Notes on yield calculations
The consultant engineers report gives the initial calculation of yield before the solar plant is developed. The annual energy yield from a solar plant is dependent on irradiation from the sun. Experience has shown that due to climate change sunlight has increased by more than 0.5% per annum in recent years. Our calculations are only valid for one year after that there will be of degradation approximately 0.15% -0.25% although this has been offset by increases in irradiation in recent years. The costs for the operation of the plant are preliminary and based on the operation costs of comparable plants. The amount ultimately depends on the level of operational costs that actually occur in each
operational year.
The income guarantees
Through existing government support programs such as the “Renewable Energy Law” (EEG) in Germany the relevant regional electricity network is obliged to purchase the generated electricity and to compensate for it at a fixed “Feed-in Tariff” for a period of 20 years. The life expectancy of the photovoltaic plant is however far longer than 20 years. The operators of the solar plants will receive the feed-in tariff guaranteed amount per Kilowatt-hour which will be guaranteed in the first year of operation. Because solar radiation can be predicted quite accurately (unlike other forms of renewable energy such as wind power) and because climate change tends to increase the amount of radiation there are relatively minimal risks involved in this investment. After the term of 20 years is completed there is the possibility to extent the leases on the land which normally have 2 options of 5 years. Since all outstanding debt will be paid off at that time the operational costs will still be at a very low level the investment should prove to continue to be very lucrative!
The security of revenue from a facility
At the centre of focus in our investment concept is the security of revenue through the following points:
20 years of guaranteed electricity price by the “Renewable Energy Law” (EEG) or similar
To secure a warranty from the relevant solar modules manufacturer for a performance rate of minimum 80% after 25 years
The use of high quality of inverters
The land purchase contracts or the leases for the 20 years with the property owners and the twooptions of five years
The non-reliance on cynical cycles in the economy
Thanks to the country-specific feed-in tariffs within the EU the investor can expect a steady income regardless of financial crises and economic recessions.
The Risks
The EU's Policy
The Energy Providers
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