“Use it or lose it” was the phrase that occurred to me as I sifted through the various proposals from the ten solar companies that approached me.
We have an ESB substation on a plot of land the ESB acquired from my father many years ago. Up to now, we had always regarded it as a nuisance that jutted out into a nice square field but all the companies had identified the station as having spare capacity to take in extra power generated by renewables.
I became, to be honest, bamboozled by the various combinations of offers and of course, most were saying that the window of opportunity to apply for a grid connection was limited so I had better sign up now.
Part of the problem with the delay in the formation of the new government has been the delay in policy and even operational decisions across a whole range of areas. There were reports that the strict queuing in order of application was not going to be operated by the ESB but all applications would be assessed that were in before the cut-off date – again, rumoured to be 1 June.
I had been dithering over what to do for more than six months, so eventually, having consulted with one of the major professional firms, I chose an established operator. I have only signed a consent to apply for a connection form and we have a long way to go before planning and leases are in place. But all the offers started at a minimum of €1,000/acre per year. We drew up a shortlist and wrote to each of them asking for their best offer.
One wrote back saying they were not going to get involved in an auction process but the rest replied with adjustments.
One of my farming neighbours with a family history of successful diversifications said I should apply and develop the project myself but at this stage of life and family cycle, I am not prepared to borrow up to several hundred thousand euro per acre with all the attendant risks.
It’s probably cowardice and lack of real entrepreneurial spirit but the decision to simply take the €1,000/acre index-linked is taken unless there is some extraordinary change in circumstances. €1,000 plus per acre is, as far as I can see, far more than I am likely to make from conventional farming on the land that is earmarked for the solar farm.
But the first step has been taken and a lot of water has to flow under the bridge before it’s up and running. We need clarity on planning and on tax – both capital and income.
I saw on last week’s Irish Farmers Journal online app that Minister Michael Creed had said that he had been informed by the Commission that solar farms will not be eligible for the Single Farm Payment – I wonder will it be as black and white as that.
It’s just one of the many areas I will need clarification on and only clear policy decisions by the Government on its attitude to renewable energy can set the operating environment for farmers and the companies involved.