Our research shows there are a hundred or so developers in the UK with one or more incomplete solar farm projects and we expect that many of these will encounter cash flow difficulties over the next few months.
Reduced subsidies and energy prices together with increased construction costs following the fall in sterling post-Brexit are adversely affecting the values of the UK solar farms. These changes coupled with a slowdown in investment activity are making it difficult for many solar developers to raise the financing necessary to complete projects ahead of the ROC subsidy cut off at the end of March 2017. For some there may be no realistic prospect of successful completion until construction prices and/or subsidies change radically.
Many developers will have to make choices between making essential payments to keep projects alive or paying historic creditors. We have been working with business owners in the solar energy industry for over three years to help manage exactly this type of situation.
In particular, as business rescue and insolvency specialists we were involved in the refinancing of solar farms at Ford Farm in Cornwall and Wymeswold in Leicestershire, at the time the largest solar project in the country. Our solution was to buy time with creditors using innovative insolvency tools and bring together new engineering and financial partners able to guarantee the performance of the solar farms.
We welcome you to contact us if you have any projects that you would like to discuss or are interested in acquiring sites that become available.