Solar Farm Development Finance on Agricultural Land in Wiltshire
£420,000 · 15 years · 6.10% fixed. A Wiltshire farmer had secured planning consent and a grid connection offer to develop a 500kW solar farm on 5 acres of his less productive land, with a 25-year power purchase agreement (PPA) with an energy company.
The Client
Wiltshire farmer
The Challenge
A Wiltshire farmer had secured planning consent and a grid connection offer to develop a 500kW solar farm on 5 acres of his less productive land, with a 25-year power purchase agreement (PPA) with an energy company. The capital cost of panels, inverters, and connection was £410,000. Agricultural lenders vary in appetite for renewable energy on farmland.
Our Solution
Doulton identified a lender comfortable with agricultural land being repurposed for solar under the right planning and PPA conditions. The 25-year PPA provided exceptional income visibility. The solar panels and equipment were accepted as additional security alongside the land. The loan term of 15 years was well within the PPA period.
The Outcome
Solar farm operational within six months of finance completing. Annual PPA income: £68,000. Loan fully serviced from PPA income with £32,000 surplus annually. The farmer has retained the remaining agricultural land for arable production. Key highlights: 25-year PPA provided exceptional income visibility; Solar equipment accepted as additional security; £68k annual PPA income - £32k surplus after full loan service.