Solar Energy Renewables

Background to the solar business

The UK successfully hit its 2020 target for carbon emissions and continues to work towards a net zero target by 2050. This is expected to strengthen support for clean energy generation to ensure we hit this target.

The Renewables Obligation places responsibility on UK electricity suppliers to source an increasing proportion of the electricity they supply from renewable sources. It is the main support mechanism provided by the UK Government for commercial scale renewable electricity projects in the UK. Smaller scale renewable energy projects are supported through the Feed-in Tariff scheme and Renewables Obligation Certificates.

Feed-in Tariff scheme (FIT)

FIT qualifying schemes are supported through the payment of tariffs, set at a fixed amount, for every kilowatt hour of energy generated through renewables.

Renewables Obligation Certificates (ROCs)

ROCs can be traded and are ultimately used by wholesale electricity suppliers to demonstrate they have met their obligations.

Participating in solar energy

Elm Trading’s solar division acquires and develops solar energy installations. Solar and other forms of renewable energy generating assets provide a stable income return, with the benefit of long term Government backed subsidies, which are linked to inflation.

The portfolio currently contains almost 50 solar farms across the UK. Together the sites generate over 210,000MWh of clean energy, sufficient to power over 70,000 UK homes each year. This offsets roughly 45,000 tonnes of carbon each year, helping the UK work towards our net zero emissions target.

Almost all the assets are accredited for FIT or ROC subsidies to provide a secure income stream linked to inflation.

Why solar energy is an attractive trading opportunity

  • The installations themselves and the land represent tangible assets with a related value.
  • Government renewable energy subsidies provide a secure inflation-linked income.
  • Strong established secondary market for mature and established energy generating assets, which helps provide liquidity within the overall portfolio.