Solar Farm letters

[GreenerGrass]

I'm getting quite a few letters at the minute asking for me to sign a grid mandate to allow a third party to speak to the DNO about a connection. They say it's not an agreement to work with them and doesn't tie me to anything. But I'm inherently sceptical.

Talking about £850/acre, but subject to grid. They say initially feasibility study is done entirely at their own cost.

Do say they need 25MW minimum project. Is there any disadvantage to letting them speak to DNO on my behalf, as it might be something we would be interested in, in the future. But I don't want to be trapped or have a commitment.

 

[Goweresque]

I know nothing about renewables and the legalities of setting solar farms up, but one has to wonder if they get a DNO connection for your land but there is no contract with you that says they then have to build a solar farm there, they've got you over a barrel, they'd have the connection rights, you wouldn't, so they could offer you a far lower than market rent. Maybe them getting a DNO connection on your land doesn't mean you can't go and get one yourself, so you'd be OK, but you'd want to be sure.

 

[Steevo]

I know nothing about renewables and the legalities of setting solar farms up, but one has to wonder if they get a DNO connection for your land but there is no contract with you that says they then have to build a solar farm there, they've got you over a barrel, they'd have the connection rights, you wouldn't, so they could offer you a far lower than market rent. Maybe them getting a DNO connection on your land doesn't mean you can't go and get one yourself, so you'd be OK, but you'd want to be sure.

This is my thoughts.

They seem to love down playing it in their letters......yet the form they want you to sign says they are “an agent acting on my behalf” which I think is not quite correct.

 

[Steevo]

I'm getting quite a few letters at the minute asking for me to sign a grid mandate to allow a third party to speak to the DNO about a connection. They say it's not an agreement to work with them and doesn't tie me to anything. But I'm inherently sceptical.

Talking about £850/acre, but subject to grid. They say initially feasibility study is done entirely at their own cost.

Do say they need 25MW minimum project. Is there any disadvantage to letting them speak to DNO on my behalf, as it might be something we would be interested in, in the future. But I don't want to be trapped or have a commitment.

Sounds like you’ve had the same letter as me.

I’d be suggesting speaking to an agent who has experience in this matter before doing anything. One agent gave me some excellent advice recently having represented 6 farms who are many many steps further through the process.

 

[GreenerGrass]

Thanks guys I figured the same, and the rent isn't really high enough either. Would be nice to know how likely an option is.

 

[Treg]

Thanks guys I figured the same, and the rent isn't really high enough either. Would be nice to know how likely an option is.

I had a letter last year, they offered £1050, rang them & had a good chat, this was the 4th or 5th company to interested in the farm let them go ahead with it....Sub station has capacity but not enough capacity in the local net work.

 

[Doing it for the kids]

Issues is, if you give them permission and they get grid, they then own it and whilst they can’t use it without land, no one else can get grid in the area.

its chicken and egg, cost of asking will be - £2-5k in your name. If they get it they have a short period to cough up substantial sums.

either do a bit of research on them and go with gut, ask an agent to recommend or get an agent to enquire for you in your name.

lots are tying up grid and parking it until returns increase Leaving land owner waiting - ask @MrNoo !

what ever you choose do it quick, you will be furious if next door get in before you and bag one of the best crops (other than Buikdings) a farmer can grow.

often someone else pays the £4m upgrade down the line meaning capacity is suddenly free and they all jump on the letter writing!

 

[Steevo]

what ever you choose do it quick, you will be furious if next door get in before you and bag one of the best crops (other than Buikdings) a farmer can grow.

All depends what you want from the land.

I looked round a local one recently and felt it seemed a really sad, dead place to be.

 

[Against_the_grain]

Had one come through here as well. As explained above once you sign that connection you lose a lot of your negotiating power. They effectively have the connection sewn up so it's a case of take our offer or tough. Try and get them to apply in your name. Most wont. Imo that is an indication of their intentions.

 

[Doing it for the kids]

All depends what you want from the land.

