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Farmer In Hampshire Leases Solar Farm

Earlier this summer Hamish Janson had 100 solar modules installed on his Hampshire farm in Newton Valence with the support of Reality Finance Solutions who are leasing experts based in Godalming.

Hampshire farmer sees the financial benefit in installing solar farm

Although only a small solar farm it will produce 21,000 kWh of electricity per annum. Fifty per cent of this energy will be used to provide power to the big storage and drying plant on the farm that costs in excess of £1,100 per annum to operate.

Mr Janson, commenting as to why he had chosen to contact Reality Finance Solutions to investigate the option of leasing to set up the solar panel farm, said: “The leasing route was a good idea and will give me a return of 12 per cent before interest. Leasing is a weapon to use instead of bank finance as I wanted to do this off balance sheet and at a fixed rate for five years. This was a sensible way to go.

“There’s also a tax angle as you get an immediate write-off on the leasing payments and we’re deferring the payment of £38,755 capital.”

It is forecast that the annual income from the solar panel farm will get to £4,630 resulting in a return approaching 12 per cent before tax and depreciation.

Jon Leslie, Managing Director at Reality Finance Solutions stated: “We’re delighted to have been able to help Hamish create his solar farm, which, is such a strong trend that more than a quarter of UK farmers are using renewable energy, according to a recent report by the National Farmers Union and NatWest.

“Now it’s promising to overtake rural tourism as a secondary income for the agricultural sector. Of course, we’re very happy Hamish saw the commercial sense in leasing, and we’d be delighted to help anyone wanting to go green – farmers or commercial enterprises.”

Not only will the solar panel farm provide a competitive return it will also reduce the farm’s annual carbon emissions by in the region of 11.5 tonnes of CO2 .

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