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Thread: Turbine site rental value

  1. #1

    Turbine site rental value

    Simple question.

    How much should the rent be for a Endurance E-120 turbine? I believe it is rated at 55kw but does a bit more on a good day.

    I have a company who want to put up one of these on a rental only basis, no financial input from me at all, they do all the planning and roads etc. All I have to do is sign up.

    They are offering a base rent plus a production based bonus, My advisor thinks the rent is a bit low, but it is only a 55kw machine, not a 800kw.

    Any ideas very welcome, PM if you prefer.

    Thanks

    FB

  2. #2
    Senior Member sprocket's Avatar
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    Re: Turbine site rental value

    I would think on a small turbine like that you would only be offered 1-2K per year. Are you getting the electricity produced? That would make all the difference.

  3. #3
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    Re: Turbine site rental value

    on a 225kw you,re talking about 10% of turnover or 12 to 14k. which ever one is larger. n.ireland

  4. #4

    Re: Turbine site rental value

    Quote Originally Posted by sprocket View Post
    I would think on a small turbine like that you would only be offered 1-2K per year. Are you getting the electricity produced? That would make all the difference.
    Have been offered more than that for rent, we have no grid connection so can't use any of the electricity.

  5. #5
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    Re: Turbine site rental value

    Typical rents seem to be around 1 month's output per year.

  6. #6
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    Re: Turbine site rental value

    So for 3 grand a year is it worth the hassle - probably not.
    And how many of these companies are going to go bust just before they are due to take the turbines down - leaving the landowner liable to comply with that Planning Condition. We were approached by what I can only describe as a Double Glazing type Salesman offering us an Endurance rent-a-site. If you're going to get a (smallish) turbine get yourself a Gaia or something and keep the income generated, it'll be much more than the rental from a 50kW.

  7. #7
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    Re: Turbine site rental value

    The amount anyone is prepared to pay has to be related to the potential of the turbine to produce cash...ie the wind resource.

    I think that on a goodish site (6.5m/sec) you might be able to get around 10% of gross revenue or about 5k. I think Earthmill based in Wetherby are looking at these sorts of numbers.

  8. #8
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    Re: Turbine site rental value

    As I said, get yourself a Gaia or something as the income will be a lot more than rent from a 50kW turbine.

  9. #9
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    Re: Turbine site rental value

    your own machine is the way forward, there are a lot of people ducking and diving and slicing the lions share
    plough your own furrow - its all part of growing up

  10. #10
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    Re: Turbine site rental value

    And a 300,000 mortgage???

  11. #11
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    Re: Turbine site rental value

    Quote Originally Posted by RGT View Post
    And a 300,000 mortgage???
    From what I can gather finance is available against the turbine only so no land etc to put up as equity. No real risk as I understand it the worst that can happen is that someone takes away your turbine.

  12. #12
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    Re: Turbine site rental value

    the problem is - you can watch the blades going round and round - and think every twentieth turn is mine - or you can look and think some other fecka sitting on his lardy asss is taking the other nineteen whirls so how would you think?

  13. #13
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    Re: Turbine site rental value

    You've missed the point - 60K for your own Gaia will earn much more than the rental from a 50kW Endurance - so only a 60K loan.

  14. #14
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    Re: Turbine site rental value

    But thats only a 20kw turbine, if you got a good site, get the biggest if possible , 50k income/yr for a 50kw model upwards for larger ones, is'nt it ?if you own it.
    I know nice to have income without outlay, but the big turbines, should earn mega money.

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