Understand the full economics of solar farming in Australia — from feasibility to returns — with our interactive calculator.
Adjust the sliders to estimate costs and returns for your solar farm project in Australia.
* Calculator provides indicative estimates based on Australian industry averages. Actual figures depend on location, technology, grid connection costs, financing and electricity prices. Contact AkshaySolar for a detailed feasibility study.
Understanding where your investment goes is crucial for effective budgeting and due diligence.
The largest single cost component. Panels, inverters, mounting systems and balance-of-system equipment typically represent 60–70% of total project cost. Prices have fallen dramatically — utility-scale solar LCOE is now ~$44–62/MWh.
Installation, civil works (roads, fencing, drainage, earthworks), electrical connections and commissioning typically represent 15–20% of total cost. Construction typically takes 6–18 months depending on project size.
AEMO connection process, network augmentation, substation, transformers and transmission line to nearest connection point. Can be $0.5M to $30M+ depending on remoteness.
Planning permits, EIS preparation, EPBC assessment, environmental offsets, community consultation and connection applications typically 10–15% of total cost.
Legal fees, financial modelling, insurance, contingency, project management and financing costs. Include a 10–15% contingency on construction estimates for unforeseen issues.
Rural land leases in Australia for solar typically range $600–$1,500 per hectare per year. With 2–3 hectares per MW needed, expect $1,200–$4,500/MW/year in lease costs over 20–25 years.
| Project Type | Scale | Land | Est. Setup Cost (AUD) | Annual Revenue Est. | Payback | Homes Powered |
|---|---|---|---|---|---|---|
| Residential | 6.6–13kW | Rooftop | $8K – $20K | $2K–$4K bill savings | 4–8 years | 1 home |
| Commercial Rooftop | 100kW–1MW | Rooftop/carport | $100K – $1M | $15K–$150K | 5–9 years | 20–200 homes |
| Community / Small Farm | 1–5 MW | 2–12 hectares | $1M – $6M | $90K – $550K | 10–13 years | 200–1,000 |
| Mid-Scale Solar Farm | 10–50 MW | 20–125 hectares | $10M – $65M | $1M – $6.5M | 10–12 years | 2,000–10,000 |
| Utility-Scale Farm | 100–200 MW | 200–500 hectares | $100M – $260M | $9M – $26M | 10–12 years | 20,000–50,000 |
| Mega Solar (REZ) | 300 MW+ | 600+ hectares | $300M+ | $30M+ | 10–12 years | 100,000+ |
Long-term contracts (10–25 years) with utilities or large C&I buyers at a fixed price per MWh. Provides revenue certainty and underpins project finance. Typical current PPA rates $50–$80/MWh for new projects.
Spot market trading through the National Electricity Market (NEM) or SWIS in WA. Higher risk but can generate premium returns during high-demand periods. Often combined with hedging contracts.
Solar farms earn one LGC per MWh of accredited generation. LGCs are sold to liable entities (retailers) to meet their Renewable Energy Target obligations. Adds $5–$20/MWh to revenue depending on market.
Federal Government scheme providing revenue support for new generation and storage projects. Makes solar economics more certain, reducing development risk for investors.
Solar + battery hybrid projects can earn additional revenue through Frequency Control Ancillary Services (FCAS) in the NEM — responding to grid frequency events. Can add $5–$20/MWh equivalent.
Landholders can earn dual income from solar lease payments AND continued sheep grazing under panels. Research shows improved wool yields under panels — a genuine win-win arrangement.