Elmwood Golf Course Solar PV Initial Feasibility Study

Elmwood Golf Course
Solar PV Initial Feasibility Study
Prepared by: SAC Consulting
Contact:
Fiona Salter
Email:
[email protected]
Phone:
0131 603 7513
Date:
27th August 2015
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Initial Feasibility Study
Contents
1
Contents .......................................................................................................................... 1
2
Introduction ...................................................................................................................... 1
3
Solar PV........................................................................................................................... 2
3.1
The Process ............................................................................................................. 2
3.2
Findings .................................................................................................................... 2
4
Further Considerations .................................................................................................... 8
5
Conclusions ................................................................................................................... 10
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Initial Feasibility Study
Introduction
An initial feasibility study has been undertaken to establish the viability of a roof mounted
Solar Photovoltaic (PV) system at Elmwood Golf Course, Cupar. This report will outline the
viability of solar PV at this location, provide findings and make recommendations on the
suitability of this renewable energy option.
Two possible buildings have been identified as potentially suitable locations for roof mounted
solar PV arrays; the Pro-shop, and the Greenkeeping facility. Options exist to either pursue
the renewable energy development independently or to allow a developer to install and
manage the array. Both of these options will be assessed in this report.
PV systems generate maximum output during the summer months, during daylight hours. To
ensure that full utilisation is met by PV systems, an energy demand during this time is ideal.
For this site, the proximity of the roof based PV scheme to the existing golf course buildings
would lead to the electricity generated on site being able to be used efficiently during these
times. The panels can be installed onto existing structures and make use of vacant space.
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Solar PV
3.1
The Process
Initial Feasibility Study
Solar PV systems convert the sun’s energy into electricity, which can either be used on site
or exported to the national grid. Generating electricity in this way qualifies for Feed in Tariff
(FIT) payments, which can provide valuable additional income. Solar PV can also
substantially lower reliance on grid electricity and help to lower energy bills. This can be
beneficial, especially where there is a high electricity demand present that correlates to the
suns energy e.g. cooling throughout the day. Solar PV can either be roof mounted or ground
mounted. Roof mounted systems make use of existing vacant space and require south
facing, structurally sound roof space. Ground mounted systems require relatively flat, open
land, which is not protected/designated and not good quality agricultural land. However the
land that ground mounted PV is built on is sterilised from several other uses for the lifetime
of the project. For this feasibility study only roof mounted systems have been explored to
utilise the space that is available at Elmwood Golf Course.
3.2
Findings
Scale of Development
This study looks at the possibility of roof mounted panels on buildings at Elmwood Golf
Course. It has been determined that there are two buildings, which have relatively south
facing roofs that may be suitable for solar PV at Elmwood. These are the Greenkeeping
facility, with 348 m2 of available roof space, and the Pro-shop, with 42.5 m2 of available roof
space. This is dependant on the structural suitability of the roof space to accommodate the
panels, which will need to be determined. Given the available space and the average size of
a typical PV panel, along with expected average output per panel, it is anticipated that the
maximum scale of solar PV on each building could be;

Greenkeeping facility – 58 kW

Pro-shop – 7 kW
Notes –
Average panel size taken as 1.5 m2.
Average output per panel is estimated to be between 170 to 300 watts. For this location an
output of 250 W per panel has been used in the above calculations.
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These figures are based on the values given for, and measurements of the total roof space
available, however, in reality it is unlikely that the entire roof space will be covered in panels.
Annual Output
The PV potential for the site was calculated by determining the solar resource for this
location using Photovoltaic GIS. The angle of the roof has been estimated as 35 degrees.
From analysis of aerial photography and GIS, both roofs appeared to be facing South East,
which has been taken into consideration. These presumptions can be altered and refined at
a later date if required.
Taking this and the scale of arrays mentioned above into
consideration the expected outputs for each building per annum were estimated as;

Green keeping facility – 53,100 kWh

Pro-shop – 6,400 kWh
Revenue from the proposed development could be derived from various sources:

By offsetting the purchase of electricity from the existing supplier – therefore, saving
the retail price for each unit offset (calculations have used current rates provided by
the client);

By exporting electricity via the grid connection;

