You may be missing an excellent opportunity to generate a residual income from your property The case study below shows how an initial investment of £60,000 to install a 50kW solar array generates over £12,000 a year in income. There are few business opportunities right now that can match this level of return.
Your installation supplies power during the day when it is generating from the sun and the grid takes over at night. This is ideal for commercial properties as they consume mainly during the working day. You will be earning 20p -26p per unit (as you agree apon with whom leases pay of your building) directly from your sub-let consumer rather than the 4.5p – 11p per unit paid by your local supplier when you export the same power to the grid. That said, the export model still generates good returns.
A solar PV installation just sits there and generates power. You have nothing to do except claim your SEG payments every 3 months and invoice any on-site consumers. Ideally you should be looking to install a 50kW system as this is where the returns are highest. See the section below for more information.
Case Study - 50 KWatt Solar PV System
200 x HJ Solar 250W Panels with 3 SMA Sunny Tripower 17000TL inverters
|Loss Factor||System Size||Annual Irradiance||Shade Factor||Annual Energy Output|
|0.8 x||50000 kW x||913 x
||1 =||36,520 kWh/yr|
The investment should increase as energy prices rise. At the moment, this price increase is around 7% to 9% each year (according to DECC). SEG payments are guaranteed by the Government to increase in line with inflation.
The following table shows the accumulated earnings over the next 1, 5, 10 and 25 years.
Fuel savings are based of you using 100% of the electricity you generate based on electricity pricing of 25pence.
SEG payments are based on feeding all to grid based on 11pence.
Annual CO2 saving 19,246 kg is based on 0.529kgCO2/kWh
|Year||Fuel Savings||SEG||Carbon Savings (kg)|
|1||£ 9,130||£ 4,017||19,246|
|5||£ 53,547||£ 23,561||94,457|
|10||£ 132,176||£ 58,158||184,602|
|25||£ 666,123||£ 293,094||431,095|
The production of electricity over the year is not evenly distributed as it relies on the sun. Any generation of power over the amount directly used is wasted as it is not saving on any costs. This has to be balanced by the extra generation in winter months. As a general rule, for systems of this size, the extra cost of installation is not offset by winter usage if the summer peak is more than 20% of the usage.
A 50kW system is a very good fit, getting close to the maximum return available on installation costs for a system of this size.
The G99 Engineering Standard - DNO Application
Before we can confirm any installation over 4kW in size we will need to seek permission from the Distribution Network operator (DNO). This should be a formality but there are costs involved. We try to anticipate these but occasionally they can be high and could prohibit the installation if the local transmission network needs extensive upgrading. This will require some preliminary documentation to test the feasibility of the installation with the DNO.
Farm properties and comeercial sites are usually set up for at least 100Amps per phase but we will not know the state of the transformer between your property and the local transmission network until we have submitted the G99 application.
The DNO may allow the installation with the existing transformers, which is what we would expect.
The DNO may allow the installation but require that the local transformer is replaced or upgraded This will carry an additional cost. Transformers of this kind tend to be in the £3,500 range but the size of the installation costs are at the discretion of the DNO. We would of course present any additional cost before commencing any contract.
Before any final agreement we will carry out an extensive survey of the properties including the electrical systems and construction materials to ensure that the installations comply with all building regulations and health & safety standards.