Setting up a photovoltaic park is a project that requires good preparation. To ensure this investment is truly profitable, several things need to be considered. It’s not just about installing panels, but about carefully calculating each step to ensure the money invested pays off. This article gives you the seven important points to examine to make your photovoltaic park project a financial success.

Key Points

• The initial cost is important, but you also need to look at long-term expenses to properly assess the profitability of a photovoltaic park.
• Financial aid and subsidies can reduce the initial price and improve the return on investment of your photovoltaic park.
• Understanding electricity buyback rates is essential to forecast the income generated by your installation.
• Self-consumption allows you to reduce your electricity bills, which is a major advantage for profitability.
• Careful planning and expert advice are necessary to optimise every aspect of the project and guarantee its viability.

1. Cost

The cost of a photovoltaic park is a determining factor for its profitability. It is therefore essential to understand the different elements that make it up. In general, it is preferable to think in terms of the peak power of the panels, as revenues are directly linked to this power.

Investment costs

The amount of the initial investment (CAPEX) includes the equipment, its installation and connection to the grid. Other costs may be added, depending on the complexity of the project, the power of the installation, additional work, and the method of financing.

• Equipment (panels, inverters, cabling, etc.)
• Installation (labour, assembly, etc.)
• Connection to the grid

It is important to note that costs can vary considerably from one region to another. For example, costs are sometimes observed to be up to 30% higher in the north of France.

Grid connection costs

Connecting to the grid is a crucial step, but its cost can impact the viability of the project. Enedis publishes a billing note detailing the flat-rate costs and costs based on estimates. To simplify, Enedis provides an online simulation tool to estimate the complexity and cost of the connection. You can test your connection via your customer area.

Cost of the loan

If you finance your project with a loan, the cost of the loan must be taken into account. Interest rates may vary, and you must not forget insurance and any deferred payments. The interest rate of a traditional bank will be between 1.5 and 3%.

Insurances

It is strongly advised to take out an All Risks Construction insurance, which covers damage during construction. Its cost is approximately 0.5 to 1% of the amount of the work. For installations on buildings, a structural damage insurance, mirroring the ten-year guarantee, is also recommended, representing 1 to 3% of the amount of the work. It is important to understand the investment costs to assess the profitability of your project.

Technological options

The choice of technologies can influence the overall cost. For example:

• Double-glazed, high-efficiency modules
• Micro-inverters or power optimisers
• Datalogger for supervision
• Control box and storage battery
• Real-time production display screen

Operating costs

Beyond the initial investment, you must anticipate operating costs, which include:

• Maintenance (cleaning panels, replacing inverters, etc.)
• Insurances
• Taxes
• Management fees

It is important to note that evacuating your production can cause problems if the amount is too high.

2. Subsidies

Subsidies are an important element to consider for the profitability of your photovoltaic park. They can significantly reduce the initial cost of the project, which accelerates the return on investment. There are several types of financial aid available, both nationally and regionally. It is important to be well informed about the eligibility criteria and the steps to follow to benefit from them.

Financial aid can take different forms:

• Direct subsidies: A sum of money paid to reduce the cost of acquiring equipment.
• Tax credits: A reduction in income tax or corporation tax.
• Subsidised loans: Loans with more advantageous interest rates than those on the market.
• Tax exemptions: A temporary or permanent elimination of certain taxes.

It is important to note that subsidies may vary depending on the region, the size of the installation and the type of project. It is therefore essential to stay informed of the regulations in force and to take the necessary steps to benefit from them.

To help you see more clearly, here are some examples of existing subsidies:

• The aid from ADEME (French Environment and Energy Management Agency): They support innovative projects and large-scale installations.
• The aid from local authorities: Regions, departments and municipalities offer specific aid to encourage the development of renewable energies.
• The calls for tenders from the CRE (French Energy Regulatory Commission): They make it possible to select the most competitive projects and guarantee them an advantageous buyback rate.

