Will the sun shine on the
solar industry in 2015?
Will solar remain a dominant force
on farms in 2015 or are dwindling
Government incentives and a loack
of electrical grid availability putting
farmers off? Olivia Midgley asks the
experts.
With uncertainty over the larger scale
sector still clouding the solar industry
it is no surprise farmers and potential
investors have remained cautious.
According to the latest Government
figures, there are currently 907 solar
farms either in operation or in the
planning pipeline in the UK.
This amounts to a capacity of about
8,171MWp (megawatts-peak) - enough
electricity to power 2.7 million homes.
However, from April 1 this year, new
solar farms with an installed capacity
larger than 5MWp, which translates to
about 10 hectares (25 acres) of land, will
no longer be eligible to receive money
under the Government’s Renewable
Obligation Certificates scheme.
While there are predictions the
change will cause a shift towards
smaller developments, some experts
are confident there remains plenty of
opportunity for those with land - no
matter the size.
Conor McGuigan, business development
director at Lightsource Renewable
Energy, says:
“There is a real chance for farmers and
landowners to unlock their green energy
potential - whatever sized sites they
have. They can be assured solar farms
are still an attractive proposition but
choices need to be made wisely.
“Our advice is, in order to make the
most of the current political landscape
and avoid being left disappointed by
missing the deadlines, you need to move
quickly and choose a partner which has
the capability, sound financial backing
and track record of delivering on time.”
smaller scale ground-mount solar
projects - between one and two acres
and up to 250kW - providing a real
investment opportunity and a good
solution when there is not the ability to
meet electricity usage requirements
from rooftop solar alone. It is, therefore,
not hard to see why many farmers have
overlooked solar power. The agricultural
sector faces uncertainty from a number
of factors so, understandably, stability is
critical if investment is to be made. For
this to happen, Government policy must
be consistent.”
industry on its toes of late, but there are
still many opportunities available for
farmers and landowners.
“The biggest news in the solar industry
last year was the 5MW cap which the
Department of Energy and Climate
Change will impose on solar farms from
April 1, 2015,” Mr Taylor says.
Focused
“Until now, developers have been focused
almost exclusively on significantly larger
sites of up to 50MW - the bigger the
better - and as such they have prospected
for large areas with corresponding grid
availability.
When searching for these prize finds,
they invariably overlooked the ‘diamonds
in the dust’ which are the viable 2-5MW
grid/land opportunities.
“The buoyant market for these smaller
sites has led to healthy competition
between the integrated developer/owner/
Future
Success
operators - the result being offers of
Mr McGuigan says there is still a ‘huge Recent signals from Government have
future’ for solar farms beyond April 1 been encouraging and in December last solid ground rents and lease terms for
although installations are likely to be on year, Westminster underlined its support landowners.”
Mr Taylor says saturation of areas of
a smaller scale. He says:
for solar, labelling it ‘a huge success
the grid by solar generation schemes
“Solar farms are not dead. Opportunities story for the renewable industry which
will still be available for installations
has an important role to play in the UK’s has brought about programmes of grid
upgrade works by the Distribution
below 5MWp and they are still an
diverse energy mix’.
Network Operators - such as Northern
attractive option for many farmers or
“This gives a strong indication there
Power Grid and Western Power
landowners looking to diversify their
is Government backing for solar,
Distribution - which will increase grid
income. The UK has made a legal
regardless of the outcome of the next
capacity over the coming years.
commitment to reduce its carbon
general election,” Mr Hanglin says.
“This provides opportunities for
footprint and solar remains an important Hugh Taylor, director of
part of the mix.”
EnergyMyWay’s large-scale renewables landowners in areas affected by these grid
improvements, and can bring land into
Giles Hanglin, director of Savills
arm, agrees the shifting sands of
play which has previously been rejected
Energy, says:
Government incentives and electrical
“For many businesses, we are seeing
grid availability has kept the renewables by developers,” he adds.