's land. The farm (21° 03′ 44″ S and 41º 39′ 34″ W) is in the municipality of São José do Calçado-ES, almost on the border with RJ. The location where we intend to install the photovoltaic panels is surrounded by a highway and an EDP/ESCELSA electricity line, approximately 250m away. The area (a plateau measuring approximately 4 hectares) is easily accessible and available. I would like to know more about this process to implement the solar energy farm, the procedures, licenses, registrations with the competent bodies, whether a contract with EDP/ESCELSA could facilitate the business, as we initially thought about producing energy for EDP .

    1. I am a business agent in the renewable energy sector and we can enable sustainable business.
      Eng° Velasquez
      Tel: 21 989463718

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