What’s the rate for large scale solar?

[Thick Farmer]

What’s the going rent per acre for say 150 acres of solar these days? Anyone done it recently?

 

[Exfarmer]

What’s the going rent per acre for say 150 acres of solar these days? Anyone done it recently?

very much depends on connection, but I would think in the order of £6-800 with inflation increase , but apparently looking for 30-40 year leases

 

[jh.]

What happens at end of contract with the site, does the tenant put back to as was , or do they leave a pile of scrap and concrete

 

[Hampton]

very much depends on connection, but I would think in the order of £6-800 with inflation increase , but apparently looking for 30-40 year leases

After what’s happened to the telecommunications mast job, I would be very nervous about putting acreages down to solar. Could easily be changed with a swish of a govt pen

 

[MrNoo]

After what’s happened to the telecommunications mast job, I would be very nervous about putting acreages down to solar. Could easily be changed with a swish of a govt pen

Dont see why as there is no Gov payments/subs on all new solar now, it's all Power Purchase Agreements for County Councils or big business etc etc. They collect tax and business rates (local council) so I cant see what the Gov can do to make it unviable, after all they will be selling elec into the wholesale market. HMRC on the other hand could potentially throw a spanner in the works depending on size of site, % of solar versus farm income, or even require that the solar rent is a separate business to the farm business.
Our acreage is split up between 2 owners and the Ltd Co and actually the farm will be no better off, losing 100 acres for about the same return re crops but obviously without the work.
Re money I was talking the other day and they were in the 800-1000/ac bracket but as said depends on the connection and where it is.

 

[Hampton]

Well, telecommunications masts are all private and were well remunerated until the govt introduced the telecoms code, basically declared phone coverage a necessity and now the rents have gone to sh!te.
Just adding a note of caution, I’m not advising anyone to not get solar, just be aware that circumstances can change

 

[MrNoo]

No, I agree with you but you can't spend your life 2nd guessing what potentially could happen or you'd never do anything. Who knows things could work in your favor, sites could be designated brown field sites later on in their life or a whole host of other positives things, if only we had a crystal ball!!!

 

[lloyd]

Dont see why as there is no Gov payments/subs on all new solar now, it's all Power Purchase Agreements for County Councils or big business etc etc. They collect tax and business rates (local council) so I cant see what the Gov can do to make it unviable, after all they will be selling elec into the wholesale market. HMRC on the other hand could potentially throw a spanner in the works depending on size of site, % of solar versus farm income, or even require that the solar rent is a separate business to the farm business.
Our acreage is split up between 2 owners and the Ltd Co and actually the farm will be no better off, losing 100 acres for about the same return re crops but obviously without the work.
Re money I was talking the other day and they were in the 800-1000/ac bracket but as said depends on the connection and where it is.

Not in the AONB area of the Cotswolds then?

 

[MrNoo]

Not in the AONB area of the Cotswolds then?

No, fortunately not or unfortunately depending on how you look at it, about 3 miles from the edge of it, edge is the B4425 Ciren to Bibury road, am just South of this.

 

[lloyd]

No, fortunately not or unfortunately depending on how you look at it, about 3 miles from the edge of it, edge is the B4425 Ciren to Bibury road, am just South of this.

In my experience I would say fortunately not.

 

[Doing it for the kids]

very much depends on connection, but I would think in the order of £6-800 with inflation increase , but apparently looking for 30-40 year leases

the sweet spot is 49mw it seems these days which is 250 acres or so.

about right as usual @Exfarmer a few extras for site maintance to be had as well and bonus for extra production

What happens at end of contract with the site, does the tenant put back to as was , or do they leave a pile of scrap and concrete

it all depends on the contract....

in the old days you could buy it for £1 or force them using the decomissing bond to return it as it way, land drains and all, before they set foot in.

now your can’t buy it back but they still have to return it as is. I love the idea of a farm being given back with brand new drainage, if it’s required.

the National Grid are investing eye watering sums in the network so connections not viable or available as little as 6 months ago, suddenly are.

 

[Thick Farmer]

very much depends on connection, but I would think in the order of £6-800 with inflation increase , but apparently looking for 30-40 year leases

Sounds a bit on the light side. I’d be wanting to see four figures to make it a goer.

 

[Doing it for the kids]

Sounds a bit on the light side. I’d be wanting to see four figures to make it a goer.

why so? Given your location your radiation levels aren’t epic.

can you make £80k of passive income per annum index linked from your 100 acres as it stands today!?

 

[Thick Farmer]

why so? Given your location your radiation levels aren’t epic.

can you make £80k of passive income per annum index linked from your 100 acres as it stands today!?

That’s true but there are other factors to consider such as loss of APR and the fact that the rental is effectively unearned income. I’m obviously tempted though.

 

[Doing it for the kids]

That’s true but there are other factors to consider such as loss of APR and the fact that the rental is effectively unearned income. I’m obviously tempted though.

yup, this is all true. One for your accountant but on a 30-40 yr contract you are gazing in to a bag of crystal balls to guess the tax structure going forwards.

do what you think is right at the time!

are you in the Carmarthen area? Few along the A40 there, albeit baby ones

 

[Thick Farmer]

yup, this is all true. One for your accountant but on a 30-40 yr contract you are gazing in to a bag of crystal balls to guess the tax structure going forwards.

do what you think is right at the time!

are you in the Carmarthen area? Few along the A40 there, albeit baby ones

Im in Pembs. Good sunlight hours here apparently.

 

[davidroberts30]

Im in Pembs. Good sunlight hours here apparently.

When it isn't raining

 

[Doing it for the kids]

When it isn't raining

saves on washing

 

[davidroberts30]

saves on washing

Oh they'd be clean alright

 

[Chasingmytail]

Its around £1000p acre or just below. Could be £900. Had a meeting about some more land the other day. 25 years.