- Location
- Bury St Edmunds, Suffolk
With the government reviewing renewable energy support mechanisms we have recently been asked by a number of clients whether it is still viable to install solar panels.
As it stands at the moment it is still a resounding yes.
There are two options for farmers looking at solar, the first is self-funding the equipment which should provide a return of upwards of 15%. An example would be: investing £50,000 on a 50kW roof system which would fit on an average grain store would provide an annual income of between £7,500 and £9,000 per annum depending on how much on site usage you have. If you don’t have the cash to invest there are lots of opportunities for finance whether through high street bank, AMC or asset finance companies.
The second option is Free Solar, this is where someone else puts the panels up (third party company) they take the FiT (Feed in Tariff which is one of the subsidy mechanisms for renewable energy) and you get the electricity produced by the system for free. There should be no upfront costs and so this might suit a businesses that uses a lot of electric but are strapped for cash. We have done this for farms that use a lot of elec such as dairy and poultry. This can reduce their bills by up to £3,000 per year. It’s really important that you choose the right third party company to install the panels. All will require a 20 year minimum lease of you roof space but the terms can vary wildly with some insisting that the site owner pays for maintenance and has to buy the system at the end of the lease while others will be free to the landowner for the entire lease and at the end of the lease. This is just an example of some of the differences.
The above is an example of how some companies behave. I would always say it is better to take professional advice on these matters before entering any kind of deal or binding agreement than to have to take the advice after something has gone awry. Usually, upfront professional advice is covered by the solar companies or professional work is done on risk, which means if for some reason beyond your control, the project doesn’t go ahead (for example, you don’t have enough grid capacity in your area so the project becomes unviable) you aren’t liable for professional fees.
The other benefit of using an advisor is that we have experience in looking at deals and opportunities and are able to advise on how quotes differ between companies in ways other than the price. As we are regulated by the RICS and the project falls short you are able to come back to us, which is something you may not get with solar companies.
Without trying turn this blog in to a sales pitch, we have advised many clients on different renewables projects and if you would like to discuss opportunities available, give me a call or our resident renewables expert James Fulton on 01536 532386 or email [email protected]
About the author:
TFF member @@blondeagadvisor will be a regular blog contributor majoring on business matters and other areas of interest
@@blondeagadvisorhttp://blondeagadvisor.wordpress.com/
[email protected]
As it stands at the moment it is still a resounding yes.
There are two options for farmers looking at solar, the first is self-funding the equipment which should provide a return of upwards of 15%. An example would be: investing £50,000 on a 50kW roof system which would fit on an average grain store would provide an annual income of between £7,500 and £9,000 per annum depending on how much on site usage you have. If you don’t have the cash to invest there are lots of opportunities for finance whether through high street bank, AMC or asset finance companies.
The second option is Free Solar, this is where someone else puts the panels up (third party company) they take the FiT (Feed in Tariff which is one of the subsidy mechanisms for renewable energy) and you get the electricity produced by the system for free. There should be no upfront costs and so this might suit a businesses that uses a lot of electric but are strapped for cash. We have done this for farms that use a lot of elec such as dairy and poultry. This can reduce their bills by up to £3,000 per year. It’s really important that you choose the right third party company to install the panels. All will require a 20 year minimum lease of you roof space but the terms can vary wildly with some insisting that the site owner pays for maintenance and has to buy the system at the end of the lease while others will be free to the landowner for the entire lease and at the end of the lease. This is just an example of some of the differences.
The above is an example of how some companies behave. I would always say it is better to take professional advice on these matters before entering any kind of deal or binding agreement than to have to take the advice after something has gone awry. Usually, upfront professional advice is covered by the solar companies or professional work is done on risk, which means if for some reason beyond your control, the project doesn’t go ahead (for example, you don’t have enough grid capacity in your area so the project becomes unviable) you aren’t liable for professional fees.
The other benefit of using an advisor is that we have experience in looking at deals and opportunities and are able to advise on how quotes differ between companies in ways other than the price. As we are regulated by the RICS and the project falls short you are able to come back to us, which is something you may not get with solar companies.
Without trying turn this blog in to a sales pitch, we have advised many clients on different renewables projects and if you would like to discuss opportunities available, give me a call or our resident renewables expert James Fulton on 01536 532386 or email [email protected]
About the author:
TFF member @@blondeagadvisor will be a regular blog contributor majoring on business matters and other areas of interest
@@blondeagadvisorhttp://blondeagadvisor.wordpress.com/
[email protected]