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Farm Building and Infrastructure
Renewable Energy
Rent per acre for ground solar?
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<blockquote data-quote="warksfarmer" data-source="post: 32249" data-attributes="member: 192"><p>Told last week the plug been pulled as we reach grid parity by 2016. At the same time the offer of £800/ac was going to be reduced. I wanted double that anyway to go ahead with a 33KVA size operation which has been on and off the cards for 18 months.</p><p> </p><p>If you think about it your locking in for 25 years. In that time the company you originally sign up with, will probably be sold 2 or 3 times so you end up with people owning it you have no idea who they are. This worries me when it comes to removing them at the 25 year lease end. Also the prices are not enough which I know index linking helps but its linked to the RPI and it should be linked to that as well as food/land prices.</p><p> </p><p>4t of wheat at £250/t is not far off profit wise as the £800/ac offer above. Then take into account no SFP and potential inheritance tax issues it really is not worth it is it!</p><p> </p><p>You need to be thinking along the lines of below because of the 25yr timescale:</p><p> </p><p>5t/ac of wheat @ £400/t</p><p>Increase in land rental value</p><p>Increase in land value</p><p>Loss of inheritance tax ability</p><p>Potential for rates after its removed</p><p>Cost of removing it</p><p> </p><p>All that points towards £5,000/acre rental as an average over the 25 years.</p></blockquote><p></p>
[QUOTE="warksfarmer, post: 32249, member: 192"] Told last week the plug been pulled as we reach grid parity by 2016. At the same time the offer of £800/ac was going to be reduced. I wanted double that anyway to go ahead with a 33KVA size operation which has been on and off the cards for 18 months. If you think about it your locking in for 25 years. In that time the company you originally sign up with, will probably be sold 2 or 3 times so you end up with people owning it you have no idea who they are. This worries me when it comes to removing them at the 25 year lease end. Also the prices are not enough which I know index linking helps but its linked to the RPI and it should be linked to that as well as food/land prices. 4t of wheat at £250/t is not far off profit wise as the £800/ac offer above. Then take into account no SFP and potential inheritance tax issues it really is not worth it is it! You need to be thinking along the lines of below because of the 25yr timescale: 5t/ac of wheat @ £400/t Increase in land rental value Increase in land value Loss of inheritance tax ability Potential for rates after its removed Cost of removing it All that points towards £5,000/acre rental as an average over the 25 years. [/QUOTE]
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Rent per acre for ground solar?
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