Currently there are two solar farm sizes that maximize revenue and fit nicely in to the California program formats. The first is a 3MWp AC farm which is about 3.5MWp DC. The other size option is as near as possible to 20MW AC or 23.5MWp DC. Both the farm sizes come under different electric company programs. This project overview document is targeted on 20MWp projects.
This guide is designed to provide landowners with a model so that they can be involved in the solar farm industry.
The vast majority of solar farm development groups search for a suitable piece of acreage and offer to lease or purchase the land. Many land owners commonly are not enthusiastic about selling but give consideration to leasing. Upon close examination the landowner learns that the lease option is not so excellent.
Solar Land Partner's solar farm business plan addresses this concern in lots of ways as explained within this outline.
Owner participates directly with Solar Land Partners within the development stage. Owner's involvement comes with a modest $550-775K to cover permitting, application fees and also other costs involved with the development of a solar farm business plan. Nearly all this expense is really an electric company deposit of $20K/MW requested. Ex. 20MWp solar farm PPA application requires $400K deposit.
The legal framework along with professional work needed to accomplish the primary development work are provided by Solar Land Partners so a project is shovel ready. By working collectively the landowner keeps cost down but, moreover, participates in the upside of the project well beyond a straightforward lease payment.
When the project reaches a specific stage it can then be made available to investment groups that are positioned to invest in the solar farm project. These groups come in and do the hard work financially by providing the construction funds etc.
As soon as the project funds, the landowner will get his original investment capital outlay back 2x. The land lease is negotiated at a good rate plus the landowner receives an equity position in the project. The long term equity position is of great importance but can certainly be negotiated as a onetime net current value buyout.
An alternative option for 20MWp solar farms includes the scenario in which the land is owned by an individual or investor group who fund the complete project in house. Solar Land Partners delivers turnkey services from permitting to interconnection and continuing O&M.
The solar farm business plan outline explains certain tasks to be completed with this project guide. Work undertaken includes;
Interacting with your building department the landowner and Solar Land Partners collaborate to fulfill permit issuance such as furnishing engineering and Submittal Package documents.
Securing of a PPA agreement with the electric utility company with a favorable feed in tariff consistent with the planned solar farm and expected financial projections for this project is also presented in the project financial documents.
Negotiations with qualified EPC company to supply a best-bid analysis and assessment of the future stability and record of all suppliers in order to guarantee that the financial returns projected are met from the solar farm investment decision.
Supervise the project execution through construction and interconnection.
Supply ongoing O&M services.
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