Opportunity: Unlock small scale solar by fishergermanllp

The popularity of sub-5MW schemes has returned

Opportunity: Unlock small scale solar

Key project requirements

17-25 acres

UK wide

Green Energy and Sustainability

Opportunity

Due to major grid reforms, 5MW distribution-connected solar farms can achieve energisation much faster than larger projects. While this presents a diversification opportunity, it is on a smaller scale compared to what has been observed over the past five years. These solar farms require between 17 and 25 acres of land for a period of 40 years. Landowners can expect an annual rent in excess of £1,000 per acre, index linked. There is also potential for co-location with a Battery Energy Storage System (BESS), offering additional rental income for BESS installations.

Current market

• Great Britain’s grid connection queue has reached 250GW, far exceeding current requirements and causing significant delays for large projects

• NESO has announced major reforms aimed at removing bottlenecks and prioritising projects ready for immediate construction

• At the same time, demand for clean, locally generated energy continues to accelerate as businesses pursue lower energy costs, decarbonisation and improved grid reliability

• Some solar farm developers are now focusing on much smaller-scale energy projects

Process

• Supply a plan to us and we will arrange for a solar developer to assess it against planning and grid constraints

• If the site is deemed suitable, the developer will submit a grid connection application

• Should a viable grid offer be received by the DNO, we will negotiate detailed Heads of Terms for an Option to Lease

• We will support you through the legal process, with fees payable only upon successful project delivery and receipt of rent

Site requirement

The site should have 11kV electricity lines available for grid connections or be situated within 1 kilometre of a substation. Ideally, the land should be flat and not overlooked by third-party residential properties. It is also preferable that the land is not classified as Best and Most Versatile (BMV) agricultural land.

Benefits

5MW solar farms follow the DNO grid connection process and therefore avoid the requirement for a Transmission Impact Assessment (TIA) conducted by NESO for solar farms larger than 5MW. This allows developers to benefit from a quicker grid connection process and reduced connection costs, avoiding the delays typically associated with major grid connection energy projects. In addition, because they require less land, 5MW solar farms have a reduced visual impact helping them avoid the controversies that often surround larger developments. Landowners can benefit from long term secure income with upwards only indexation.

Additionally, 5MW solar farms can provide direct power to nearby businesses with significant electricity requirements, which reduces reliance on the grid altogether.