Solar sums begin to stack up
PROPERTY consultancy DTZ has said the rapid recent fall in the price of solar photovoltaic (PV) panels means landlords should look again at installing them onto buildings – despite recent changes to the feed-in tariff.
It said that prices of solar PV panes have dropped by around 50% in the last 12-15 months, meaning that “payback” periods for solar PV panels are now less than two years.
Moreover, buildings with solar installations are also more easy to sell or let, thereby increasing the investment value of a property.
Richard Chambers, a valuation director at DTZ’s Manchester office, said: “There is a growing feeling that we are at the bottom of the current economic cycle and forward-thinking landlords who have consolidated their financial position are thinking of ways to enhance their portfolios.
“Blue-chip occupiers are increasingly seeing the energy performance of buildings as a major factor following recent changes to EPC legislation in England and Wales. Landlords can gain a competitive edge by investing now and will enjoy the payback, both in terms of the installation itself, and by improving the marketability of their buildings.”
He added: “Energy price inflation shows no sign of slowing down, whilst occupiers are becoming more and more concerned about the carbon footprint of their buildings. Landlords who want to put themselves ahead of the field should be considering solar PV, which can offer a secure income stream as well as making their buildings more attractive to occupiers.
Meanwhile, a survey conducted by the NatWest and the National Farmers’ Union has showed that farmers have been the most likely to adopt renewable energy technologies, with almost a third of farmers already adopting at least one renewable source. Farmers in the north of England have been the quickest to adopt wind turbine technology, with uptake levels of 6% above the national average.
Moreover, one-in-six farmers nationwide are likely to have installed solar panel capacity by the summer.
Dr Jonathan Scurlock, NFU chief renewable energy adviser, said: “The NFU has been encouraging farmers and growers nationwide across all sectors to diversify into renewable energy for the past few years – but we are amazed at this level of uptake already.
“The potential of land-based renewable energy to support profitable farming, while contributing to energy security and the low-carbon economy, is evidently much greater than we imagined.”
