Just under 50kW

[solgen]

I have an opportunity of installing a sub 50kW (49kW) system where the panels would be ground mounted approximately 200M away from a main building. The panels would be located right next to a pole mounted 11kV transformer.

1. Is it possible to connect directly to the transformer?

2. Would it make economical sense for the customer to do this?

3. How is this done I've looked at G59, however, I'm not clear and would appreciate any example circuit diagrams/ block diagrams to aid my understanding even if it doesn't make economic sense. I know that there are parts of an installation that are non contestable and I assume that is everything between the inverter and the transformer!?!

4. Would it make more sense to supply everything to the house 200M away? Besides voltage drop, what are the associated problems?

5. Can some of the 50kW be diverted to the house and the rest straight to the grid.

Sorry lots of questions here which I suspect require quite detailed answers.

Thank you

 

[stretchyboy]

You need to contact the DNO anyway under G59, they will let you know if you can connect at the tranny, they usually have fuse outputs anyway and you can fit a board and metering there although you are going to miss out on the house using some of the supplied energy, this alone might make it unfeasible for the client. Have you worked out how much they'd lose over twenty five years?

 

[solgen]

Yes I agree the building misses out on using generated energy. I just have to make sure the 1% voltage drop is taken care of check the the extra 72A per phase is feasable.

 

[TedM]

The FiTs rate payable would also be different. Assuming install complete before 1st August:

stand-alone 49kW = 30.7p per kWh
house 49kW = 32.9p per kWh

after 1st August:

stand-alone 49kW = 8.5p per kWh
house 49kW = 32.9p per kWh

 

[solgen]

Yes very good point

 

[solgen]

Hi Ted, So just to clarify...

“Stand-alone” means not attached to a building and not wired to provide electricity to an occupied building.

So it makes financial sense to supply all the generated energy back to the property and maintain the 30.7p per kWh tariff beyond August?

By the way, this building isn't a domestic property so is deemed commercial. Are there any other implications other than the export tariff being taxed at 5%?

Thanks

 

[BruceB]

Stacks of implications if a business:
VAT charged on installation at 20% not 5%
But VAT can be reclaimed by business if vat registered.
Export tariff has VAT attached (5% rate).
FIT and export tariff income are subject to corporation tax.
Capital allowances can be claimed.
Note Annual Investment Allowance reduces from £100K per annum to £25K per annum next Apr.

And probably a few more

Regards
Bruce

 

[solgen]

Just to double check...

A ground mounted system - 9kW which supplies a commercial building (not a new build). The current tariff for this would be 37.8p and then all the taxes associated with a commercial property are applied?

 

[TedM]

Yes - 9kW connected to a building would be 37.8p. To clarify the 5% VAT on export tariff. This only applies if the business is VAT registered - and they then have to hand the VAT part over to HMRC as part of their VAT return anyway - so it can effectively be ignored, as can all VAT inputs/outputs for a VAT registered business, as far as taxable profit is concerned.

 

[Noddy67]

Hi, Fantastic concise post so far - thanks you've answered a lot of questions I had. But of course just two more:

1. Any special implications for a primary school - I assume they're VAT free but would they be considered commercial after the 1st August?

2. I'm guessing the school won't be looking for a massive installation (sticking to the 16amps per phase and maybe only using two of the three phases? I assume it's all under the G59 guise.

If anyone has had any experience of working with the schools/their local authorities I'd be grateful to know what the process is like (ie do they insist on their own structural engineer etc etc.)

 

[BruceB]

You must not get your answers on VAT from this forum. If you get it wrong you will pay large penalties. A good question to ask would be where is the answer. For VAT on renewables it is here:
HM Revenue & Customs
Look at 2.1 and 2.17.
A LEA school is not a 'charity' and is not necessarily a 'relevant charitable purpose' - the last government removed that presumption about education if I recall correctly, in order to mess independent schools around. You might need proper advice.
Regards
Bruce