Solar Farm Profit Per Acre Uk

As a result investing in renewable energy has become increasingly popular with claims of solid income on offer.

Solar farm profit per acre uk.

Typically solar farms are set up in rural areas where the land is available cheap and is owned by farmers. The truth is that the united states is expansive with complex markets for power and so a straightforward answer of 300 to 2 000 per acre per year can be misleading without context. So assuming 5 acres for a 1 mw plant the land cost can be taken to be 5000. Best of all none of this costs our clients a penny as the finance for our projects is already available meaning rental income can begin as soon as construction starts.

There are 465 solar farms in britain and 184 of these sprung up last year. Growth in the field scale solar market is currently running at 600 per year and a large number of developers are entering the market bringing mounting competition for viable sites. With the uk government legally committed to meeting 15 of the country s energy demand from renewable sources by 2020 there is currently an opportunity for landowners to look into creating solar farms. Wilson makes 30 000 per year alone on rent from her solar panels and she s got a wind turbine too.

At the height of the solar boom in 2015 rents of 1 150 1 400 acre with an additional payment linked to the turnover from the site were possible but recently developers are being more. Before getting into rental rates it s first important to understand the metrics common for calculating rent in solar land transactions and some high level. Generally solar developers pay the land owner a rent of 1000 per acre per annum. Despite the reduction in subsidies for solar farms new projects are still coming onstream such as the 45 acre site at clayhill in bedfordshire the uk s first subsidy free farm.

This amount is very insignificant in comparison to the total project cost. But it s not a great sign for the state of the uk s farming industry. It is no surprise that solar farms generating guaranteed ground rents in the region of 1 000 per acre over 20 years remain attractive to farmers and landowners.