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Monthly archives: October 2010

Since our last article on Solar farms the market has moved forward at an incredible pace. In June and July of this year the acreage value being offered for land rental was around £500-1000 per acre for a 25 year period.

As the time to build out the sites has reduced and the governments March 2012 date coming closer for the reduction in tariffs companies have become increasingly competitive in there offers and institutional investors have had to re-assess their potential returns in order to secure site in this green energy land grab. I have heard companies saying the increases that took 8 years in Wind turbine sites have happened in a few months in solar farm land.

So what is the current land value for a 5MW farm site? Usually between (25-30 acres). Companies are now offering between £50k-70k per annum. This is a huge and exciting step forward, it gives farmers a chance for a true long term income which in some cases will be life changing.

The only risk now is that of time-scales, planning has to be submitted over the next couple of months to have any chance of a site receiving the largest FIT. Once the opportunity for the full FIT is lost companies will again drop the prices they can offer and the land owners who have been sitting on the fence will have missed out.

It is still key that you speak with a company who can demonstrate proof of funding, experience in renewable energy planning applications and partners in place to build out and maintain the site.

If you have suitable land:

  • 25-40 Acres
  • Flat or South facing,
  • Not overlooked,
  • Grazing or low level agricultural land,
  • Close to a substation or power lines

and you would like your site assessed for potential solar development email me at elliot@solarfeedintariff.co.uk.

Solarfeedintariff.co.uk has received hundreds of enquiries asking how the coalition government’s Spending Review will impact on feed-in tariffs. Feed-in tariffs, in the UK known as the Clean Energy Cash Back scheme were introduced as a way of incentivising investment in green energy through the payment of fixed, premium rates for energy generated from small scale renewable projects. Most of the enquiries coming through this website have focused specifically on how the Spending Review will affect UK solar projects so we will seek to answer some of the most popular queries.

How will the Spending Review affect Feed-in Tariffs?

The Department of Energy and Climate Change (DECC) has stated that the tariffs will now be focused on the most cost-effective technologies and fortunately, this includes solar pv. The DECC has said,

“Feed-in tariffs will be refocused on the most cost-effective technologies saving £40m in 2014-15. The changes will be implemented at the first scheduled review of tariffs [in 2012, to kick in 2013] unless higher than expected deployment requires an early review.”

While rates for solar projects will remain unchanged, the government has announced that changes could be made in the 2012 review which could see the tariff cut by 10 per cent in 2014 and 2015. Rates paid by the tariff could be effected by what the DECC have termed a ‘Trigger Point’ where a figure for solar installation is met, reducing the tariff payments.

When will the Trigger Point take affect?

No announcement has been made as yet on the Trigger Point criteria but is likely to revolve around something like installed capacity or applications to install. We will not hear anything until 2012 at which point the government will have to revisit the legislation because currently there is no mention of trigger points in the tariff scheme.

When is the best time to install?

Perhaps one of the most common questions coming to us through our website is the question of the best time to install solar pv panels in order to start taking advantage of the feed-in tariffs. Our answer is always, right away! As it currently stands, you will be able to take advantage of rates of 41.3p until 2012 for units of energy generated from your solar panels. If, however there is a massive take up in solar installation within the next 2 years, the government may decide to reduce the tariff for future installations.

How will any changes affect people who have already installed?

It won’t. Contracts are fixed meaning that anyone who signs up for a tariff rate of 41.3p for units of energy generated can expect those payments for the next 25 years.

Solarfeedintariff.co.uk along with a number of environmental groups are happy with the way solar pv projects are safeguarded amongst the government’s drastic spending review. Now is certainly the time to take advantage of high tariff rates and generate revenue for your household for the next quarter of a century.

The BBC website yesterday released a business article showing that all is not doom and gloom in the financial world. Certainly, while we are told that Britain is set to reel under the dramatic public sector spending review of the coming months, farming at least has the potential to benefit financially from the government’s solar feed-in tariff scheme.

Solarfeedintariff.co.uk has been a keen exponent of the tariff system both home and abroad for the last three years as a way of making solar projects viable, profitable and of course, a long term alternative to other unprotected investments. Now, as the BBC has reported, it is now the turn of forward thinking farm owners to cash in on the tariff scheme which pays small scale producers of solar photovoltaic energy a fixed, premium rate both for the energy they use and feed back into the national grid.

On a BBC website laden with news of the scrapping of the Ark Royal, cutting the Housing budget and the Spending Review, it is good news for a young and growing UK photovoltaic industry that high profile media outlets are now regularly running with solar feed-in tariff case studies. Never one to shy away from the media, Glastonbury festival entrepreneur Michael Eavis plays a prominent role throughout the article, highlighting the very simple financial rewards involved in investing in solar. Indeed, in an industry often reluctant to change Eavis provides perhaps the best example of how farmers can increase profits through investing in new areas, in his case, Rock Festivals and Solar panels.

