A new 12 MW solar farm constructed by Cambridgeshire Council Council is to be officially opened next week.
The 60 acre site near Soham is set to generate £1m a year in revenues once a £10m loan used to fund the project is paid off. Before that the council will generate annual revenues of around £350,000. The return is estimated at 7% per annum.
Loan funding was obtained from the Public Works Loan Board at 2.63%, repayable over 25 years.
Last year it was revealed the price of the solar panels used in the development put an additional £500,000 on project costs as a result of exchange rate fluctuations following the Brexit referendum.
Though officially opening this month, the site began generating electricity in December, enough to power 3,500 homes. The initial plan involved keeping the solar panels in place for 25 years, though that period could be extended.
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Cllr Ian Bates, chairman of the economy and environment committee, said: “When I talk to our communities they are rightly keen that we spend our money wisely and by finding a way to create income, these extra millions can be spent on much used frontline services.
“This county council solar park project is a great investment as it means we are producing renewable energy and income while reducing the need either to make cuts or ask our residents to make up the shortfall through additional taxes. But this is just one example of the many things that we are doing to make the best use of our assets.”
The project comes as part of a larger plan in Cambridgeshire known as Mobilising Local Energy Investment which won £700,000 in grant money from the European Commission.
The solar farm won backing and financial support from central government as part of its “contract for difference” programme which was created to reform the energy market. Contracts for difference pays the difference between the “strike” price for energy (effectively a cost price) and the expected market price.
