Lease your land for solar: Returns on 5MWp solar parks in Swansea, Wales

by James Martin II on January 9, 2013

Leasing land for solar farms

Those who own land in Swansea, Wales may want to consider leasing out a portion of it for a solar park or solar farm. Thanks to the region’s sunny climate, solar power systems large and small have proved popular here. This article is an overview of the potential returns for Swansea residents who choose to lease their land out for systems on the larger end of the spectrum–5 megawatts (MWp).

What are the returns if I lease my land for a solar park in Swansea?

Those Swansea landholders who lease part of their land to the development of a 5MWp solar park or solar farm, for example, stand to see revenue upwards of £26,000 per annum--with no capital expenditure. Over a 20 year period this amount could easily exceed £500,000. 

Interested in hosting a solar park or solar farm? Get in touch with Solar Selections today.

To get an idea of what is required you can also have a look at our criteria checklist for solar farms.

Investments made more attractive by government incentives for solar power

The UK government has introduced incentive programs which increase the attractiveness of investing in renewable energy generation in order to meet the nation’s 2020 renewable energy target of 15% and improve energy security. The main incentive programs when it comes to solar photovoltaics (PV) are the feed-in tariff and the Renewable Obligation (RO) scheme. Both of these subsidise the production of renewable energy, but not the up-front costs associated with constructing a plant. For those who want to take advantage of the returns a solar system offers but don’t want to tie up the capital, opting to lease land for the construction of a system is an attractive option.

The RO applies to solar plants of any size, but is more often chosen for larger ones, especially those around the 5MWp mark–the cut-off point for feed-in tariff eligibility. The above figures are based on the expected power output of a system in Swansea, with returns from the RO scheme and with the owner of the land where the system is installed receiving a 3% cut of the revenue of the system.

Under the recently reviewed RO scheme, system owners will receive 1.6 renewable obligation certificates (ROCs) per meagwatt-hour (MWh) of power that their system produces. Although down from the 2.0 ROCs offered for systems installed before April (it is effectively impossible for projects commencing now to meet the April 2013 deadline to take advantage of this), the dramatic drop in the cost of solar panels and other system components since last year means that returns on investment are still high, and systems more accessible and affordable than ever.

What if I live in Swansea and want to invest in a solar park or solar farm myself, directly?

5 MWp Solar FarmFor those who have the wherewithal and the desire to be the beneficiary as well as the owner of a solar farm, the value proposition is even greater than through land leasing.  Solar Selections manages tenders for a wide range of solar farms, solar parks, and other commercial-scale solar PV projects across the UK–including Swansea, Wales. Contact Solar Selections today to find out more about how we can help you maximise your solar investment.

Phone: 020 7205 2267

© 2013 Solar Selections Ltd

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