@greybeard It only took a few seconds to find out, and Grok quoted its sources.
Grok Sources.png
This is what Grok2 tells me when I ask:
How profitable are solar farms in the UK?
Solar farms in the UK can be quite profitable, driven by a combination of factors including lease payments, government incentives, and the selling of generated electricity. Here's an overview of the profitability based on available data:
Lease Payments: Farmers and landowners can earn significant income by leasing their land for solar farms. The rental rates for solar farms typically range from £800 to £1,000 per acre annually. Some sources even mention figures between £850 and £1,200 per acre per year for solar farm leases. These leases can last for 25 to 40 years, providing a long-term, stable income stream that often exceeds traditional farming profits.
Return on Investment (ROI): The average return on investment for solar farms in the UK is reported to be between 10% to 20%, with most solar projects paying off their initial installation costs within 5 to 10 years. After this period, the energy produced is essentially "free" profit, assuming maintenance costs are managed well.
Profit Comparison with Agriculture: When comparing solar farming to traditional agriculture, solar installations can offer much higher returns. For instance, while wheat might yield around £200 per acre in profit after costs, solar schemes can be four to five times more profitable per acre.
Government Support and Subsidies: Although the feed-in tariff schemes that once made solar particularly lucrative have changed, there are still benefits like tax incentives and the potential for selling excess energy back to the grid at competitive rates. Previously, subsidies were significant, but new projects now need to navigate a different financial landscape, focusing more on the direct sale of energy and long-term lease agreements.
Operational Costs: Once installed, solar farms require minimal maintenance, primarily periodic cleaning and checks, which keeps operational costs low. The panels come with long warranties, often up to 25 years, which adds to the long-term profitability.
