The profitability of a solar farm can be calculated as follows:
- Revenue: The revenue of a solar farm is calculated by multiplying the energy production (in kWh) by the energy price (in €/kWh).
- Costs: The costs of a solar farm include initial investment costs, maintenance costs and financial costs.
- Profitability: Profitability is calculated as the difference between revenues and costs, divided by costs.
For example, if a solar farm produces 1,000,000 kWh per year and the price of energy is €0.20/kWh, the annual income would be €200,000. If the initial investment costs are €1,000,000, the maintenance costs are €10,000 per year and the financial costs are €20,000 per year, the return would be 10%.