Solar PV – when can Producers expect a return?
In our previous blog, ‘Renewables. Does it still pay for Poultry Producers?’, we investigated Cargills European Poultry business and established some of the reasons why 80% of Cargill’s Poultry Producers had deployed Solar PV on their UK Poultry Buildings.
In this blog, we will look at a typical 50KW Solar PV investment to discover what is the likely payback.
With the equipment costs for Solar PV falling significantly in the last few years, we would benchmark a price of just under £1,000 per KW for the capital costs including installation. A 50KW system in a typical UK year will produce annual revenues of approximately £6,400 and will save some 26t of CO2 per annum.
Based on the current 2016 Government 20-year guaranteed Feed in Tariff (FiT) the system would generate some £212,000 revenue over the twenty year period and deliver an electricity price for the Poultry Unit of 3p per KWh.
Payback for the investment would be around 7 ½ years.
The following table sets out the maths.
Please note the £50k investment also enjoys tax write-downs with an immediate 20% tax saving for a Poultry Producer in profit. For Producers wanting lower electricity bills, but without the cash to invest, there is also a plentiful range of Power Purchase Agreements (PPA) available.
To discuss Solar PV and how it can be deployed on one of our new installations or on an existing Powell building please just email us at firstname.lastname@example.org.
Figures courtesy of Caplor Energy.