By receiving FIT payments for all power produced;
For this study a scheme limited to 50kW has been proposed with an annual output of 45,700
kWh. This corresponds best, based on the current tariff rates for FIT (Table 2-1), and is a
more realistic scale based on the likelihood of not being able to utilise 100% of the roof
space.
FITS
Under the FIT scheme, small scale generators are guaranteed a minimum tariff for the first
20 years of production from their installation provided they are approved by the regulator,
OFGEM. This tariff consists of two parts, an export tariff and a generation tariff, both of
which are index linked over the 20 year period. A better FIT tariff for PV is achieved by
connecting the panels to a building’s power circuits and then using the electricity to power an
occupied building; this would make any proposed scheme more viable than a standalone
system.
The export tariff is currently set at 4.85 p/kWh (at the time of writing, and including
inflationary increases applied up to, and including 1 April 2015). Generators can choose to
opt out of the export tariff and sell surplus energy at market price, if a demand is available.
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For this scale of Solar PV scheme the generation tariffs are:Table 3-1 Current FIT rates for Solar PV
After 1 July 2015 and
before 1 October 2015
(p/kWh)
After 1 October 2015 and
before 31 December 2015
(p/kWh)
Solar photovoltaic (other than
stand-alone) with Total Installed
Capacity greater than 4kW but
not exceeding 10kW
Higher Rate 11.71
Higher Rate 11.30
Middle Rate 10.54
Middle Rate 10.17
Lower Rate 5.94
Lower Rate 5.94
Solar photovoltaic (other than
stand-alone) with Total Installed
Capacity greater than 10kW but
not exceeding 50kW
Higher Rate 11.71
Higher Rate 11.30
Middle Rate 10.54
Middle Rate 10.17
Lower Rate 5.94
Lower Rate 5.94
Solar photovoltaic (other than
stand-alone) with Total Installed
Capacity greater than 50kW but
not exceeding 100kW
Higher Rate 9.63
Higher Rate 9.63
Middle Rate 8.67
Middle Rate 8.67
Lower Rate 5.94
Lower Rate 5.94
Stand-alone
4.44
4.28
Export Tariff
4.85
4.85
Tariff Description
The FIT scheme for solar now includes a planned quarterly degression of tariff rates for new
entrants, with the level of reduction varying depending on the uptake and increase of
capacity of Solar PV technologies over the previous period. Table 2-1 gives the rate that
applies currently (between July and October 2015) and the rate which will apply after this
date; with a degression applied (between October and December). After this date, there is
likely to be a further reduction in FIT rate, with the possibility of further degressions
throughout 2016. The higher rate of FIT applies where energy efficiency requirements are
met; the Energy Performance Certificate (EPC) for the building needs to be level D or above
if heated. The middle rate is for multiple installations where there are 25 or more other
eligible Solar PV installations (not relevant in this case), and the lower rate applies when
energy efficiency requirements are not met. For our calculations in Table 2-3 it has been
presumed that the higher rate is applicable and the scheme would be commissioned before
31 December 2015; giving a FIT rate of 11.30 p/kWh.
As there are two separate PV arrays on two separate buildings involved, there is the
possibility that they could both be treated as individual generators if both buildings have
separate meters with separate MPAN numbers. However, if they have the same meter with
the same supply point, and due to the fact that both buildings are likely to have the same
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owner, then it is more likely that the two rates would be a combined tariff. For the likely
scale of this development, and as the FIT rates for 4 kW to 10 kW and 10 kW to 50 kW are
currently the same, it will not make any difference in terms of income as to whether they are
treated individually or combined, however, this could change in the future. In the following
calculations for revenue (Table 2-3) a tariff for a 50 kW system has been presumed, where
panels could be installed entirely on the larger roof or split between the two buildings.
The UK Government are currently reviewing the FIT scheme and it is likely that there will be
some changes in the future. These changes are unlikely to affect schemes that have been
commissioned or have been pre-registered. A consultation published by the Department of
Energy and Climate Change (DECC) on Thursday 27th August 2015 indicates that FIT rates
could be heavily cut from January 2016; however, as this is currently out for consultation, it
cannot be confirmed at present.
Onsite Usage
The major electricity usages on site are detailed in Table 2-2:
Table 3-2 Electricity use per building per year
Building
2013-2014 (kWh)
2014-2015 (kWh)
Clubhouse
84,008
81,444
Pro-shop
13,128
7,744
Pump House
94,622
92,413
Total
191,758
181,601
Average price for electricity paid per unit for 3 buildings
10.32 (p/kWh)
Notes –
Data supplied by SRUC/Elmwood Golf Club.
“2013-2014” usage from 01 April 2013 to 30 April 2014.
“2014-2015” usage from 01 May 2014 to 01 May 2015.
There are some uncertainties regarding the reliability of the data as some of the figures used
were estimated readings as opposed to actual usage. There were also some unusual
readings for the usage in the pro-shop for 2014-2015.
Electricity usage across the various buildings is quite high and is greater than the electricity
