Yes and no, to answer in short.
If you are planning on mining bitcoin or other cryptocurrencies with the use of solar power, this article is a must-read.
Mining cryptocurrency is a lucrative business, given that you have the right conditions and resources; be it solar, other renewable energy, or non-renewable energy. By right conditions what we mean is:
- Cheap electricity or free electricity
- Price of cryptocurrency
- Hash rate of mining machine/s.
If you are mining cryptocurrency with renewable energy like solar power, you also have to take into account the cost of the solar system itself.
A solar system is very expensive. If you are to buy one and utilize it, you need to know exactly how many watts you are going to need. You would also need to buy a solar charge controller and a battery. Depending on the size, the number of watts, and the efficiency of solar panels, prices vary.
If you do not have the knowledge to install these solar panels, do not attempt to install them; instead, get the help of a solar panel installation company. Tell them all your requirements, especially the power consumption of your mining machines. Depending on the requirements, the installation company will give you a quote.
The location of these solar panels also matters. Since you want direct sunlight to reach these solar panels, you would need a perfect location. This means you will have to rent a place if you do not already have a place. The rental cost must also be considered.
Once you know all the costs associated with the solar system, next is to estimate the cost of mining and mining machines. The cost of all mining machines and PSUs are the main costs. Additionally, you may need to spend on cooling, fast internet, and maintenance.
Once you know all these costs, you can simply put these numbers into a mining calculator and estimate the profit. The calculator will estimate when you are going to break even; that is when your profit pays for all costs associated with mining.
For most miners that utilize solar power, it takes 2-3 years to break even. This is because the cost of the solar system is very high; however, this can vary depending on the price of cryptocurrency and the hash rate of machines. You are better off mining with electricity sometimes. Also, if you are thinking about powering just one mining machine with solar panels, don’t do it. That is because the break-even point will be so far, you are likely to never reach it. If you want to mine with solar power, you’d want to have a mining farm.
Before you make any purchasing decision, it is very important that you compare solar mining with electricity mining. Calculate the estimated break-even point of these two types of mining and choose the most profitable option. As mentioned, depending on your hash rate, price of a cryptocurrency, and the cost of mining equipment, these results can vary.
One advantage of having a solar system is that you have a backup plan if the price of cryptocurrency drops drastically. That is to sell electricity back to the grid.
If you want to take the maximum out of your mining setup, you should mine the most profitable coin and have the best mining machine. You can learn how to do that here; so that you can reach your break-even point faster. Some of the best mining machines today are capable of generating a high hash rate for very little power consumption. These machines are essentially the best mining machines in the market.
Alternatively, you can build your own mining rig. In that case, you would need to choose the best graphics cards that also fits your budget. You can learn more about it here.
Price fluctuations of cryptocurrency can also break your mining operation if you are mining with electricity. For example, if you are mining with electricity, and the price of cryptocurrency drops suddenly, you would need to cease the mining operation. This is because the cost of electricity can be higher than the mining reward when the price dips.
If you are mining with solar power, you don’t have this issue. You can continue mining even when the price drops because you are essentially paying nothing for electricity. However, if the price drops too much, you may want to consider selling electricity to the grid.
To answer the question “Is Bitcoin Mining with Solar Panels Profitable?”, it depends on your mining setup. You can check that precisely with a mining calculator. Compare solar mining with electricity mining and see which one reaches the break-even point fastest. However, as mentioned in the article, it is important to mention that mining with solar power has some clear advantages over mining with electricity.