Can you run a Bitcoin Miner on Solar Power in 2024?

Everybody knows that bitcoin mining uses a lot of power. Following on from that, everybody also knows that power isn’t cheap. Therefore, it goes without saying that a lot of us have probably wondered in a flash of supposed genius: 

“Can you run a bitcoin miner on solar power?” 

Perhaps surprisingly: You can.

However, there are a myriad of factors that the success of your solar powered mining rig depends on, of course. So, what are these factors?

The success of your bitcoin miner running on solar power depends on: 

• The hours of sun per day.
• The aspect of the roof or roofs upon which your solar panels are placed.
• The available space on those roofs.
• How much Bitcoin you are expecting or hoping to mine.
• The type of solar panel you use.

In this article, we’ll discuss in detail just how viable it might be to mine Bitcoin with solar energy.

What is Bitcoin Mining?

Bitcoin mining is the energy-intensive process of solving incredibly complex mathematical problems by verifying new transactions and adding them to the blockchain. Once successful, new Bitcoins are created.

A blockchain acts as a decentralized ledger of all previous bitcoin transactions on a network.

The idea of recording these transactions as blocks in an ongoing chain is that the transactions are validated and legitimized, despite the fact that the currency is outside of government control at this time. 

The math problem mentioned above is the actual process of adding a block to the chain.

To verify new transactions (i.e. to mine successfully), a huge amount of power is needed in order to solve these highly complicated mathematical computations.

Whichever computer (or group of computers) solves the equation first is rewarded with 6.25 BTC- and then it all begins again at the next problem to be solved.!

The amount of power required to mine one Bitcoin as of August 2021 is estimated as nine year’s worth of standard household electricity consumption. 

So, you can see why some are investing in alternative power sources; the traditional methods aren’t always practical, especially if your income is unable to support such levels of energy use.

How Does Bitcoin Mining Impact the Environment?

All Bitcoin mining up to this point has generated somewhere around 200 million tons of CO2. 

In relative terms, according to a study written about by Forbes, Bitcoin impacts the environment in the same way dairy farming does: Very badly. 

The study measures climate damage in dollars spent combating carbon emitted, putting the environmental cost of each individual bitcoin as $11,300. 

The average cost of damages has been calculated at 35% of Bitcoin’s total market value, which is according to this study even more damaging than the beef industry, the damage percentage of value of which is 33%.

Natural gas and crude oil production have damage-cost figures in the 40% range. Let’s not forget that these processes contribute to Bitcoin’s overall damage, and vice versa!

All this to say that bitcoin mining using traditional grid power has a catastrophic effect on the environment, due to unsustainable energy usage and high carbon emissions.

Is Bitcoin Mining Expensive?

The graph below will do a good job illustrating for those who are wondering, “Is bitcoin mining expensive?”

Bitcoin mining worldwide uses more energy than many nations! You can imagine that all that energy certainly doesn’t come cheap.

As mentioned earlier, it would take about 9 years for a standard household to mine one Bitcoin, based on data from August 2021. Some other worrying statistics include: 

Startup Costs

Application Specific Integration Circuits, or ASICs, and Graphics Processing Units, or GPUs, are the required hardware if you are looking to begin mining Bitcoin. 

Unfortunately, ASICs can cost upwards of $10,000 just to get going! GPUs are cheaper; however, many are needed, and in either case your costs will be significant to have any chance of mining success.

Volatile Markets

In 2020, bitcoin hit a low point of $20,000, and a high of $69,000, in 2022 a low of $18000. 

These wildly varying prices may negatively impact your return on investment, or ROI; depending on the market and how much power your mining uses, you may not recoup your startup and ongoing costs.

The Odds

Probability is against the aspiring miner. Statistics show that the likelihood of solving part of the blockchain for the equation’s answer (known as a hash) are one in 22 trillion.

 This probability is representative of the total power you put into solving the equation, as they are solved by making random guesses as fast as computationally possible until the answer is found.

Can Solar Power Reduce Mining Costs?

It most certainly can, if you are successful enough long term to receive a return on your investment (of hardware, solar panels, and the like). 

To figure out exactly how to make this ROI possible, let us explore how to set up an adequate solar power mining rig. 

On grid, at an average price in US dollars of 13.9 cents per kilowatt hour, mining one bitcoin will cost about $35,000. 

The latter source argues that to generate the equivalent amount of power through solar means, you would need to invest in between five and six panels at the cost of around $35,000. 