produced by the solar plant. However, it has been established that some of the major
electricity demands, such as the irrigation pumps and lighting, will occur out with daylight
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hours, therefore, could not be supplied by the solar array. However, the clubhouse has a
high usage, which would correlate well with Solar PV as the clubhouse tends to be open
mostly during daylight hours; as a result this provides an opportunity to use a large
proportion of the electricity generated by the PV array on site. In the following calculations of
potential revenue (Table 2-3) it has been presumed that 50% of the electricity will be used
on site; this gives an average figure between the benefits you would get from export tariffs
compared to energy savings.
Potential Revenue
The potential earnings from the proposed scheme are outline in Table 2-3. It is estimated
that a roof mounted solar PV scheme at Elmwood would generate £5,164 from FIT income
plus an additional £1,108 from export tariffs and £2,358 in energy savings if 50% of the
electricity is used on site. Based on these predictions, the scheme would pay itself back
within seven years and the costs for the development are estimates based on similar
projects undertaken elsewhere. There would be an annual benefit to the business of £8,630.
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Table 3-3 Solar PV 43.8 kW potential revenue and payback
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Further Considerations
Grid
Enquiries will need to be made with SP Energy Networks (SPEN) to establish grid capability
and constraints surrounding the golf course location. Through SPEN’s Quote+ application
procedure, initial enquiries could be made to determine costs and timeframes for grid
connection. The Quote+ system is new and is aimed at providing more information over
shorter timescales, allowing customers to request an indicative study for up to 3 different
connection options at a particular location. This information would give an indication of the
possibilities for development, along with appropriate timescales.
Generally the more electricity generated that can be used on site, the more attractive the
scheme becomes. This results in reduced energy bills and can also lower the grid capacity
required, which can lower costs and help to ease constraints. Feedback from SPEN
regarding connection costs, dates and capacities will help to guide the decision process and
indicate what scales of renewable energy development are possible. This should be done in
the first instance if the project is to proceed beyond this stage.
Visual impact and planning
Solar PV panels should be installed in such a way as to minimise any adverse visual impact
to the area and minimise the impact to the appearance of the buildings. Due to the nature of
the development planning permission will need to be sought, however, it is not thought that
this will be difficult to obtain due to the scale of the project. Initial enquiries should be made
to the local planning authority to confirm this. Adherence to building regulations is required
when installing PV panels to a roof.
Developers
Allowing a PV developer to install panels on the roofs and then sell the electricity generated
at a reduced rate back to the golf course is a potential option. This will help to lower energy
bills as the rate being offered for purchasing the electricity from the developer is lower than
the rate offered by the current electricity supplier.
The developer will also take on the
majority of the risks of the project and cover the upfront costs. However, the majority of the
financial benefits in terms of FITs and export tariff will be going to the developer and not
Elmwood. Likewise you are not getting the full benefit of the electricity savings as you would
still be paying for the electricity generated by PV as opposed to utilising it for free when
available if done independently. Developing and operating the scheme independently would
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be the more financially beneficial option to Elmwood Golf Course as the full benefits outlined
in Table 2-3, would be kept on site as opposed to the majority of these benefits going to an
external developer.
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Conclusions
A roof mounted solar PV scheme appears viable at Elmwood Golf Course, with the
opportunity to generate additional income and savings for the business. There is the
potential to use a large proportion of the electricity on site when available, as well as gain
income from FITs. Due to reductions in FITs and possible further changes in the future it is
advantageous to proceed with the scheme as soon as possible to minimise the impact of FIT
degression and achieve the best rate of FIT possible.
Further study, including site visits to assess the suitability of the buildings and liaison with
potential suppliers of the technology will be required to refine these findings and progress
the project. Feedback regarding grid constraints and costs will help to determine the
schemes economic viability, alongside timescales for development.
The most financially beneficial option would be for SRUC to install the PV panels rather than
to allow a developer to “rent” the roof space or offer a reduced electricity price, as the benefit
of receiving an income from energy savings and FITs would result, as opposed to the
majority of the benefits going to a developer.
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