After a year in the doldrums the UK’s commercial solar pv sector is experiencing a new dawn.

Gone are the headaches, time constraints and frustrations imposed by planning, merciless commissioning deadlines and grid connection issues. Solar now enjoys greatly enhanced permitted development rights, much less reliance on subsidy and export limitation across all of the country’s distribution network areas.

The greatly reduced reliance on subsidy has been brought about by the combination of two factors. Lower capital cost of solar equipment and electricity price inflation. These two factors have come together in 2017 to provide ROI’s of around 15% and levelised cost of energy prices of sub 4p per kWh. So, returns and values for solar are back to where they were in 2011 -12 when it was the high subsidy rates that drove financial models!

The levelised cost of energy (LCOE) metric is such a key focus for all commercial and industrial users of electricity. It combines the capital and lifetime O&M costs of the solar development, subtracts any subsidy payment and divides this figure by the lifetime output of the array. The resulting pence per kWh figure is now typically below 4p /kWh. With current and future forecasts for significant electricity price inflation, LCOE’s at this level are a quarter of retail prices. Which business wouldn’t like a 75% reduction in its electricity bill!  Compelling figures that are available now to all companies using significant quantities of electricity.

Boston Renewables have all of the skills and expertise available to develop deliver solar pv arrays of any size. We look forward to engaging with the new band of companies keen to secure a long term source of cheap, green and renewable power.