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With electricity prices remaining at historic highs, subject to market volatility on pricing, supply and exponential growth in demand for electricity, property owners and bill payers really need peace of mind through stability.
Investment into solar energy makes economic sense for any business, commercial or local authority property where the owner or occupier has:
2. 500m2 or more of roof space or land where solar panels can be installed
In such situations a system will more than pay for itself, can be financed and will significantly improve the sustainability and green credentials of the property.
Rooftop solar panels cost between £1,000 and £1,500 per KWp to supply and install (depending on the complexity of the installation and access to the roof)
The panels will last 30 years, the return on investment over a 20-year period is between 9-18% IRR
Most of the return comes via savings on electricity bills.
For self-funded systems the payback period can be as little as 6 or 7 years.
At present, each kWh generated by a solar energy system is worth between 25p and 50p if used on site, and any excess can be stored or exported to the grid through an offtake tariff.
This means that for property owners or landlords self-funding solar projects, the cost of solar-generated energy becomes fixed or free for 25 years or more without the risk of electricity price volatility or constraint on supply.
Private funders offering a PPA solution enable property owners or tenants to take advantage of a fully installed PV system for zero or minimal capital outlay.
The property owner or tenant enters a long-term contract usually running concurrent with a typical lease (15 years+) to purchase the electricity generated by the solar array from a private funder at a rate that is lower than their current electricity purchase price and guaranteed for a fixed time period.
The PPA model is attractive to property owners who prefer not to make an upfront investment.
As the solar array is owned and maintained by the funder there is no maintenance requirement for the building owner and the bill payer only pays for what they agree to use.
Repayment of financing comes from revenue generated from energy sold to the occupier at a rate that is lower than their current electricity purchase price and guaranteed for a fixed time period.
The site owner or occupier is able to benefit from solar energy as soon as the system becomes operational.
Solar PPAs ensure the cost of electricity remains predictable for the duration of the agreement. The fixed cost per kWh paid for solar energy typically increases fractionally year on year or at the rate of RPI. In every case inflation rates are below expected electricity price inflation.
The solar developer (Generation Power Limited) is responsible for system design, installation, permitting, performance, operations and maintenance.
Efficient, economical solar energy development on commercial, industrial and public sector properties, funded by a PPA investor enables reductions in carbon emissions to be initiated at the earliest opportunity.
The property owner or occupier intends to remain in the premises for 10 years or more or has a lease in place
There is over 500m2 of roof space or land where solar panels can be installed
The property uses 80,000 kWh of electricity or more per year
There is a half hourly meter in use on site or Generation Power can monitor energy usage as part of our pre-design process
The bill payer has a good credit rating and sustainable business outlook
If you are looking for a solar energy installation but may not fit the criteria for a PPA there are other finance options available.
Generation Power can help organise the financing side of your solar project, as well as designing and installing the system.
The first step is to get in touch to discuss your property and current energy usage.
We can then model the building for solar and provide a desktop proposal
Every stage of the process, from initial contact to design and installation, is managed by our in-house team.
If you would like to discuss installing solar at your site, please book a call with us here or email us info@generationpower.co.uk with your enquiry.
Generation Power is always interested in working with clean energy investors looking to provide finance for solar energy development projects.
Investors can expect a share of the income earned from the customer and any tax benefits that may be claimed as the owner of the system.
In the most common deals, the investor will purchase 100% of the ownership interest in a solar or energy storage project company.
The total Solar Project Investment is the amount needed to cover Engineering, Procurement and Construction costs including the Developer Fee.
After purchasing the solar project company Generation Power will comply with the requirements of the project agreements to build the system and sell power to the customer.
Generation Power then collect the long-term contracted energy sales to repay our financier’s initial investment and provide ongoing revenue for the term of the agreement.
Generation Power remains responsible for maintaining the customer relationship and ongoing account management.
We provide full Operational & Maintenance support for the life of the system. If you would like to discuss funding solar developments or battery storage projects for our clients, please book a call with us here or email us info@generationpower.co.uk with your enquiry.
There are a number of funding options for installing commercial solar PV. We have partnered with some of the UK’s leading financial institutions and clean energy investors so we can offer suitable funding options. Please contact us for more information.
The typical payback period for a commercial solar PV system is 6-8 years
No, not at this current time. The Feed-in Tariff (FIT) scheme was closed in March 2019 for new registrations and there are no subsidies on the horizon. Solar PV technology has matured past the need for subsidisation and the energy savings alone are strong enough to provide very healthy financial returns
There are often grants and incentives available for installing renewable technologies. Please contact us for more information.
The property owner should expect to see savings of 10-20% against a standard grid electricity tariff and there are no standing charges or other add-ons and levies to pay.
The PPA’s starting tariff (in pence per kWh) is adjusted annually in line with the Retail Price Index (RPI).
Should you move or sell your property within the agreed term of the PPA, the lease on the roof space and the Power Purchase Agreement transfer to the new owner and they will then benefit from the solar energy under the agreement.
Accelerating your transition to renewable energy
