Solar farms are long-life assets with steady, fairly predictable income. That makes them popular with funds, energy companies and private investors. Here’s how investing in them works.

Four ways in

  1. Buy a working solar farm. Income from day one. Lowest risk, lowest return.
  2. Buy a ready-to-build project and build it. Land, grid and planning are done. You take on the construction.
  3. Fund development. You pay for a project to get to ready-to-build. Higher risk, but the value jumps at each stage.
  4. Co-develop. You share the costs, decisions and upside with a developer, with clear stage gates.

How a solar farm earns money

  • Contracts for Difference (CfD). A government-backed fixed price for 20 years. In the last round, solar won about £65 per MWh (2024 prices). The ceiling for the current round (AR8) is £75 per MWh.
  • Power purchase agreements (PPAs). A fixed price agreed with a business or energy supplier, often for 10 years or more. See what is a solar PPA?
  • Selling at market prices. Higher potential income, but prices move.

More on this in energy trading explained.

A rough idea of the numbers

Using the government’s middle estimates for a large UK solar farm:

  • Build cost: about £660,000 per MW. See how much a solar farm costs.
  • Output: about 1,070MWh per MW a year (a 12.2% load factor).
  • Running costs: about £9,300 per MW a year, plus land rent.
  • Lifetime: 35 to 40 years.

At £65 per MWh, 1MW earns roughly £70,000 a year before costs.

A simple sum to show how it works, not a forecast. Real returns depend on the site, the contract and the cost of finance.

The main risks

  • Grid delays. Connection dates can slip. See why a pre-2030 grid date matters.
  • Power prices. Unless the power is sold on a fixed contract.
  • Curtailment. Times when the farm is told to switch off.
  • Build costs and interest rates. Both affect the return.
  • Planning. At development stage, a refusal can end a project.
  • Land. The lease must last as long as the project.

What makes a good investment

  • A firm, early grid date at a sensible cost.
  • Land rights of 40 years or more.
  • A clean planning consent.
  • A fixed-price route to market, or a plan for one.
  • A developer who reports honestly, risks included.

What we do

We find land, secure the grid and run planning to ready-to-build. You can fund development, co-develop or buy at ready-to-build. Construction and operations are delivered with partners. Partner with us →

Sources

Facts last checked 12 October 2026. This is general information, not investment advice. Speak to a regulated financial adviser before investing.