With 122 Solar projects spread across England, Wales, and Scotland in our CfD portfolio currently generating over 4,014 MW, Solar PV plays a crucial role in the generation of renewable energy, actively contributing to the energy transition and accelerating Net Zero.
Solar Photovoltaic (PV) systems convert sunlight directly into electricity using semiconductor materials. Comprised of solar panels, these systems absorb sunlight to produce direct current (DC) electricity, which is converted to alternating current (AC) electricity through an inverter for practical use. Excess electricity can be fed back into the grid, enabling a two-way energy flow.
With mounting structures and balance of system components, Solar PV systems can be tailored for various scales, offering benefits such as reduced electricity bills, minimal maintenance, and a significant contribution to sustainable energy practices.
Technology Benefits:
Solar PV systems offer a multitude of advantages, making them a popular choice for energy generation. They harness the renewable energy of the sun, providing a sustainable and eco-friendly power source. Users benefit from reduced electricity bills, as they generate their own electricity, leading to long-term savings. These systems require minimal maintenance, primarily periodic cleaning and inspections, resulting in cost-effective, low-maintenance energy solutions. They also grant greater energy independence, reducing reliance on centralised power sources and enabling users to weather power outages. Scalability, financial incentives, a long operational lifespan, job creation, and economic growth further enhance the appeal of Solar PV systems. Their versatility and ability to cater to various needs make them a key player in the transition to sustainable and reliable energy sources.
CfD Scheme Benefits for Investors:
The CfD scheme provides investors in renewable energy projects, such as Solar PV, with a stable and predictable income stream. This is because the scheme guarantees a fixed price for the electricity generated over a specified contract period (which is typically 15 years). Investors can count on a predetermined revenue, reducing the uncertainty associated with fluctuating energy prices. By offering long-term contracts and revenue support, the CfD scheme helps mitigate financial risks for investors. This can make renewable energy projects, like Solar PV installations, more attractive to a broader range of investors, including those seeking more secure and less volatile investment options.
The scheme encourages market confidence by providing a secure and predictable revenue stream for renewable energy generators. This confidence encourages further investment in renewable energy, leading to increased capacity and a diversified energy mix. Investors can have more faith in the long-term viability of renewable energy projects.
Investing in Solar PV projects within the CfD scheme not only helps accelerate the energy transition and advance the Government’s Net Zero goals but also presents a lucrative opportunity for investors, capitalising on the growing demand for clean energy solutions and ensuring long-term profitability.
Our most recent Allocation Round (AR5) saw solar projects securing almost 2GW of capacity out of a total of 3.7GW.
Investors keen on participating in the renewable energy market, especially through Solar PV projects within the CfD scheme, stand to benefit from both stable returns and the overarching goal of contributing to a sustainable energy future.