I looked round a local one recently and felt it seemed a really sad, dead place to be.

sheep in ours quite happy. Seen huge increase in grey partridge and hares as well, it’s far more diverse than it was before

Had one come through here as well. As explained above once you sign that connection you lose a lot of your negotiating power. They effectively have the connection sewn up so it's a case of take our offer or tough. Try and get them to apply in your name. Most wont. Imo that is an indication of their intentions.

true but they are also stumped With no land and plenty will be right behind in the Q for grid

 

[MrNoo]

Well, we are on our 4th company now, Gridserve. No solar farm but then to be fair, when it was applied for subsidy was good, it then stopped overnight. Which then meant our project was in the doldrums for a while until CFD auctions were announced, so it was planned to go for that. Solar then got excluded from CFD auctions, so back to the doldrums again. Sub free was the next goal, some sites have been built out sub free but getting the figures to stack up is the problem.
Connection capacity was originally 24Mw but where the various companies have been dicking about this is now 11Mw. So bat storage seems to be their next ploy along with tilting panels, so power is produced earlier in the day and later in the afternoon and hence goes to grid and then peak power is into storage, again dribbled out I assume in the evening.
I am aware of one company who has all the remaining connection capacity in the area and I have spoken with them re a project.
But even now I still get firms contacting me re solar, I just ask, "What capacity have you got access to?" They tend to bulls**t their way along for a while but soon shut up when they are made aware that there is no capacity in the area. You would think these Co's would be on first name terms with the DNO's to know exactly what is available re capacity.
Rent prices seem to have crept up to the 800-1000/ac mark but you will only get paid once a site is constructed and I think we are in year 7 and are still waiting although there is talk of construction starting Aug/Sept but will believe it when I see it! Although more positive with this mob.
If me I would make sure if you're getting into bed with a company do some research, ideally speak with someone who is in the business (it is quite a small world), look at their track record. They all have shiny
websites etc but that means very little.
Certainly worth exploring the options though as income would be good and I think here certainly the wildlife would benefit hugely and it would also ease my workload.
But a word of warning, here anyway I am classed as Satan by some of the villagers, even now, some wont even speak to me over our project (but to be honest they're not worth talking to either!)

 

[Doing it for the kids]

Likewise we had huge local opposition, mostly because of the unknown.

few years on and no one knows or seems to care that it’s there, building was a bit hectic and some of the subbies were awful (direct drilled through the village sewer..) but it’s certainly a nice longer term safe crop to have.

grid is the no 1, planning no 2 all though planning has got much easier.

batteries don’t seem to stack up yet, plenty getting planning but few being built out I think.

if you do get a deal try and fix it for you long term with grass care. The guys Doing that deal don’t tend to care about the next problem down the line so often agree to whatever to get it over the line.

 

[Doing it for the kids]

All depends what you want from the land.

I looked round a local one recently and felt it seemed a really sad, dead place to be.

 

[Exfarmer]

Well, we are on our 4th company now, Gridserve. No solar farm but then to be fair, when it was applied for subsidy was good, it then stopped overnight. Which then meant our project was in the doldrums for a while until CFD auctions were announced, so it was planned to go for that. Solar then got excluded from CFD auctions, so back to the doldrums again. Sub free was the next goal, some sites have been built out sub free but getting the figures to stack up is the problem.
Connection capacity was originally 24Mw but where the various companies have been dicking about this is now 11Mw. So bat storage seems to be their next ploy along with tilting panels, so power is produced earlier in the day and later in the afternoon and hence goes to grid and then peak power is into storage, again dribbled out I assume in the evening.
I am aware of one company who has all the remaining connection capacity in the area and I have spoken with them re a project.
But even now I still get firms contacting me re solar, I just ask, "What capacity have you got access to?" They tend to bullpoo their way along for a while but soon shut up when they are made aware that there is no capacity in the area. You would think these Co's would be on first name terms with the DNO's to know exactly what is available re capacity.
Rent prices seem to have crept up to the 800-1000/ac mark but you will only get paid once a site is constructed and I think we are in year 7 and are still waiting although there is talk of construction starting Aug/Sept but will believe it when I see it! Although more positive with this mob.
If me I would make sure if you're getting into bed with a company do some research, ideally speak with someone who is in the business (it is quite a small world), look at their track record. They all have shiny
websites etc but that means very little.
Certainly worth exploring the options though as income would be good and I think here certainly the wildlife would benefit hugely and it would also ease my workload.
But a word of warning, here anyway I am classed as Satan by some of the villagers, even now, some wont even speak to me over our project (but to be honest they're not worth talking to either!)

