Solar photovoltaic (PV) parks, also known as solar farms, are large-scale installations designed to generate electricity for sale to the grid.
As the UK pushes toward achieving its net-zero emissions targets, solar PV parks play a pivotal role in the transition to clean, sustainable energy. For developers, selling energy through Power Purchase Agreements (PPAs) offers a stable revenue model while contributing to a greener energy mix.
This guide by Haush, explores the critical steps to developing a successful solar PV park in the UK, focusing on grid-connected projects designed to sell electricity through PPAs.
Step 1: Assessing Feasibility and Site Selection
Selecting the right site is fundamental to the success of a solar PV park.
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Solar Resource Evaluation
Use solar irradiance data from tools like PVGIS to assess the site’s energy-generation potential. A high level of solar irradiance ensures maximum energy output and profitability.
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Land Suitability
Ideal sites for solar parks are large, flat, or gently sloping areas with minimal shading and proximity to grid infrastructure. Brownfield sites, low-grade agricultural land, or disused spaces are often preferred to avoid conflicts with land use priorities.
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Grid Access
Proximity to the electrical grid and the capacity of the local network are critical factors. Early engagement with the Distribution Network Operator (DNO) helps identify grid connection feasibility and costs. Please note that there is a capacity constraint for the UK National Grid, and you can expect to only connect in the early 2030’s. See the Haush Article that highlights this problem.
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Environmental and Planning Considerations
Conduct preliminary assessments to evaluate the environmental impact of the proposed project. Avoid areas with protected wildlife habitats, Sites of Special Scientific Interest (SSSIs), or flood-prone regions.
Step 2: Navigating Regulatory and Planning Requirements
Solar PV parks require adherence to a robust regulatory framework and planning permissions.
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Planning Permission
Solar PV parks typically require full planning permission from the local planning authority. Submit an application that includes:
- Environmental Impact Assessment (EIA): Evaluate potential effects on biodiversity, water, and visual landscapes.
- Community Consultation: Engage local stakeholders to address concerns and build support.
- Visual Impact Studies: Provide photomontages showing how the park will integrate with the surroundings.
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Grid Connection Approval
File a G99 application with the DNO to secure permission for grid connection. This technical process ensures the network can accommodate the solar park’s output safely.
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Compliance with National Policies
Ensure alignment with UK policies such as the National Planning Policy Framework (NPPF) and renewable energy goals. Compliance with wildlife protections under the Wildlife and Countryside Act is also essential.
Step 3: Project Design and Technology Selection
Optimising the design of your solar PV park enhances energy output and reduces operational challenges.
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System Design
Develop a layout that maximises energy capture while minimising shading and land use conflicts. This includes determining panel orientation, spacing, and inverter placement.
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Technology Choices
- Solar Panels: Use high-efficiency monocrystalline or bifacial panels for optimal performance.
- Inverters: Select reliable, scalable inverters that suit the park’s capacity.
- Tracking Systems: Consider single-axis trackers to boost energy yield by aligning panels with the sun’s movement.
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Energy Storage
Integrating battery storage systems can enhance revenue by storing surplus energy for sale during peak demand periods.
Step 4: Securing Financing and Revenue Models
Large-scale solar PV parks require significant capital investment. Establishing a robust financial plan is crucial for success.
Funding Options
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Equity Investors
Partner with renewable energy funds, institutional investors, or private equity firms.
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Debt Financing:
Seek loans from banks or financial institutions specialising in green energy projects.
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Grants and Subsidies:
Explore UK government or local funding initiatives supporting renewable energy.
The National Wealth Bank has £27.8bn of financial capacity for these types of green infrastructure projects and is worth engaging once you have secured the site, the planning, OEM, EPC and off-takers.
Revenue via Power Purchase Agreements (PPAs)
PPAs provide a stable revenue stream by selling electricity directly to businesses or energy suppliers. Types of PPAs include:
- Corporate PPAs: Long-term agreements with businesses seeking to secure renewable energy.
- Utility PPAs: Contracts with energy suppliers or grid operators.
The Smart Export Guarantee (SEG) provides an additional mechanism for earning income by selling surplus energy at market rates.
Step 5: Construction and Commissioning
The construction phase requires careful planning to minimise delays and ensure compliance with regulatory conditions.
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Pre-Construction Planning
Develop a comprehensive construction plan covering land preparation, transportation of materials, and site safety measures. Coordinate with contractors to adhere to agreed timelines.
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Installation and Testing
Install panels, inverters, and grid connections while following best practices for quality and safety. Conduct rigorous testing to ensure optimal performance and compliance with technical standards.
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Grid Integration
Work closely with the DNO to finalize grid connections, ensuring seamless energy export to the network.
Step 6: Operation and Maintenance
Efficient operation and maintenance (O&M) maximise the productivity and lifespan of the solar PV park.
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Monitoring Systems
Implement advanced monitoring systems to track performance, detect faults, and optimise output in real-time.
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Scheduled Maintenance
Regular cleaning of panels, inspections, and equipment servicing are essential to maintaining high efficiency.
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Lifecycle Management
Plan for the decommissioning or repowering of the solar PV park at the end of its operational life. Repowering involves upgrading components to newer, more efficient technologies.
Step 7: Leveraging Environmental and Financial Benefits
Solar PV parks offer dual benefits: environmental sustainability and economic profitability.
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Environmental Contributions
By generating green energy, solar parks significantly reduce greenhouse gas emissions, supporting the UK’s net-zero targets. Developers can also earn Renewable Energy Guarantees of Origin (REGOs), which certify the renewable nature of the electricity produced.
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Economic Impact
Selling electricity via PPAs provides a predictable income stream, making solar PV parks an attractive investment. Battery storage and peak demand pricing further enhance financial returns.
Overcoming Challenges
Common challenges in solar PV park development include grid constraints, regulatory hurdles, and local opposition. Mitigate these by:
- Conducting thorough feasibility studies and early DNO engagement.
- Building strong relationships with local communities and stakeholders.
- Staying updated on evolving energy policies and market trends.
The Future of Solar PV Parks in the UK
As the UK accelerates its transition to renewable energy, solar PV parks are poised to play a central role. Advances in solar technology, supportive government policies, and growing demand for green PPAs create a promising landscape for developers.
By following this guide, you can turn sunlight into sustainable power, driving both environmental progress and economic success.
The grid is ready – are you? Let’s power a greener future together. 
The post Developing Solar PV Parks for Grid-Connected Power Sales in the UK first appeared on Haush.