Pairing Solar with Crypto to earn more

Feb 17, 2021 09:44 AM ET
  • In the realm of cryptocurrency, a growing trend is linking up the energy requirements for the mining operation with renewable sources of electricity generation to obtain more profitability. Mining cryptocurrency is greatly influenced by the source as well as the cost of electricity as this determines the potential profit margins.
Pairing Solar with Crypto to earn more

Cheap Solar

Mining bitcoin with these solar powered grids is one way to gain significant revenue, and this sequence can be potentially more revenue-producing than normal power sales contracts and selling to grid processes. If solar power offers a cheaper alternative to buying power from the national grid, then it is very sensible to combine the renewable energy usage with that of the mining processes. 

Solar Power and Revenue Payback

The pairing of on-site solar power production has and can be a great step up in the mining business. In fact, there haven’t been any other operations that have taken place to increase their own productivity by using the resource of solar power. Genesis Mining was an Iceland based mining operation that used geothermal power, also sustainable and affordable, for increasing their profitability. But the limits of geothermal renewable energy are that it isn’t widely available and strongly depends on the geography of the land used. Solar Power however, is available almost everywhere in the world and can be developed globally in any environment. This makes solar power easier to install, develop and in short- more profitable especially in the realm of crypto mining. The payback time period for solar farms that are made specifically for bitcoin mining have proven to payback the investor within really short time spans of one or even two years. After the payback period, the profitability and cash revenue skyrockets as the ongoing costs that regular mining has to pay for electricity go down to zero, and this carries on for 25 or so years until the efficiency of the solar farms drops. The mining machines would require more investment for upgrades as new technology keeps on coming and aids in the processing power of bitcoin mining.

Bitcoin Mining

Bitcoin mining can also be aided with the phenomenon of negatively priced electricity, as this can further help increase the profit gaining of the solar power-based mining. This would supplement the pre-existing solar farm benefits, and offer another aspect of earning. If in the future all of the cryptocurrency mining operations use renewable sources of electricity then the requirement of energy and in-turn the environmental degradation as a result of power production can be massively mitigated. 

Carbon Footprints and Mining

Financially, bitcoin mining with solar technology is a very smart way to earn more. Solar power offers a cheaper alternative to regular grid power, and with the comparatively cheap installation and construction costs that it possesses can further ensure profitability. The lack of fuel costs also makes sure that the prices do not face volatility as they would in the case of fossil-fuel based energy sources. The carbon footprint of the entire mining process also vastly decreases and makes for a very environmentally favorable system.

If one were to look at the facts behind solar power and how it aids cryptocurrency mining, then we can start factually by comparing its prices and power generation with pre-existing systems.

A single megawatt solar project can power a mining operation for more than 25 years at maximum efficiency at a rate of 5 cents per kilowatt-hour. If the company undergoing the mining were to introduce a power-purchasing scheme in line with the local government, then it can act as a backup source of earning for the operation. Although this would require a bit more effort, such as that of getting a contract that allows for power to be used onsite and for the mining farm to be allowed to sell it back to the grid. This comes with more benefits as renewable energy mining can be offered various tax exemptions and taxation benefits. This would eliminate the need for equity investors to take the tax benefits by absorption, aids in the profit and makes the entire process one that can maximize earning for the miners. 

Conclusion

Renewable energy is definitely a bright light in the entire mining process, and if the pairing of solar energy with that of the cryptocurrency mining processes is done effectively, the profits earnt can prove this to be an ideal investment opportunity.