I don't believe the DNO are supposed too tell any third party if there is capacity in the area, unless they make an application

 

[Doing it for the kids]

I don't believe the DNO are supposed too tell any third party if there is capacity in the area, unless they make an application

true, especially when there is an easy fee in it for them.

that said, they can be quite loose lipped, especially if you have paid a fee, which can be helpful.

my gripe is you can’t ask them ‘how much grid can you give me‘ it has to be, ‘can you give me me X’ if you ask for 49 and they can only offer you 48 their answer is no.

the other thing to remember is that the dynamics are constantly changing, what they say one day may have changed the next so rather hard to future plan sometimes

 

[norfolk'n'good]

I've had a letter also and had a visit today. I'm interested but not prepared to commit 200 acres they are after. My concern is signing up so they can have exclusivity on it for 6 months and signing the financial terms now. Am I being too cautious? I potentially would go for 100 acres but is there anything to be concerned about signing now? They say our area has spare capacity and the need me to sign so they can commit the time and cost involved and to stop another company stepping in, which all seems plausible. Money wise looks attractive enough compared to what others have mentioned. What's not to like? (that's a serious question!)

 

[Doing it for the kids]

The trouble you have is 100 acres is I likely to be unviable so 200 is needed.

why are you so concerned about getting solar on 200? That could be 160k per annum for 25 yrs if you want to ride the solar coaster!

there is a risk to committing grid with someone, I’ve done the same today for what’s it worth. However the options are either spend a few £1000 yourself or take a punt with someone else. Run a few checks on them and see what comes up.

capacity changes daily so no one really knows till the drop a cheque in the post for £200k to secure it.
what do you do with the land now?its. To everyone’s taste looks wise but it’s surprising what you can get used to when big quarterly cheques come in!

 

[snarling bee]

It's a massive decision, but we've done it, and have no regrets, yet.
Don't underestimate the time it will take though just sorting out the crap that goes with it. Get a good solicitor and agent and go for it. The worry for me is really only tax issues, particularly IHT, but you can insure for that.

 

[norfolk'n'good]

The trouble you have is 100 acres is I likely to be unviable so 200 is needed.

why are you so concerned about getting solar on 200? That could be 160k per annum for 25 yrs if you want to ride the solar coaster!

there is a risk to committing grid with someone, I’ve done the same today for what’s it worth. However the options are either spend a few £1000 yourself or take a punt with someone else. Run a few checks on them and see what comes up.

capacity changes daily so no one really knows till the drop a cheque in the post for £200k to secure it.
what do you do with the land now?its. To everyone’s taste looks wise but it’s surprising what you can get used to when big quarterly cheques come in!

I've only got 500 acres so wasn't keen to not farm nearly half. I love growing black grass and complaining about the weather, crap prices, loss of chemicals, machinery costs and so on too much to give it up!
Those that have it are you on a fixed price for the period of time the contract is for, or does it go up a small % each year? Just thinking in 25 years time might no look so attractive with wheat at £750 / ton!

 

[Doing it for the kids]

I've only got 500 acres so wasn't keen to not farm nearly half. I love growing black grass and complaining about the weather, crap prices, loss of chemicals, machinery costs and so on too much to give it up!
Those that have it are you on a fixed price for the period of time the contract is for, or does it go up a small % each year? Just thinking in 25 years time might no look so attractive with wheat at £750 / ton!

just fill it with sheep then you can watch them graze the black grass then die for no reason ?

depends on the contract but usually index linked with inflation. If you can agree a base price per annum with a % share in any uplift in production so you share on the sunny years.

you can also tie them up with a nice ground care contract, £50 / acre to top it, would take you a week on that size for £10k A pop. Usually the guys doing the main deal aren’t bothered by small details like that because they will either sell the site once built or the maintenance department have no say in the early details ?

tax is an issue but 25 yrs is a long time with pretty safe income stream...