It is important to note that financial aid can be combined, but it is necessary to check the conditions of each scheme. Do not hesitate to contact an expert to assist you in your efforts and optimise your chances of obtaining subsidies. You can also consult the calls for tenders in progress.

3. Buyback rate

The buyback rate is a determining factor in evaluating the profitability of your photovoltaic park. This is the price at which an energy supplier, such as EDF, buys back the electricity that you produce and inject into the grid. This rate, expressed in €/kWh, directly influences your income and therefore the time required to make your investment profitable.

It should be noted that buyback rates are set by public authorities and may vary depending on several criteria, including the power of your installation and the type of sale (total or surplus). It is therefore important to understand these mechanisms to optimise your income.

It is important to note that buyback rates are regularly updated. It is therefore essential to stay informed of the latest developments to make the best decisions.

Here are some points to consider:

• The power of your installation: Rates are often degressive with power. Small installations generally benefit from more advantageous rates.
• The type of sale: You can choose to sell all of your production or only the surplus not consumed. The choice depends on your consumption profile and the rates offered.
• The evolution of rates: Buyback rates are likely to change. It is therefore important to follow official announcements and simulate different scenarios to anticipate the impacts on your profitability.

The different types of sale

There are two main types of photovoltaic electricity sales: total sale and surplus sale. Each has its advantages and disadvantages, and the choice will depend on your personal situation and your objectives.

• Total sale: You sell all of the electricity produced by your photovoltaic installation. This is an interesting option if your personal consumption is low or if you want to maximise your income. The price per kWh in surplus sales is an important element to consider.
• Surplus sale: You consume part of the electricity produced by your installation and you only sell the surplus not consumed. This option is interesting if you have significant consumption and you want to reduce your electricity bill.

How to optimise your income through the buyback rate

To optimise your income through the buyback rate, it is essential to properly size your installation according to your consumption and choose the most suitable type of sale. A preliminary study of your energy needs is therefore essential. In addition, it is important to follow the evolution of rates and simulate different scenarios to anticipate the impacts on your profitability. Do not hesitate to call on an expert to assist you in this process. They will be able to advise you on the best options and help you optimise your installation. It is important to understand the impact of purchase rates on profitability.

Market participants

Several players are involved in the buyback rate market. The main one is EDF, which is required to purchase electricity produced by photovoltaic installations under the purchase obligation. However, other energy suppliers may also offer buyback offers. It is therefore important to compare the different offers to choose the most advantageous one. It is important to understand the database to avoid errors.

4. Self-consumption

Self-consumption represents an increasingly popular strategy for optimising the profitability of a photovoltaic park. It consists of directly consuming the electricity produced by your solar panels, thus reducing your dependence on the traditional electricity grid. This is an approach that can significantly impact your energy costs and your return on investment.

Self-consumption can take several forms, ranging from the immediate use of the electricity produced to its storage for later use. The choice of the most suitable strategy will depend on your energy needs, your consumption profile and the characteristics of your photovoltaic installation.

Self-consumption is an effective way to reduce your electricity bill and improve the profitability of your photovoltaic park. By consuming the electricity you produce, you reduce your dependence on the grid and enjoy cleaner, cheaper energy.

Self-consumption can be individual or collective. Individual self-consumption is the most common, it consists of consuming the electricity produced by your own solar panels. Collective self-consumption, on the other hand, allows several consumers to share the electricity produced by a common photovoltaic installation.

It is important to properly size your photovoltaic installation according to your self-consumption needs. An oversized installation will result in a surplus of production that you will have to resell at a price often less advantageous than the cost of the electricity you would have purchased from the grid. Conversely, an undersized installation will not cover all your needs, forcing you to buy electricity from the grid.

• Optimisation of consumption: Adapt your consumption to periods of maximum solar production. For example, schedule the operation of your most energy-intensive appliances (washing machine, tumble dryer, dishwasher, etc.) during sunny hours.
• Energy storage: Consider installing storage batteries to store the electricity produced during periods of high production and reuse it when production is low or zero (at night, for example).
• Monitoring of production and consumption: Use a system to monitor electricity production and consumption to identify areas for improvement and optimise your self-consumption.

