FUNDED PV SCHEME
FREE SOLAR PV SCHEME
Mercantile investors are proud to offer a fully funded solar PV system to selected sites.
As a company built on an excellent reputation, and looking to build long term relationships with
our site partners, we believe that all questions should be answered clearly and openly.
Solar PV systems are complex sets of equipment, and the electricity that they produce can
be a business critical product.
A full understanding of the benefits and the facts about installation are essential to ensure that the systems are fitted to any host site’s exact requirements.
Define key parties:
Host site:- The site at which the solar PV system and building to be powered are
Mercantile Investors:- The aggregator who will for this document include any accepted offer
from the opportunity to a panel of investors who become the owner of a solar PV system.
Site owner:- The owner of the host site.
Site occupier:- The occupier of the host site
1. What agreements will need to be put in place to take advantage of the scheme?
Mercantile Investors and the owner of the host site will need to put in place an agreement
that covers two key areas: lease of the space to mount the solar PV system and the
terms of purchase of the produced, low cost and renewable electricity. These
agreements will cover a period of 20 years and will form the basis of the long term
partnership that will be formed between Mercantile Investors and the host site owner.
2. Who pays for the equipment? Who owns the equipment?
Who pays for maintenance and servicing of the equipment?
Mercantile Investors’ will completely fund the installation of the solar PV
system and associated metering and control equipment. Mercantile Investors
will retain ownership of the system and infrastructure up to the point of connection with the building’s main electrical circuits. Once the lease period comes
to an end the ownership will pass to the site owner. During the time that Mercantile Investors
investment partner is the owner of the equipment we will cover all the maintenance and servicing costs for the system. The service and maintenance programme put in place by us will ensure that the equipment is in pristine condition when handed over at the end of the lease
3. Who receives the Feed in Tariff, Export Tariff, ROCs, LECs & REGOs?
Mercantile Investors funding partner will receive the Government supported financial incentives for the duration of the lease. This will cover the ongoing maintenance & operations costs,
as well as eventually repaying our finance costs and offering us a profit
4. Is there any cost for the electricity generated and used on site? How is this measured?
Solar PV systems can generate a huge quantity of power. Using this power locally
on site makes commercial sense as it does not need to be transmitted to other sites.
This avoids transmission charges and power losses between the point of generation
and use. Power supplied to site will be billed to the site owner at the same “gate price” rate at
which Mercantile Investors could sell the power directly to the power companies (the
Export Tariff level). This is a vastly reduced rate when compared with the purchase
price. As of early 2013, this price was 4.5p/kWh for smaller sites and slightly more
for larger sites. This price will rise in line with the export tariff applicable to the
system, thereby giving no advantage to Mercantile Investors to sell the power offsite.
The solar PV system will be fully metered. The power generated will be metered, as
will the power exported. The difference between generated power and exported
power will be deemed as consumed power.
5. How does the electricity feed into the existing electricity system?
The solar PV system will be connected into the existing electricity system.
This connection will be located either on the building side of the main
incoming electricity supply or to the main distribution boards around the
Power from the PV system will feed into the existing electricity system at a
slightly increased voltage, or pressure, when compared with the National Grid.
This means that electricity will flow from the PV system towards the National Grid. If
there is a draw from the host site the power from the PV system will flow to provide
this and then any excess will flow out to the National Grid. As the National Grid is
also trying to provide power to the building, if ever the electricity generated by the
solar PV system is insufficient to meet the onsite power demand any shortfall will be
met by the National Grid. There is no user input required for this to happen.
6. How is the system capacity worked out?
Our team of trained engineers will assess your current building layout and will try to
maximise the system size. Note will need to be taken with regards to the Feed in
Tariff thresholds and, in certain situations, a slightly reduced system size may be
installed to keep the system in a lower banding (with higher Feed in Tariff) and
therefore make the system economically viable.
7. What are the obligations for the host site?
This scheme is about Mercantile Investors providing a service to the host site. As such,
the obligations on the host site are minimal. In fact, we only ask three main things:-
a) That you continue to use, and buy from us at the hugely reduced rates, the
energy that we produce and you require
b) That you allow us to attend site to clean and maintain the system
c) You keep an eye on the system and let us know if there is anything that looks out
8. Who will insure the equipment?
Mercantile Investors partners will insure the equipment. You may wish to notify your existing
insurers of the solar PV system’s presence, but it should not impact on any of your
9. Who will be responsible for any damage caused during installation and
Mercantile Investors funding partner will ensure that the solar PV system is installed correctly, and any “making good” works are completed to the site owner’s satisfaction. During operation
there should be nothing that would cause any damage, but if there were damage,
then we would certainly put that right.
10. What happens if the property is sold and the new owner does not wish to “inherit” the deal?
The agreement between the current site owner and Mercantile Investors is there to protect
both the site owner as well as the significant investment being undertaken by Mercantile Investors in the system. If the new site owner does not wish for the agreement to be
continued after the property has been sold then they are entitled to purchase the
equipment from Mercantile Investors
11. Are there any performance guarantees?
Solar PV systems are extremely reliable. We undertake to ensure that the solar PV
system is working for a maximum amount of time, with the highest outputs. All equipment
that Mercantile Investors install comes with long warranties – up to 25 years – on output.
12. Do mortgage providers need to know about this?
We will be registering the lease with the Land Registry and this will need to be
cleared with your mortgage provider prior to any installation works being undertaken.
Separately we would always recommend letting your mortgage provider know.
13. Who is responsible for planning related issues?
Mercantile Investors will undertake all planning related activities. We only ask that the site
owner does not encourage any planning objections to be raised, or raise any
14. Can I have this at home?
Solar PV is ideal for nearly every building – including homes. Unfortunately the
funded scheme does not make economic sense for Mercantile Investors to deliver.
We are therefore unable to install solar PV systems at home under this scheme but
would be pleased to provide you with a quote, through our delivery partners, should
you wish to purchase a system.
15. What happens if the Company that owns the equipment ceases to exist or goes into liquidation?
Host sites are well protected in the very unlikely event that Mercantile Investors , or its
specialist subsidiary that owns the solar PV system, should cease to
exist or go into liquidation.
The solar PV system is able to access a consistent revenue stream from the
Government incentives, and it is only by operating the solar PV system that this can
be achieved. If the subsidiary that owns the solar PV system ceases to exist then the
finance partners or the administrators will step in to ensure that the solar PV system
is brought back into operation – as ultimately they are seeking to recover their
16. Will the system operate during times where there is a power cut?
The simple answer is “no”. The solar PV system is tied to the National Grid and will
shut itself down when there is a power cut. This is a Government set safety
requirement, as it allows the Network Operators to cut power completely to any
affected area where work is being undertaken on the grid. Works may then proceed
without the added complication of many solar PV systems still pushing power to the
17. Are there additional measures that can be implemented to save further energy?
Absolutely! We recommend that sites always consider the following:
a) Biomass heating – generate carbon neutral heat from nature’s energy store –
b) Voltage optimisation – reduce electricity consumption by up to 10%
c) LED lighting – low power, bright lighting that lasts 10 times longer than old
18. All sounds good. So what are my actual benefits?
The key benefits for host sites can be summarised as follows, and are dependent
upon fuel displaced and your current energy use:
Savings on electricity bills
Savings on CO2 output
Avoidance of carbon costs
Enhanced CSR programme
Our team will provide you with a full and comprehensive evaluation of the benefits
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|Energy Conservation Centre
|Tel: 0845 055 8203