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Rural

Invest in an agricultural building designed to host solar power

Q3 2011

The introduction of the feed-in tariff and the work that we have been undertaking with farms and estates has led us to develop the Solarbarn concept.

The introduction of the feed-in tariff and the work that we have been undertaking with farms and estates has led us to develop the Solarbarn concept.

We believe that solar photovoltaics are a good opportunity for generating on-farm renewable electricity. Once installed, solar PV does not require day-to-day operation or daily maintenance and it produces a predictable amount of electricity, resulting in a consistent financial return on the investment made.

Retro-fitting on farm may not be straightforward. Issues could include: the integrity of the roof material, which may well be asbestos; the structural strength of the building, which may not be designed to take the additional loadings that solar PV will put on it; and the orientation of the building, which may not be optimised for solar PV. Where newer farm buildings are available for a retro-fit installation, it is possible that installing solar PV on it will invalidate warranties on the roofing materials and the structure.

Most farms can host up to 50kW of solar PV panels, as this is the normal limit that can be connected into a 100-amp three-phase electricity supply, which is common on farms. From 1 August 2011 50kW will also be the cut-off point for one of the FIT bands, after which the generation payment drops off significantly.

The Solarbarn concept overcomes these issues by providing a new agricultural building designed from day one to host solar PV on the roof. By adopting a mono-pitch building of either 50ft x 100ft or 60ft x 80ft, sufficient roof space is available for the installation of 50kW of solar panels. Working closely with the building manufacturers, the solar installers and the solar frame suppliers will preserve roof warranties. We have created a solution where a new agricultural building can be erected under Agricultural Permitted Development Rights (28-day notice) that can host 50kW of solar panels.

Being conservative about the amount of electricity that will be produced and realistic about the on-going operation and maintenance costs of the solar, we would expect a return of between 6% and 10% on the money invested in a Solarbarn depending upon its geographical location. This is before any value from using the barn on farm or letting the barn to an agricultural tenant is taken into account.

We believe that the Solarbarn is an exciting opportunity to invest in the infrastructure of farms, as well as facilitating a way to participate in renewable energy generation on farm, whilst providing a sensible return on the investment made.