A typical 100kW agricultural solar system costs $250,000-$350,000 before incentives, with farms achieving 6-10 year payback periods through energy savings. Federal and state incentives significantly reduce installation costs. Meta Description: Discover the costs of installing solar photovoltaic panels on farmland, including system sizing, incentives, and ROI analysis. Installing solar panels on farmland typically ranges. For a solar farm with $500,000 in annual revenue and $425,000 in annual costs, the profit margin would be 15%, in line with the typical industry range for solar farms which ranges from 10-20%. The initial costs to build a 1 MW solar farm range from $900,000 to $1. 50 per watt and reducing farm electricity expenses by 50-75%.