What’s the rate for large scale solar?

[Al R]

@Thick Farmer theres obviously 1 person to speak to about this...... @henman

 

[Winch Farming]

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

No gov subsidy now so more difficult to fund but seems like growing interest from developers.

 

[Exfarmer]

No gov subsidy now so more difficult to fund but seems like growing interest from developers.

I would not be too worried about solar, it will be a long time before we dont want electricity.
just make sure you have a revert to landlord in the lease, in case your operator goes bust. If you want a manager for a solar farm , there is very little work Involved and the returns are running about £6,000 an acre at present.
There would be no demand if money was not so cheap

 

[Doing it for the kids]

I would not be too worried about solar, it will be a long time before we dont want electricity.
just make sure you have a revert to landlord in the lease, in case your operator goes bust. If you want a manager for a solar farm , there is very little work Involved and the returns are running about £6,000 an acre at present.
There would be no demand if money was not so cheap

always hope they will default, be quite a nice present being given the ‘liability’ of a fully working solar farm instead of a rent

 

[Grass And Grain]

I would not be too worried about solar, it will be a long time before we dont want electricity.
just make sure you have a revert to landlord in the lease, in case your operator goes bust. If you want a manager for a solar farm , there is very little work Involved and the returns are running about £6,000 an acre at present.
There would be no demand if money was not so cheap

Sorry for the naive question, but how much would solar panels cost for an acre to give the £6k return?

 

[Exfarmer]

Sorry for the naive question, but how much would solar panels cost for an acre to give the £6k return?

have not priced ground mounting for a long time, but I would guess in the order of £150-200k, but the connection cost may easily double that. Then there are access roads etc

 

[MrNoo]

Yes, they mentioned it would be circa £20M for ours at 88ac but that will have gone up as they are putting Bat storage in which is very expensive

 

[Grass And Grain]

have not priced ground mounting for a long time, but I would guess in the order of £150-200k, but the connection cost may easily double that. Then there are access roads etc

Yes, they mentioned it would be circa £20M for ours at 88ac but that will have gone up as they are putting Bat storage in which is very expensive

Thanks guys.

Wondering if I've misunderstood something here. So it's getting on for £200,000 for an acre of panels, and the electricity sales are about £6k per year (per acre)??? Is that the situation?

If a developer rents land for £1k/acre, then that will leave them with £5k to pay back the capital cost and the finance?

 

[Exfarmer]

Thanks guys.

Wondering if I've misunderstood something here. So it's getting on for £200,000 for an acre of panels, and the electricity sales are about £6k per year (per acre)??? Is that the situation?

If a developer rents land for £1k/acre, then that will leave them with £5k to pay back the capital cost and the finance?

Thinking about it, it can’t be right
must be under half that on that scale.
i will ask the question of some one who should know.

 

[Grass And Grain]

Thinking about it, it can’t be right
must be under half that on that scale.
i will ask the question of some one who should know.

I guess the developers might work on slim margins (but like the relatively low risk investment). You'd think they'd need a better return than that though.

 

[Exfarmer]

I guess the developers might work on slim margins (but like the relatively low risk investment). You'd think they'd need a better return than that though.

The hedge funds work on incredibly slim margins if it is a guaranteed return. If you can borrow long term money at under 1% and can get 1.5 back on a big scale, its a no brainer

 

[Doing it for the kids]

Hedge funds love solar - it’s the guarantee that gives it the value.

it used to be about £1m / MW all in 5 yrs back, no idea now but clearly still worth it as plenty of applications seem to be going in.

 

[Exfarmer]

Hedge funds love solar - it’s the guarantee that gives it the value.

it used to be about £1m / MW all in 5 yrs back, no idea now but clearly still worth it as plenty of applications seem to be going in.

Think the early ones were getting 25p FIT top up , no wonder they were keen!

 

[Doing it for the kids]

looking at this little gem https://www.ref.org.uk/generators/index.php

a 21MW site is producing about 19,255 MWH or 19,255,000 kwh per annum.

some one else can do the sums...

 

[MrNoo]

If a developer rents land for £1k/acre, then that will leave them with £5k to pay back the capital cost and the finance?

Business rates are payable too, they are actually more than the land rent!!

 

[steveR]

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

Been chatting with two companies recently, and if the cost of connection is low...ish, then deffo up to and beyond 800/ac is achievable. BUT, as you rightly say, very, very long Leases now. I refused an offer early this Summer, because of the length of time wanted.

 

[steveR]

Business rates are payable too, they are actually more than the land rent!!

I would be intrigued to find out what level of Business Rates are being charged to the 3 local to me...

I had a roadside culvert jetted by the Council recently after much pushing, and their attitude was a bit, "it's only flooding farmland" why bother. However, the flooding was pouring into the solar farm here, and making access in some areas difficult.

Next time I will remind them of the obligation to a Rate Payer...

 

[Exfarmer]

I believe the ratable value is reckoned to be £8 per Kw installed
so an average 250Kw per acre would be £2000 X the appropriate rate 50.4p or if a small business the re is very generous discount to 49.1p in the pound
so rates are around a £1,000 an acre

 

[steveR]

I believe the ratable value is reckoned to be £8 per Kw installed
so an average 250Kw per acre would be £2000 X the appropriate rate 50.4p or if a small business the re is very generous discount to 49.1p in the pound
so rates are around a £1,000 an acre

Thank you. Scarey figure then...

Certainly worth reminding the Council that the business they dismissed so casually, is paying 20 grand/annum!!

 

[serf]

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

Brown field site !