November 26, 2021
Mining cryptocurrency can be a tricky proposition. With huge competition among miners and lots of people getting involved in the industry as crypto becomes more popular, it can be difficult to gain a competitive advantage in the market. One particularly challenging aspect of the crypto mining process is the huge energy demand. The rigs used to mine Bitcoin typically need multiple GPUs and require huge amounts of electricity to operate 24/7. This can drive up operating costs for miners and eat away at their profits—not to mention the potential negative impact on the environment from all that energy consumption and the associated emissions. Thankfully, solar offers a solution for both the cost issue and the carbon issue.
The Benefits of Solar for Cryptocurrency Mining
With the cost of electricity threatening to shrink profit margins, many mining operations are looking to solar power to provide a cost-effective solution. By going solar, miners can lower their utility bills, leaving more room for profit, which can then be funneled into the purchase of additional equipment and improved technology, creating the potential for even more revenue from their crypto mining venture. This reduction in operating costs can give miners a distinct competitive edge in a packed market.
This article documents the success of a Bitcoin mining operation located in the desert, which uses solar power as its energy source. Many crypto miners are looking to areas where renewable energy is easily accessible, with desert locations providing excellent sun exposure. However, rigs may be affected by the extreme heat in such areas, leading to equipment breaking down. We know that solar panels are efficient energy generators in less extreme climates, so a move to the desert isn’t necessary for successful mining.
Using Energy Storage Alongside Solar To Mine Bitcoin
Implementing energy storage alongside solar panels can boost the efficiency of this renewable approach to cryptocurrency mining. Excess energy generated by the solar panels during sunlight hours can be stored in batteries and used to power the mining process overnight—allowing for renewable-powered Bitcoin mining 24 hours a day. Given the competitive nature of the industry, crypto miners will want their rigs running 24/7 to give them the best chance at generating a profit. By using solar panels alongside a battery storage system, miners are ensuring a steady supply of electricity to power crypto mining operations across the entire 24-hour period. Furthermore, a battery storage system offers energy independence and security in the event of inclement weather, or even a power outage. While other mining operations could be left without power, the solar + storage miners will have their backup power source in place.
Are you interested in mining Bitcoin and other cryptocurrencies with renewable energy? Get in touch with YSG today to learn how solar panels can power your mining operation with clean, cost-effective energy. Call the office at 212.389.9215 or send us an email to learn more about mining Bitcoin and other cryptocurrencies with solar power.
YSG Solar is a project development company responsible for commoditizing energy infrastructure projects. We work with long-term owners and operators to provide clean energy assets with stable, predictable cash flows. YSG's market focus is distributed generation and utility-scale projects located within North America.
Sources:
https://www.investopedia.com/news/solarpowered-cryptocurrency-mining-next-big-thing/