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.