Solar farm energy prices

[EddieSteadyGo]

I'm curious if anyone here knows the approx current prices that a 1 MW solar farm could expect to receive if they were to sign a long term power purchase agreement?

Looking online it seems prices seem to be around £60 per MWh which is only 6 pence per kWh, and that doesn't seem like much considering the current 'retail' price of electricity, so I'm wondering if I'm missing something?

I do realise there are probably a lot of variables, and getting such a system setup and approved would be quite a lot of work, but interested to know if the £60/MWh is roughly about right or if the market rate is now higher?

[MustangGT]

That is in the ball-park, you may get as much as 8-10p from some energy companies. Don't forget electricity (and gas) prices are lower now than 12 months ago. Also, commercial tariffs are generally lower than domestic because of the quantities.

[coetzeeh]

The 6p you mention is the commodity price only. Now add all the non comm costs such as Transmission cost, Distribution, green taxes, supplier margins, metering costs and that adds another 15p on top.

[EddieSteadyGo]

coetzeeh said:

The 6p you mention is the commodity price only. Now add all the non comm costs such as Transmission cost, Distribution, green taxes, supplier margins, metering costs and that adds another 15p on top.

Oh right, that's a good point and explains the reason why the price a consumer pays for their electricity is so much higher.

[covmutley]

Connecting to the grid, or private wire? The latter is obviously higher.

I got planning permission for a large solar farm and it had both gridcl connection and private wite to a large industrial plant. I don't know details other than that the private wire price they got was way higher.

[Geoffcapes]

£60 per MW is a decent price for a PPA (6p kWh), I assume it's index linked as well?

The length of the PPA also makes a difference to the price.

As has been mentioned above, the not commodity costs are about 12-13p kWh to add on top.