The Feed In Tariff For Farmers
We are working with many farmers to get their Solar PV systems installed before March 2012. And whilst this may seem to be sometime on the distant horizon… It really isn’t.
There Are Many Things To Be Considered…
Unlike installing a sub 4KWP system on someone’s suburban house which from initial site survey to grid connection can be just 2 weeks, in a farming scenario there are many areas that need addressing.
Assuming you have a suitable southerly (S, SE or SW) facing roof space to adequately locate the required number of panels there is one overriding factor that needs to be addressed on day one. The DNO.
DNO – District Network Owner…
District Network Owner
The DNO is your District Network Owner, the company that manages the National Grid in your area. And the reality is that the National Grid was never meant to be a 2 way highway and to feed your farm produced electricity back into the grid you need to know that the surrounding electrical infrastructure is robust enough to take it.
You must make an application to the DNO if you are planning to install anything above 4KWP on single phase or 12KWP on a three phase supply. You can make several different applications but in general for a sub 50KWP PV system you will be applying for a DNO Statutory Quotation which will ultimately provide you with a contract offer to connect new generation.
DNO Application
We therefore advise all farming clients to make a DNO Application as early in the process as possible. There are 8 DNO’s covering the UK (Including Northern Ireland) and you can see the one that covers your area HERE. The form filling and supporting documentation including system plans needs careful attention. We handle all applications on behalf of customers and if you have any issues with your DNO Application please feel free to Contact Us.
Receiving a contract offer can range from 4 – 6 weeks and at this stage you will know what costs if any are required to strengthen the local network. It is important that you know these costs as it may well impact on overall project viability.
Planning Permission…
I’m certainly not going to go down the grandmother and eggs sucking route here but suffice to say there can be delays when your local planning people get involved.
Planning Permission
The general rule is that other than domestic installations you must apply for planning permission for your solar PV installation. If your PV install is to a standard flush to roof fitted system then there should be no issues with your planning department. All local authorities are under government pressure to reduce carbon emissions and support renewables. If however you have a system that requires tilting above the roof line (to achieve the correct orientation) then you need to seek some direction From your planning authority. We will work alongside you to provide all necessary drawings and schematics as required.
If your farm is a Listed Building or lies within a National Park, An Area Of Outstanding Natural Beauty, A Conservation Area or A Site of Special Scientific Interest then you will need full planning permission. Before you go down this route however it would be advisable to ask for the policy document pertaining to the particular authority. We recently undertook 3 farm projects in a designated AONB and 2 of the projects sailed through planning as they were both 10KWP systems which fulfilled their policy criteria. The third project is still with planning (50KWP) after several amendments but my guess is that there are still several battles to be won and lost.
In all cases we’ve encountered there is clearly a very positive inclination towards Solar PV but protecting the look and feel of our heritage or beautiful countryside is and should be a prime consideration. If you require any of the policy documents of any of the aforementioned bodies please Contact Us and I will be happy to supply any relevant documentation / legislation.
Your choice is DNO and Planning day one or leaving Planning until you have received the network connection costs. Again your PV Installer if experienced can advise you on each of these issues and their likely outcomes.
Structural Survey
There are 2 areas of concern when putting a large array of solar panels on a shed roof. Firstly the weight of the panels and what they are going to be fixed to. In general a good sized shed with adequate joists and purlins will provide a secure structure for the fixing rails to be fitted. And importantly the fixing rails actually defray the weight equally across the roof. Secondly however is the concern of uplift created by strong winds. Clearly this is dependent upon where the shed is sited but there are also considerations such as openings and access points and the roof material.
Your Structural Engineer will perform all the relevant calculations and assess the proposed fixing system of your PV Installer.
We would never proceed without a structural survey and would strongly advise you do the same. It may well require you to make some structural improvements or even consider an alternative building but with the investment you are undertaking it is money well spent.
Choosing The Right Panels For The Job…
The rule in most cases is very simple – Which panel will produce the most KWh’s over the 25 Year duration of your FIT’s payments. And again your PV Installer will advise you based on his industry knowledge and expertise. However if for example you are a cattle or poultry farmer you may well have higher than normal levels of Ammonia Gas.
If this is the case you need a panel that has been tested in these conditions and given an IEC 62716 Ammonia Gas Resistance Certificate. This makes your panel choice somewhat restrictive as at the time of writing there are only Suntech Schott and Evergreen Solar panels that have the certification.
If you are in a coastal location you also need to consider a panel that has an IEC 61701 Salt Mist Corrosion Certificate. The list of panel providers is somewhat more extensive and your PV Installer will advise accordingly.
Taking Advantage Of Your Annual Investment Allowance…
I’m no accountant and to be honest often get my expenses wrong. But with that caveat out of the way the current AIA is £100,000 and on April 5 2015 it drops back to £25,000. Clearly if you are investing in Solar PV it is very much worth extracting the maximum tax savings.
If you require any advice pertaining to tax and financing of your Solar PV system we have a specialist accountant who works with farmers to maximise their income and reduce their tax bills. Please feel free to Contact Us and we can arrange a free consultation.
Return On Investment
The Return On Solar PV Will Never Be Better For Farmers….
The return on your capital investment can be anywhere between 13% and 15% and when you consider the likely increases in electricity prices over the coming years the evidence becomes very compelling.
However the Feed In Tariffs will drop in March 2015 so the clock really is ticking. If you want to understand the financial benefits of your own PV system we are more than happy to provide a financial model based on several system sizes. You are under no obligation whatsoever so please feel free to Contact Us.