NatWest Backs OnPath Energy's Common Farm solar and Battery Scheme in the UK

OnPath Energy has secured project financing from NatWest for the Common Farm Solar Park near Dinnington in South Yorkshire, achieving financial close on what is the developer's first project to combine solar generation and battery storage on a single site.

Financial Close Achieved

The financing package comprises a term loan and other ancillary facilities that will support the asset through both its construction phase and its operational life. Burges Salmon acted as legal adviser to OnPath Energy on the transaction, while AECOM provided technical advice.

Kristofer Gibson, Director, Infrastructure & Project Finance at NatWest, said: "We are pleased to support OnPath Energy on this bilateral financing of Common Farm Solar Park, OnPath's first UK solar and BESS co-location project. The project reflects NatWest's ongoing commitment to financing the infrastructure required for UK's energy transition, while further strengthening our longstanding relationship with OnPath Energy."

Scale and timeline of the Dinnington development

Construction is under way on the co-located scheme, which pairs a 49 MW solar array with a 50 MW two-hour battery energy storage system (BESS). The site sits close to the Todwick Road Industrial Estate in Dinnington, east of Sheffield. Once operational, it will produce enough electricity to meet the average annual needs of up to 18,800 family homes. Completion of the works is scheduled for mid-2027.

Commercial arrangements securing the project's revenues

The solar element of the project is underpinned by a subsidy-free, long-term route to market contract with a global technology company. The battery storage asset is supported through a third-party optimisation agreement.

Why solar and storage are being built together

Oliver Hartley, finance director at OnPath Energy, explained the thinking behind combining the two technologies on one site. "While there are currently few co-located sites across the UK, especially at this scale, it makes technical and operational sense to place solar and battery technologies in the same location and allows for efficient use to be made of the available grid connections," he said.

He added that reaching financial close on the company's first co-located solar and battery site "demonstrates the confidence that all parties have in the project's commercial potential, the effectiveness of the different technologies we're utilising and the strength of our relationships with our lenders, advisors and suppliers." Hartley noted that work on the Common Farm Solar and BESS Park is progressing well, and that the project has been delivered in part thanks to OnPath's revolving credit facility (RCF), enabling the company to execute its project plans with maximum efficiency.

Completing the development, he said, will "further enhance OnPath Energy's contribution towards reducing the UK's dependence on imported fossil fuels and strengthening its energy security while also delivering a wide range of direct environmental, economic and community benefits to the local area."

Funding for the local community

Consultation with local people is ongoing to determine how the project's annual community benefits package, worth around 66,443 each year, should be deployed. Over the lifetime of the project, the package could total approximately 2,657,720optimization, with the funds intended to support local community and environmental priorities.

The team delivering the build

AECOM is serving as lead consultant on the project. Grupotec, a specialist engineering contractor, is responsible for the design, engineering, procurement and construction work, and will also carry out operational maintenance and management once electricity generation begins at the site.