Free Solar Installs with PPA worth it?

[Foregoneconclusion]

Hi
If this question has been answered before pls delete and ill locate thread. However.. I have been contacted by a solar panel installer offering the usual range of options.. Buy outright, finance or PPA .

I have been through the solar panel sums with my local and excellent panel installers and can't make the buy or finance option stack up.

I use about 6,000 kw (day) a month throughout the year my roofs are east west aligned. Space is not a problem..
Anyhoo.. the ppa is an offering to charge 20% less than my net (including CCL) current contracted price.... assuming all 6000 kw were generated by panels this is a saving of approx 230 quid a month. Of course this is the maximum saving, cloudy and winter months the savings would be much , much less. I have modelled my shed output and even with a 50kw system i can generate only 39,000 kwh/ annum

As i see it the folk installing the panels are onto a winner.. they spend 21k on 30kw array , charge me 12.8p/kwh that i use from thier panels and they get the 5p /kw export. (inflation escalator of 2% per year.) That is a flipping good return on thier investment.. especially as it goes on for 20 years...

Is there a compare the market (meerkat) type place for comparing such offerings? I can't help feeling i'm being sold very short.. It would be interesting to hear suggestions as to how to shop around in this market as at some point there may be a meeting of minds!
TIA

 

[upnortheast]

As i see it the folk installing the panels are onto a winner.. they spend 21k on 30kw array , charge me 12.8p/kwh that i use from thier panels and they get the 5p /kw export. (inflation escalator of 2% per year.) That is a flipping good return on thier investment.. especially as it goes on for 20 years..

So if it`s that good, cut out the middle man & do it yourself ?

 

[chickens and wheat]

Where are you, as 39000 seems on the low side.
How much export are you allowed through you transformer?
Would power be produced near you main supply or would you need extra cabling
I think you can often add 30kw solar without special grid permission, that said i could only have 10kw untill i got an upgraded transformer
If bank will lend you the funds no deposit over 8 to 10 years, then figures may make sense.

I feel many more farms will be pushed into solar etc, to keep the carbon audit people happy,
They are not being generous at 12 13 pence.
Who would pay future scrappage costs?

 

[Foregoneconclusion]

Where are you, as 39000 seems on the low side.
How much export are you allowed through you transformer?
Would power be produced near you main supply or would you need extra cabling
I think you can often add 30kw solar without special grid permission, that said i could only have 10kw untill i got an upgraded transformer
If bank will lend you the funds no deposit over 8 to 10 years, then figures may make sense.

I feel many more farms will be pushed into solar etc, to keep the carbon audit people happy,
They are not being generous at 12 13 pence.
Who would pay future scrappage costs?

Im in pembrokeshire. The panels will be east west orientation.

No issue with capacity of transformer or output or size of install.. apart from the financials.. i have looked at it on a 5 year plan with my local finance brker and can't get it to work whilst paying installments.- id end up having a bigger bill than my current electricity bill..(unless energy prices rise by 2p) Im likely to use most of the output , but modeling it is tricky.

The impression i get is that it is a poor deal (the one i am being offered) - ok i get cheaper (20%) electricity .. but i am tied into them and the price escalator (2%) for 20 years.

Thankyou for your reply!

 

[chickens and wheat]

I used the bank, on a 12 year finance, dont mind long term as a lot of the cost was transformer upgrade, (this help more than just the solar) also a new standby genny again essential but not something that warrents short finance.

Nothing to stop me over paying on the loan if i feel flush in the future.

Im sure that carbon audits are next hurdle for poultry farmers so i like to think im one step ahead.

Why not test the waters with maybe a 10kw system, aslong as you dont end paying for scaffolding twice

 

[Fogg]

I'm in East Anglia and am averaging 47800Kw per 50Kw array per annum, that's based on the last 6 years. I can't imagine that Cambs and South Wales get vastly different levels of sunshine?

I'm using half the electricity myself, so 50Kw here would give me (roughly) £3000 saved per annum on the electricity bill and and £1400 in export... On the basis of that I think I'd find something else to invest in, but how much money would you have to have in the bank to see a £4400 return? I'm not sure what install cost is, but that has to be around a 10% ROI? I guess it makes more sense if you're spending your own money and can offset the capital costs against income. If leasing companies get involved and are fishing for a 6 or 7% finance fee then you're looking at ~30 year payback.

Normally with all these things the more intermediaries and middle-men you have growing their business on your business the less viable it becomes.

 

[Exfarmer]

Where are you, as 39000 seems on the low side.
How much export are you allowed through you transformer?
Would power be produced near you main supply or would you need extra cabling
I think you can often add 30kw solar without special grid permission, that said i could only have 10kw untill i got an upgraded transformer
If bank will lend you the funds no deposit over 8 to 10 years, then figures may make sense.

I feel many more farms will be pushed into solar etc, to keep the carbon audit people happy,
They are not being generous at 12 13 pence.
Who would pay future scrappage costs?

Normally only allow 10kw without special permission, but even then you need to notify and they can object.
Normally 30kw on 3 phase is no issue unless neighbours have substantial arrays
30kw on single phase would normally not be allowed as it can cause some horrible surges in some situations.
One of my sites has had serious issues thanks to a neighbour with 30kw single phase. I have absolutely no idea how he got permission.