Solar generation per acre

[jed]

Hi Chaps
A Quick question how much solar energy would one acres of panels produce.
I‘ve been approached by a private business who are on about putting solars on some of our ground and I’m trying to work out if there stuffing one up me?
thanks
Jed

 

[Exfarmer]

From your post Are you saying it is a relatively small company made this approach for power for their own use
it works out about 250KW installed per acre can be up to 300Kw in the best situations but allowing trackways etc 4 acres per megawatt is about the norm.
This will produce about 250,000 KWh ( units) per year
This production is worth currently about 8p per unit for export, but if offsetting imported power obviously is worth far more. Running cold stores etc can be phenomenally power hungry.
if you have been approached by a company very much advise you find a land agent who specialises in this work.
By all means PM me if you would like to expand on the site and use etc.

 

[MrNoo]

Also you're normally paid by the acre and then a profit share on top. 24Mw on 92ac here. Last offers I had were 1200/ac up to 1500/ac for a new site, bat storage was 2,500Mw. Our existing solar farm is I think £900/ac but that was the going rate when we signed. It'll be index linked too.

 

[jed]

In the Initial conversation they have said they want 20 to 25ac
20 Years and would pay £2000 per ac it would be to supply a private user .
There are two 200000sq ft building been built on the industrial park so as you said probably cold storage .
They want to come and see me next week so I will keep you posted.

 

[warksfarmer]

Hi Chaps
A Quick question how much solar energy would one acres of panels produce.
I‘ve been approached by a private business who are on about putting solars on some of our ground and I’m trying to work out if there stuffing one up me?
thanks
Jed

Sounds like they want about 6MW give or take. If its just panels then £2kac is a fair price as long as its index linked. Although you probably ought to look at building in a profit share that delivers the £2k as the minimum payment.
Who has approached you? The companies in the sheds? Shed developer? Or a renewable company who’s going to sell the elec to the sheds?
If its the latter then it will be at your expense, as in they will be taking the cream off your earning potential.

On top of the ‘rent’ you want the restablishment contract for the ground after the build and depending on the state of it, that will be around £600/ac to level off and establish a grass cover.

Then you want the ongoing grounds maintenance contract - sheep to keep it tidy and weed free. Thats £200/ac/yr.

As it will not be connected into the grid then not sure you want to ever take control of it really so think about that in the deal.

If theres batteries involved then double the rent if not a bit more.

Get an agent if I was you.

 

[Exfarmer]

I think you need some very serious financial advice before you meet them. I know it may seem a very big step, but set up right you have a business which would avoid all the usual pitfalls of renting land to these companies.
I would think such a scheme would come in about £5 million and could certainly be financed. I would suspect that payback could be around 5-6 years may be a little longer depending on interest rates. It may of course depend on who would be expected to pay the DNO connection cost. However once established it would be a very long term income stream. You do have to rely on the new occupants of the buildings maintaining their stability.
depending on site you may have issues regarding planning and locals.

 

[steveR]

In the Initial conversation they have said they want 20 to 25ac
20 Years and would pay £2000 per ac it would be to supply a private user .
There are two 200000sq ft building been built on the industrial park so as you said probably cold storage .
They want to come and see me next week so I will keep you posted.

Good Luck....

Get a good Agent to advise you once you have an idea of the business model...

 

[jed]

Thanks everyone some very good advice must admit somewhat out of my depth .
As mentioned a good agent is required I have been recommended one locally so a phone call monday morning

 

[Cowski]

What is the cost of ground mounted panels currently? Excluding grid connection

 

[Exfarmer]

What is the cost of ground mounted panels currently? Excluding grid connection

probably about a thousand pounds per kilowatt