Self-consumption has many advantages, but it also has challenges. It is important to properly assess these aspects before embarking on a self-consumption project. One of the main challenges is to match solar production with energy consumption. Indeed, solar production is variable and depends on weather conditions, while energy consumption can be more or less constant. This is where energy storage can play an important role.

In conclusion, self-consumption is an interesting strategy to improve the profitability of a photovoltaic park. However, it is important to properly assess your needs, properly size your installation and adapt your consumption to maximise the benefits of self-consumption. It is also important to note that self-consumption does not solve all problems. For example, if you encounter a database problem, self-consumption will not be able to help you.

5. Return on investment time

The return on investment time is a bit of a make-or-break factor when we talk about solar panels. Basically, it’s the period required for the savings made thanks to your photovoltaic installation to cover the initial cost of the investment. Several factors come into play, and it is important to consider them to have a precise idea of the profitability of your project.

Calculating the return on investment time is crucial to assess the financial viability of your photovoltaic park project. It allows you to determine from when your installation will start to generate real profits.

It is important to note that the return on investment time can vary considerably depending on various elements, such as the initial cost of the installation, the subsidies obtained, the electricity buyback rate, and your own consumption.

Here are some elements to take into account to assess this return time:

• Initial cost of the installation: The higher the cost, the longer the return time will be. It is therefore important to compare quotes and look for available financial aid.
• Electricity production: The amount of electricity produced by your solar panels depends on the sunshine in your region. Higher production means greater savings and a shorter return time.
• Electricity buyback rate: If you resell part of your electricity production, this can accelerate the return on investment time. Buyback rates vary depending on contracts and regulations in force.
• Self-consumption: The more you consume the electricity produced by your solar panels, the less you need to buy electricity from your supplier, which reduces your bills and accelerates the return time.

In general, it is estimated that a solar installation becomes profitable after 7 to 12 years. However, this is only an estimate, and it is important to do a personalised study to have a more precise idea of your own situation. Do not hesitate to call on an expert to assist you in this process. They will be able to help you assess the return on investment time of your project and optimise its profitability. For example, if you live in a region with strong sunshine, your return on investment will be faster. In addition, optimising HVAC energy performance can also positively influence this time frame. Finally, it is good to note that residential solar investments can become profitable in less than 10 years.

6. Expert

It’s easy to get lost in the technical details and constantly evolving regulations. That’s where an expert comes in. Calling on a qualified professional can make all the difference in the success of your photovoltaic park project.

An expert will provide you with a clear and precise vision, thus avoiding costly errors and optimising the profitability of your installation.

Here are some reasons why it is wise to consult an expert:

• In-depth technical knowledge: From selecting the appropriate components to integrating into existing power systems, an expert has the expertise to ensure optimal installation.
• Assistance with subsidy applications: Experts are familiar with government subsidy programmes and can help you prepare your application file. This is a significant asset to reduce the initial cost of your project.
• Monitoring of installation and commissioning: An expert ensures that everything is executed correctly and that the installation operates optimally from the outset. This avoids future problems and maximises energy production.
• Advice for maintenance and operation: Regular maintenance is crucial to ensure the longevity and efficiency of the installation. Experts help you set up monitoring systems and plan necessary maintenance operations.
• Information on emerging technologies and trends: The photovoltaic sector is constantly evolving. An expert keeps you informed of future developments and possible upgrades, allowing you to stay at the forefront of technology.

Ultimately, the intervention of an expert can save you time, money and avoid many worries. Do not hesitate to request a quote from qualified professionals to assess your needs and obtain personalised advice. The expertise of a professional can greatly influence the HVAC energy performance of your installation.

It is important to choose your installer carefully to ensure a quality installation and rigorous follow-up. A qualified installer will be able to advise you on the best options for your situation and support you throughout the process.

