A solar farm is valued in one of two ways. A working farm is valued on the income it will earn. A project that isn’t built yet is priced per megawatt, and the price depends on how far along it is. Here’s how both work.

Working solar farms: valued on income

For an operating solar farm, buyers work out what the future income is worth today. They look at:

  • How the power is sold. A fixed-price contract, such as a CfD or a long PPA, is worth more than selling at market prices, because the income is more certain.
  • How much power it makes. Sunshine, panel condition, how often it’s running and how fast the panels wear.
  • Running costs. Maintenance, insurance, grid charges and rent.
  • Years left on the lease. A lease with 35 years left is worth far more than one with 15.
  • Grid limits. Any times the farm must switch off (curtailment) cut income.
  • The buyer’s cost of money. Higher interest rates mean a lower price.

Projects not yet built: priced per MW

Development projects are usually priced per MW (or per MWp, megawatt of panels). The further along the project, the higher the price, because there is less that can go wrong.

  1. Early stage: land being secured, grid not yet offered. Low price, high risk.
  2. Grid offer in hand: a big step up in value.
  3. Planning consent granted: another step up.
  4. Ready-to-build (RTB): land, grid and planning all in place. The highest price before construction.

What buyers actually pay

Published deal data is thin, but two sources give a guide:

  • UK ready-to-build solar, first half of 2024 (PF Nexus): buyers offered on average about €89,000 per MWp. Sellers asked on average about €191,000 per MWp. That’s a gap of over 100%.
  • Europe, excluding Germany (Enerdatics, June 2026): developer premiums of about $20,000 to $35,000 per MW at early stage, rising to about $160,000 per MW for ready-to-build projects with a battery on site.

The gap between buyers and sellers is mostly about grid certainty. Projects with a firm, early grid date sell at the top of the range.

What adds value

  • An early, firm grid date. Since grid reform, a date before 2030 is worth a lot. See why a pre-2030 grid date matters.
  • A clean planning consent with workable conditions and the challenge period passed.
  • Long land rights: an option and lease of 40 years or more.
  • Low connection costs and sensible securities.
  • Room for a battery on the same site.
  • A tidy due diligence pack: every survey, offer and agreement in one place.

What knocks value off

  • A grid date that keeps slipping, or high network upgrade costs.
  • Short leases, unclear land ownership or missing access rights.
  • Tough planning conditions, or surveys that are out of date.
  • Gaps in the paperwork that buyers have to chase.

Development projects are often paid for in stages, not all at once. For example, part on signing, part when planning is granted and the rest at ready-to-build. This shares the risk between buyer and seller.

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Sources

Facts last checked 12 October 2026. Prices change with the market and every site is different. This is general information, not a valuation or investment advice.