Debate over whether Bitcoin mining consumes too much energy has persisted for years, but a growing number of operators are focusing on a different question: whether renewable-powered mining can make better economic sense than simply exporting electricity to the grid. A recent example shared by Christian Ander, founder of Stockholm-based exchange Btcx, has brought that discussion back into focus.
Using excess solar for mining instead of grid sales
On May 29, Ander said he had been using surplus solar energy to mine Bitcoin rather than selling that electricity to the grid. According to his estimate, 1 kWh could generate about 1.16 Swedish kronor, or roughly $0.12, through mining returns, which he said was more than 10 times what he would earn by selling the power to the grid. He added that commonly available miners priced around $100 could convert roughly 1.3 kW of electricity into BTC output.
The logic is straightforward: when solar installations produce excess daytime energy and local feed-in tariffs are low, mining can offer a higher-value use of that electricity. For owners of distributed energy systems, that turns surplus generation into a digital asset strategy rather than a simple wholesale power sale.
Mining-plus-grid fallback could reduce operational risk
Tam Hunt, founder of Community Renewable Solutions, has outlined a similar thesis in his research on renewable-powered Bitcoin mining. His study argues that a solar-plus-Bitcoin operation could pay for itself in about two years, and that once the return on investment is achieved, the remaining risk is relatively limited. The reason is that if Bitcoin prices fall below profitable mining levels, operators can switch back to selling electricity to the grid, preserving an alternative revenue stream.
Hunt also noted that off-grid mining could work especially well in regions with cheap land and limited power-line infrastructure. In that setup, miners rely on satellite internet while the entire site runs on solar generation. Onsite battery storage could further smooth output and extend mining activity beyond daylight hours.
Renewable mining is established, but solar is still not dominant
Renewable-powered crypto mining is not a new concept. Some mining operations in China and Canada have used hydropower to offset electricity costs, while Iceland has attracted miners with low-cost geothermal energy. The report also referenced a 2017 case in which a San Diego miner operated 25 S9 machines in the desert using 100% off-grid solar and battery power, claiming the setup was profitable.
Even so, solar had not become the leading renewable source for major mining operations around 2019, with hydropower and geothermal remaining more common at industrial scale. Still, larger solar experiments have started to emerge. One example cited was Australia-based Hadouken Pty Ltd, which was reportedly approved to build a 20-megawatt solar farm dedicated to digital currency mining. As with smaller operators, such a facility could also sell electricity back to the grid if mining economics deteriorate.
Energy criticism continues as miners seek more flexible models
Bitcoin mining still faces criticism over resource use and environmental impact, but the industry has also pointed to data and real-world examples that complicate the picture. A Coinshares study cited in the report found that 78% of Bitcoin miners use renewable energy sources. In addition, miners have increasingly explored ways to reuse waste heat, including greenhouse farming, residential heating, and crop drying.
What makes solar mining notable is not only its environmental narrative, but its economic flexibility. When crypto markets are strong, operators may extract more value by mining. When prices weaken, they can fall back on grid power sales. For projects with access to steady solar resources and inexpensive land, that dual-revenue structure is emerging as a potentially important model for the next stage of crypto mining.