7. Planning

Planning is a crucial step to ensure the profitability of your photovoltaic park. Rigorous planning makes it possible to anticipate challenges, optimise costs and maximise revenues. Good planning is the key to the success of your project.

Feasibility study

Before you start, it is imperative to carry out a thorough feasibility study. This study must take into account several aspects:

• The assessment of the solar potential of the site. It is necessary to analyse the sunshine, potential shading and the optimal orientation of the panels.
• The analysis of technical constraints. It is necessary to assess the capacity of the local electricity grid to accommodate the production of your park.
• The study of regulatory and environmental aspects. It is necessary to ensure the conformity of the project with the regulations in force and minimise its impact on the environment. For projects of more than 250 kWp, an environmental impact study is mandatory.

Choice of partners

The choice of partners is decisive for the success of your project. It is important to select competent and experienced professionals in the field of photovoltaics. Here are some key partners:

• The installer. They must be certified and have good experience in carrying out similar projects.
• The design office. They must be able to carry out the necessary technical studies and advise you on the most suitable technological choices.
• The legal advisor. The setting up of a large-scale project may require a legal advice service for the creation of a project company or the drafting of a lease for the provision of land.

Site monitoring

Site monitoring is essential to ensure that the work is carried out in accordance with best practices and within the time limits. It is recommended to call on a project manager to coordinate the various stakeholders and control the quality of the work. It is also necessary to provide for a mission to coordinate safety and health protection (SHP) as soon as two or more companies intervene simultaneously on the same site.

Careful planning, the choice of competent partners and rigorous site monitoring are the guarantees of a profitable and sustainable photovoltaic park project. Do not hesitate to be accompanied by experts to carry out your project and integrate photovoltaic projects successfully.

To succeed, you must first think about what you want to do. It’s like preparing a recipe: you don’t start without knowing what you’re going to put in it! If you want to know more about how to organise yourself well, visit our website now.

Conclusion

There you go, we’ve covered the important points to make a photovoltaic park project really financially worthwhile. You have to look closely at the aid, see how you can combine it with other things, and above all, plan everything well. That’s how you manage to make the installation pay off quickly. If you have a solar project in mind, don’t hesitate to get support. Experts can help you find the best solution for your situation and make your investment as profitable as possible. It’s time to get started for a greener and more efficient future.

Frequently Asked Questions

What is the cost of a photovoltaic project?

The cost of a photovoltaic park depends on several elements, such as its size, the type of solar panels chosen, and the difficulty of the installation. It is important to ask for quotes from several professionals to have a precise idea of the necessary budget.

Can I get help for my solar installation?

Yes, there are various financial aid and subsidies to encourage the installation of solar panels. This aid can reduce the initial cost of your project and make it more financially attractive. It is advisable to inquire with local and national organisations.

What is the electricity buyback rate?

The buyback rate is the price at which you can sell the electricity that you produce but do not use. This price is set by the state and may vary. It is crucial to know it, as it directly influences the profitability of your installation.

How does self-consumption work?

Self-consumption is using the electricity that you produce directly on site. This reduces your electricity bill, as you buy less energy from the grid. It’s a great way to save money in the long term.

How long does it take for my investment to be profitable?

The return on investment time is the period required for the savings made thanks to your solar installation to cover its initial cost. In general, for a photovoltaic park, this can take between 7 and 12 years, but this varies depending on the projects.

Why is it important to consult an expert?

Calling on an expert is very important. A professional can help you choose the best solution for your project, optimise your installation, and guide you through the administrative procedures. Their know-how guarantees that your project will be well managed and profitable.

Why is planning essential for a photovoltaic project?

Good planning is the key to a successful project. This includes studying your energy consumption, choosing the ideal location for the panels, and managing the administrative procedures. Careful planning avoids problems and ensures the performance of your installation.

What factors influence the profitability of a photovoltaic park?

The profitability of a photovoltaic park is influenced by several factors: the initial cost of the installation, the subsidies available, the electricity buyback rate, your level of self-consumption, and the evolution of energy prices. All these elements must be taken into account to assess the potential for gain.