Solar-Powered Light At End Of Tunnel?

If there is light at the end of the tunnel for investment in solar power, it might well be that the light is being held in one of eight arms. Or perhaps there will be one in each.

That is the slightly facetious but still admiring reaction to the news that Octopus Investments announced today that it has successfully funded the installation of 11 large scale solar power sites throughout England ahead of the August 1 deadline for the government-backed Feed In Tariff incentive offered to larger scale solar power sites.

We are told that completing the sites was a huge undertaking for Octopus’ partners, Lightsource Renewable Energy, who were responsible for developing each of the sites (Promens site pictured below). The investment has funded the installation of 118,000 solar panels, with a total rated capacity of 30MW. The capacity will deliver around 26GWh each year, enough to power 7,400 homes.

The solar farms have all been connected to the National Grid well in advance of the cut-off point of August 1 when the incentive for large scale sites ends. All the funded sites have thus qualified for the Feed In Tariff.

The 11 completed sites now producing power make Octopus Investments the largest investor in the UK solar generation sector.

Paul Latham of Octopus Investments said: “We have been able to deliver these sites with finance from VCT and EIS funds which have attracted many small scale investors. When the deadline for FITs qualification was brought forward, it posed some significant challenges and there was a lot of gloom amongst funders and developers.

“Whilst some investment companies withdrew, we held our nerve. Our approach was to look at what could be built within the timescale to qualify for the scheme. It shows Octopus have the capability to raise the funds and with our partners Lightsource, the capacity to deliver successfully.

“All along we have been able to work closely with Her Majesty’s Revenue & Customs to ensure it met with approval and the result is we have attracted the kinds of small investors it had been hoped would see the benefit of the Feed In Tariff. We are already offering investors access to small site solar through open products.” 

Nick Boyle, CEO of Lightsource Renewable Energy added: “It is particularly pleasing to know that our hard work has paid off. By identifying the sites we knew could complete in time and knowing that our funding was in place from gave us confidence to push ahead. As a result, we are now the leading company in the sector and we’re looking forward to further developments in the near future funded by Octopus.”    

Solar sites funded by Octopus Investments and Developed by Lightsource:

Howbery, Oxfordshire; Wheal Jane, Cornwall; Benbole, Cornwall; Sandhill, Somerset; Hawton, Nottinghamshire, Long Sutton (Moor Farm 1 & 2), Lincolnshire; Wilburton, Cambridgeshire; Promens, Beccles, Suffolk; Howton Farm, Cornwall; Marston, Lincoknshire; 

Lightsource Renewable Energy Limited is a major British Solar energy developer and operator with a number of projects currently under construction throughout the country. Lightsource is UK based with a growing development team of experienced solar engineers, planners, and project managers. Founded in 2010, the company has made rapid progress over the past two years, establishing itself as the pre-eminent player in the UK Solar PV sector.

Octopus Investments, founded in 2000, is an investment specialist offering core and satellite investment solutions to UK investors, and a wide range of funding options for exceptional companies. It says that its commitment to solar and its funding of solar energy companies have enabled small scale investors to become part of the UK’s growing renewable power sector.

Octopus says it offers a range of core investments including a discretionary management service, multi-manager multi-asset OEICs, and single manager OEICs. These are complemented by a range of satellite solutions, including venture capital trusts, enterprise investment schemes and inheritance tax products. Its funding solutions cover the entire capital structure, from equity through mezzanine to senior debt.