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Case Study

Piper's Close aerial shot with solar PV array

Piper's Close

  • Solar PV array
  • Annual saving on electricity bill for tenant - £13,500
  • Annual benefit for client - £43,500
  • Total combined benefit over 20 years - £1,140,000
  • Power Purchase Agreement (PPA)

The Client

Dartmeet Developments is a Devon based property developer and certainly a perfect candidate for Solar PV Array developments. They are the successful offshoot of Dartmeet Services Ltd (DSL).

DSL is a long-experienced engineering and fabrication company, specialising in industrial and domestic sectors. Specifically, they fabricate in ferrous and non-ferrous metals at their 4,500 sq. ft facility.

Over the years, DSL has conducted a wide variety of projects for their clients. This includes portal structures, platforms, walkways, process pipe work, and guarding systems.

Usually, DSL’s package includes bespoke design, manufacture and installation. Frequently, they also work in partnership with a broad range of structural engineers. Such partnerships significantly extend their capability.

Another key point is that they also build a wide range of properties, spanning domestic dwellings through to large facilities and warehouses.

The Challenge

For a world leading pipe and fittings manufacturer, DSL built a new 30,000ft2 commercial unit. The company already rented out a nearby 9,000ft2 unit to this client. A different tenant let another 4,500ft2 unit on the same development.

In order to meet Planning Permission and Simplified Building Energy Model (SBEM) requirements for the new 30,000ft2 building, a large Solar PV array was needed.

For this reason, IU Energy designed and fitted this array as well as retrofitted the existing 9,000ft2, and 4,500ft2 units.

Additionally, we were asked to register the project for Feed-in-Tariff, as well as applying for and securing a Power Purchase Agreement (PPA). A PPA is where the owner of a Small-Scale Embedded Generator (SSEG) system arranges for the design, permits, financing and installation of a renewable energy system. Fitted at a tenant or customer’s property, the installation has little to no cost to them.

Ultimately, a PPA works because the SSEG owner sells the power generated to the tenant at a fixed rate. Furthermore, this rate is usually lower than the local utility provider’s retail rate.

The Solution

In the first place, IU Energy conducted a detailed site survey. Subsequently, we designed and installed three tailored arrays at Piper’s Close –

  • 150kW PV system on the new 30,000ft2 unit
  • 100kW PV system on the 9,000ft2 unit
  • 50kW PV on the 4,500ft2 unit

In this case, all systems were East/West split, with an expected combined annual generation of 269,100 kWh.

The Results

In short, delivery of the entire system was on-time, within budget.

The benefits are three-fold and significantly long-lasting.

  1. Our client benefits from FiT
  2. Our client receives long-term income from the PPA
  3. The tenant benefits from reduced energy costs, also from the PPA

To enumerate –

  • Yr. 1 earnings from FIT (£) † – £30,000
  • Annual PPA – £13,500
  • Annual benefit for client – £43,500
  • Annual saving on electricity bill for tenant – £13,500
  • Lifetime benefit for tenant (20 years) – £270,000
  • Total combined benefit over 20 years – £1,140,000

† Earnings will rise with inflation because of the link between FiT payments and the Retail Price Index (RPI).

The overall figure represents a payback of 4.5 years and a 17% ROI.

“We are very impressed. Not only was this extensive project delivered without drama, it’s already
delivering the £45,000 a year for 20 years as promised.”

Carl Payne

Director

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