PV system financing; any feasibility study or other documents needed before asking for a loan

[jmerten]

Hi, I am interested in installing PV system (>10kW, not on a roof).
Many web pages offer roof installation calculation and up to 4 kW.
I am interested in higher powers and not on a roof.

Are there any feasibility study documents or any other ROI calculations needed before asking for a loan, or any other documents

Are there any specific loans for renewables or interest rates?
I was thinking taking loan for 10 years.

 

[yasserp]

@jmerten Before you kick off with anything else have you spoken to someone from your DNO on the likelihood of your G99 application being approved?

Also check with your council on any planning restrictions on a array that big.

As for ROI it will largely be based on how much of that generated power you use.

 

[jmerten]

@yasserp Thank you for the advice.

I was thinking of using pv purely for selling power to the grid. I did some initial calculations for 10/20/30 kW and how much power I could produce (kWh).. wouldn't even start if the math doesn't add up

Now was thinking of checking other stuff... Not sure if I need to put all that calculations and math into a document before going to bank, DNO, etc., e.g. feasibility study or project documentation before I start talking to others...
I guess it would be weird if I show up in my local bank branch and ask for a loan without me showing the idea is feasible.... (I never asked for a load so not sure how the process works and if it is different for renewables)

 

[clothilde]

@jmerten

I was thinking of using pv purely for selling power to the grid.

I'm skeptical that will be profitable over the long run, let alone that it's a sound investment compared to the other options. This equipment has a limited life and historically has only been economically viable at domestic scale due to artificially high bonuses funded by the government.

If you're looking at a commercial scale installation the numbers might work out better but the fact these aren't springing up all over the place yet makes me think they aren't economically viable yet.

 

[alexm961]

@jmerten As well as the DNO and Council, you have to consider who will be paying you and how much they will pay.

Most energy companies are paying about 5p/kWh. Octopus will pay market-rates on a half-hourly basis. At the moment, that's very high. But it could drop in the future. I'd suggest contacting them - and a few other companies - to see what they will pay you.

If you have battery storage, you can save the electricity until prices are high and sell it for a greater profit. But batteries are expensive.

It sounds like you might be better off investing in an existing solar farm rather than going DIY.

 

[jmerten]

@alexm961 I wasn't really researching investing into existing farm. A quick search gives 6% ROI (https://www.thisismoney.co.uk/money...-farms-income-opportunity-ve-looking-for.html) while individual self-funded gives >10% (https://www.spiritenergy.co.uk/kb-solar-return-on-investment)

Articles are bit older and I should probably redo the math with new kWh/£ prices, but still it looks like self-funded has higher ROI.

 

[alexm961]

@jmerten Self-funded has a higher ROI if you value your time, land, and risk at zero.

If you have a large space that you're not using and you get permission to install and you're happy to maintain the panels and you have sufficient insurance and you can secure them properly and etc etc. Then you might be able to make more money than having someone manage all that for you.