Structuring your solar park project
The first three steps, 1. initial assessment; 2. site survey and connection assessment; and 3. the planning application are outlined here. You then need to choose how to move forward:
Step 4 - Project structuring
Once planning permission has been obtained, you then have a consent which is of real value.
You can now consider any of the project structuring options outlined below and decide how to structure the project. Ownergy will again work with you to identify the relevant project structure and can introduce funding or development partners where appropriate.
A number of different models for structuring these projects have already emerged, which can broadly be classified as follows:
- As the site owner you can develop the project yourself and be the primary beneficiary of the tariffs and the income stream. Within this approach you could prospectively seek debt finance for a part of the cost from your bankers or a range of other finance providers now entering the market. See Step 5. Project Management.
- You could establish a Special Purpose Vehicle (SPV) to undertake the project. This would provide the flexibility to bring in other investors to share the funding, and prospectively to take advantage of tax breaks such as the Enterprise Investment Scheme (EIS) . Such SPVs may also be able to leverage through debt finance as above. See Step 5. Project Management.
- You could allow a third party developer to implement the project and collect the revenues, in exchange for an agreed land rental . In this case your income would be substantially lower, but your risk and capital expenditure profile would also be reduced. Read about how we help with land lease.
Ownergy has the expertise to work with you whichever approach you adopt as shown on the relevant pages of this section of our website.