November 25, 2021
As we have discussed recently on this blog, mining Bitcoin is an energy-intensive process which can put a strain on the operating costs of the miner, and also negatively impact the environment through carbon emissions. Nonetheless, cryptocurrency mining has rapidly increased in popularity in recent years, so it’s important to find the most efficient way to mine Bitcoin and other crypto. Using solar panels alongside an energy storage system is an effective solution for crypto miners across the United States and beyond.
How Much Energy Is Needed To Mine Bitcoin?
Mining Bitcoin and other cryptocurrencies requires a huge amount of energy. The rigs used to mine crypto typically involve multiple graphics processing units (GPUs), with miners needing a lot of computing power to remain competitive. This level of competition in the Bitcoin mining industry is driving up the already significant demand for energy. In fact, according to Arvind Narayanan, Associate Professor of Computer Science at Princeton University, Bitcoin mining accounts for almost 1% of global energy usage. Specific energy demands will vary depending on the mining setup in question, but a rough estimate is that approximately 6000 watts worth of solar panels would be needed to run a Bitcoin mining rig with multiple GPUs for the day, while also producing enough energy to store in batteries for use at night.
Using Solar Energy To Mine Bitcoin
Due to the energy-intensive nature of Bitcoin mining, the process throws up issues both locally and globally. For miners, the huge energy demand can increase operating costs and shrink their profit margins. For society, the massive energy consumption of crypto mining presents an environmental challenge. Thankfully, solar energy offers a solution to both the local and global issues brought about by Bitcoin mining. Through the use of solar energy to power their rigs, crypto miners can reduce their operating costs through lower energy bills. This extra capital could then be invested in additional equipment, or improved technology, allowing for a more efficient, profitable mining operation. Furthermore, the use of a renewable energy source like solar offsets the environmental concerns of the mining process by lowering associated carbon emissions.
Using Solar + Storage For Bitcoin Mining
As we know, solar does not produce energy at night, and so its output cannot support a 24/7 crypto mining operation. Now, typically speaking, Bitcoin mining will occur around the clock, so it’s important to have sufficient energy available to support the process at all times. This is where an energy storage system comes into play. By using battery storage alongside a solar PV system, Bitcoin miners can set themselves up with enough energy to sustain their operations. The excess solar energy produced in daylight hours will be stored in the batteries for later use, ensuring a steady supply of electricity at night, during inclement weather, or even when a power outage occurs. This will further reduce energy costs, while also meeting the constant energy demand of the crypto mining process.
If you’d like to use solar and energy storage to power your Bitcoin mining operation, get in touch with YSG today. We will examine your energy needs and determine the ideal solar + storage setup for your specific requirements. 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://greenridgesolar.com/2021/05/solar-bitcoin-cryptocurrency-mining/
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