Investing in solar panels costs the same, and is a one-off payment as opposed to the same figure for every bitcoin mined. 

With the volatility of the market, continually using grid power will put you at risk of losing money whenever the bitcoin rate plummets below your running costs.

With a solar powered energy setup, you will be less damaged financially by market fluctuations because any reward you make above the setup costs will be yours to keep, rather than the electricity company’s. 

The running costs of such a rig are also far lower, thereby making profit potential much higher. In these ways, solar power can definitely reduce mining costs.

How can Solar Powered Bitcoin Mining Reduce the Environmental Impact?

Solar powered Bitcoin mining can potentially reduce environmental impact due to the renewable energy input it requires. 

This lessens the dependence on grid electricity- and thus on less renewable sources, such as fossil fuels and other associated traditional forms of power. 

Since its inception, Bitcoin production has resulted in nearly 200 million tonnes of carbon dioxide emissions. This amounts to 37 megatons annually! 

The majority of mining rigs are presumed to be on grid power at this time, but this will most likely change as solar panel systems become more affordable and prevalent. 

The sun is an ever present source of power that will continue to be so for the foreseeable future. 

Unlike fossil fuels and other similar methods of power generation (which have set finite limits, as far as we are aware), the energy output of the sun is constant, renewable and right there to be harnessed.

If done so responsibly, solar power can certainly be utilized continually without bringing about environmental destruction.

What Does a Solar Bitcoin Mining Rig Consist of?

The elements of a solar bitcoin mining rig are as follows:

• The sun.
• A motherboard- the main requirement of which is that it can connect to a large amount of GPUs.
• A robust cooling system- your computer hardware is going to generate heat, and lots of it.
• A hard drive of at least 100 GBs and potentially up to 250, although there really is no ceiling. What is important is that it can hold your cryptocurrency.
• Risers, i.e. power adapters and specialized connective equipment and/or cables.
• Multiple GPUs.
• Power switch.

How Many Solar Panels are Needed for a Solar Bitcoin Mining Rig?

On average- and factoring in a standard sunny North American location- a square metre of solar panelling will produce 229 watts. 

A single mining rig will require a minimum of 450 watts, but when hoping to make a profit you will be running multiple GPUs and as such the expected wattage is closer to the 1000-1500 watt range. 

To generate enough solar power per day to run one rig, you will need a minimum of 2.5 to 3 metres squared of solar panelling. Running the aforementioned multiple GPUs requires between 3 and 6 metres square worth of panels. 

However, to keep your rig running at night with reserve power, you are going to need a whole lot more.

To keep your rig running throughout the 13 hours of no sunlight, assuming that your area gets 11 hours per day, you will need between 6 and 12 metres squared of solar panels. The extra area generates power for storage, which will then run your rig during the night.

Solar Powered Bitcoin Mining as a Source of Income

If you live in a sunny area, have the investment cost ready, and can afford to live until the point that you receive a ROI, then solar powered Bitcoin mining as a source of income is a viable option.

The significant startup costs may hinder some aspiring miners, but once you have the capital to invest in an efficient rig and maintain it, you have the potential to earn continual passive income. 

Either completely off grid or in a hybrid power setup, solar panels can increase your Bitcoin mining efficiency and profits. 

Though they are not unheard of, it would take an immense and somewhat impractical setup to mine Bitcoin effectively from a solar powered RV. As such, relying on this method as a source of income is not recommended.

Pros of Solar-Powered Bitcoin Mining

• Much lower carbon footprint due to lessened dependence on fossil fuels.
• Cheaper for the miner (once startup costs have been recouped).
• Sustainable and passive source of income.

Cons of Solar Powered Bitcoin Mining

• High startup costs.
• Unpredictability of certain essential factors, such as sunlight.
• Increase in mining difficulty every four years means that large upgrades to your solar setup will at some point be required.

In Conclusion

So, to those of you who have asked, “Can you run a bitcoin miner on solar power?” The answer is yes.

Setting up a decent solar powered mining rig may not be easy or cheap, but it has the potential to pay for itself many times over. 

If you invest in the right amount of panels to adequately power your decided amount of GPUs, you can mine Bitcoin successfully without relying on expensive grid power. 

Additionally, you will not be harming the environment nearly as much, so will not be subject to any future power-related penalties that local government bodies may incur as public outcry against heavy grid-power consumption continues to increase.

Finally, things to keep in mind when making investments of this size are Bitcoin’s volatility, proposed changes to the blockchain algorithm, as well as overall climate trends (due to these having a significant effect on sunlight).