With a number of solar pv companies now vying to tap into the burgeoning solar market on British farms, landowners will have no shortage in sourcing panels in order to start tapping in to the tariff scheme. The BBC article, rich with quotes from suppliers stressing difficulty in keeping up with demand at the moment, highlights that, once the revenue generation model of solar pv becomes better understood and widely accepted, then the potential for long term profits in UK rural solar projects will continue to go from strength to strength.

For more information on how you could benefit from the solar feed-in tariff, please contact: elliot@solarfeedintariff.co.uk


Jeff Siegel, a top renewable energy investor recently took time out from his very busy schedule to grant an interview with Total Solar Energy (TSE).

If you don’t know Jeff, he runs the newsletter Green Chip Stocks, an independent investment research service that focuses primarily on renewable energy and organic & natural food markets.

TSE: Hi Jeff. Thanks for your time. Can you tell me when you first got started in solar stocks?

Jeff: I had actually been an advocate of solar energy ever since I did a high-school project on it back in 1987. I just found it so fascinating that we could power our homes and our lights and our appliances with these little devices. And I found it frustrating that more attention wasn’t being paid to it.

My interest in solar never waned, and as I started working in the world of finance, I made it a point to focus on investment opportunities that would not only pay off for investors – but for the global community as well.

TSE: Given the current economic and volatile stock market situation, would it be wise to invest in solar stocks right now?

Jeff: Well, with any investment, there is always risk. That includes renewable energy. Yes, the future of solar is very bright. Going forward, solar will be a significant piece of our new energy economy. But at the end of the day, any time you invest, you are taking on some risk.

That being said, I think at this time, a lot of quality solar stocks are undervalued. Some of this is because of the euro (so many solar manufacturers are heavily exposed to the euro), some of this is because of the broader market pulling these stocks down, and some of it is because there are a lot of people that are counting solar out because of the German feed-in tariff cut. The latter makes no sense. The future of solar is NOT in Europe, but rather the U.S. and China.

I think the solar market will still struggle this year, but once we have some more clarification on China and U.S. solar support, we’re going to see the launch of one of the biggest solar bull markets ever. So those in it for the long haul, I’ve been recommending picking up some of the stronger solar stocks on those big dips. We are, however, going to have to exercise a little patience.

TSE: How would you evaluate the year 2010 for the solar industry up to now?

Jeff: Lots of irrational thinking this year. Again, there’s too much focus on Europe. Aside from a slide in the euro, long-term investors know that the payoff will come from the U.S. and China market. But until we stop focusing on tariff cuts and the misconception that there’s an oversupply of product (which is absolutely false), then the market will be quite shaky. We’ve seen that this year, and I think we’ll probably continue to see this.

TSE: Where and when to do you expect to see parity with fossil fuels? And what effect will this have on solar stocks?

Jeff: You could actually make the case that they already are. Assuming of course, you strip ALL subsidies for fossil fuels, and take into account the liquidation of natural capital associated with the production, distribution and consumption of fossil fuels.

In other words, if utilities that operated coal-fired power plants had to pay for carbon, had to pay for mercury pollution and had to pay for any other damage done to ecosystem services (things like the regulation of climate, cycling of nutrients and water, pest control, etc), solar would be significantly cheaper than coal. But what we do is use a baseline for energy costs that are simply incorrect.

Back to the real world, however, where we continue to subsidize fossil fuels and turn a blind eye to the trillions of dollars of damage done to our natural capital every year – I imagine we could see grid parity within 10 years in most parts of the world where there is a strong solar resource.

TSE: What are the major threats to the growth of the solar industry at the moment.

Jeff: Lack of leadership and support. I absolutely hate the idea of subsidizing anything. But the only way solar can compete is for it to get the same generous subsidies that the fossil fuel industries have received for years. And we need to end the debate with the naysayers.

The technology exists, the proof exists, the data is conclusive – we can power a significant portion of our world with solar. I no longer even entertain those who want to continue throwing up roadblocks. They are no more than minor bumps that I’m happy to roll over. This is going to happen. You can either be part of the solution, or you can step aside.

TSE: Do you see the UK feed-in tariff having the same effect on share prices as it did when it was introduced in Germany?

Jeff: Hard to say. Every government operates differently. Spain had a great plan, but its execution was horrible. These tariffs have to be monitored and phased out sooner than later. Otherwise, you create a bubble that’s bad for everyone.

TSE: Do you feel the US would benefit from a nationwide feed in tariff?

Jeff: Not necessarily. I think this needs to be done on a regional basis. An FIT in California, Arizona, New Mexico, Texas, Colorado, Utah – these would be great because you have such a strong solar resource in these states. But if you try to force a FIT for the whole country, you’ll get a lot of backlash, and in some areas, it probably won’t be nearly as effective.

TSE: How do you think the solar industry will look in 5 years?

Jeff: I think the leading solar companies today will be some of the biggest corporations in the world. I think the technology will be much more advanced, production costs will decrease and there will be more policy support. The costs for consumers will be much less, and I think we’ll see a lot of companies offering solar leasing programs.

TSE: Once again Jeff, thanks for your time. I certainly hope you are right.

Many Thanks To Total Solar Energy