Ripple Energy wind farm?

Swan_Valley

Coastalwatch said:

Just logged on to my Ripple dashboard and find that they've now updated my return for the coming twelve months, £396 equating to a 14.6% return on our investment. Now, that was a pleasant surprise.

Thanks for that tip. Just checked our Ripple dashboard and also have the updated return figure for the 1st year.

It is now more than our annual electric bill + gas standing charge (we are trying to not use any gas, following your example).

As our average rate on Go Faster, for all imported electric, is less than 6p/kWh, compared to the return of over 9p/kWh for estimated generation from WT1.

As you say, not a bad return & a very pleasant surprise.

Verdigris

<tries to suppress turbine-share envy>

Brilliant news!

<unclenches teeth>

JKenH

Coastalwatch said:

Just logged on to my Ripple dashboard and find that they've now updated my return for the coming twelve months, £396 equating to a 14.6% return on our investment. Now, that was a pleasant surprise.

I was doubtful about the investment case when Ripple was launched but events have overtaken us and those who took the risk have done ok. Well done, that’s what investing is about. 

Just wondering if a breakdown is given of the split between return of capital and profit? 

The high electricity prices will also make a difference to the return on both of our 2018 solar panel purchases. Given the new rates I will face from March 2022 when my Octopus price will rise by 50/120%, I am hoping to get the payback time down from over 8 years to perhaps around 7.

I was sceptical, as were others, that tariffs would continue to rise by 6% per annum as some of the solar salesman predicted but again I have been proved wrong. Predicting the future is a thankless task. 

Reed_Richards

Coastalwatch said:

Just logged on to my Ripple dashboard and find that they've now updated my return for the coming twelve months, £396 equating to a 14.6% return on our investment. Now, that was a pleasant surprise.

That's really good, congratulations, but isn't it actually a return of your investment?  After 7 years of 14.6% per year you would have got back the money you originally spent so would thereafter get a return on your investment.

QrizB

Reed_Richards said:

Coastalwatch said:

Just logged on to my Ripple dashboard and find that they've now updated my return for the coming twelve months, £396 equating to a 14.6% return on our investment. Now, that was a pleasant surprise.

That's really good, congratulations, but isn't it actually a return of your investment?  After 7 years of 14.6% per year you would have got back the money you originally spent so would thereafter get a return on your investment.

You can slice it in several ways but Ripple's proposal was that you'd get back 5% of your initial investment each year for 20 years, with the excess over that being "profit".

Using that model, the first year's payment is 5% of capital plus 9.6% profit.

QrizB

Here's a question for Ripple members that I can't find an answer for:

If you send someone a Ripple gift card, does the card automagically include your referral link?

Coastalwatch

QrizB said:

Here's a question for Ripple members that I can't find an answer for:

If you send someone a Ripple gift card, does the card automagically include your referral link?

Sorry, not aware either way but they are very responsive on the chat link so worth asking the question.

Reed_Richards

QrizB said:

Reed_Richards said:

Coastalwatch said:

Just logged on to my Ripple dashboard and find that they've now updated my return for the coming twelve months, £396 equating to a 14.6% return on our investment. Now, that was a pleasant surprise.

That's really good, congratulations, but isn't it actually a return of your investment?  After 7 years of 14.6% per year you would have got back the money you originally spent so would thereafter get a return on your investment.

You can slice it in several ways but Ripple's proposal was that you'd get back 5% of your initial investment each year for 20 years, with the excess over that being "profit".

Using that model, the first year's payment is 5% of capital plus 9.6% profit.

This sort of disingenuity puts me off.  If you were looking to get solar panels or your own personal wind turbine you would try to  estimate how long it would take you to recoup your initial investment - and then how much longer you expect your system to live and bring-in a profit.  You wouldn't (or I wouldn't) invent some imaginary split between ROI and profit.    

Martyn1981

Reed_Richards said:

QrizB said:

Reed_Richards said:

Coastalwatch said:

Just logged on to my Ripple dashboard and find that they've now updated my return for the coming twelve months, £396 equating to a 14.6% return on our investment. Now, that was a pleasant surprise.

That's really good, congratulations, but isn't it actually a return of your investment?  After 7 years of 14.6% per year you would have got back the money you originally spent so would thereafter get a return on your investment.

You can slice it in several ways but Ripple's proposal was that you'd get back 5% of your initial investment each year for 20 years, with the excess over that being "profit".

Using that model, the first year's payment is 5% of capital plus 9.6% profit.

This sort of disingenuity puts me off.  If you were looking to get solar panels or your own personal wind turbine you would try to  estimate how long it would take you to recoup your initial investment - and then how much longer you expect your system to live and bring-in a profit.  You wouldn't (or I wouldn't) invent some imaginary split between ROI and profit.    

Yes, it's more of a business model where the CAPEX would be accounted for (in this case) via 20yrs of depreciation (or returned as 5% pa effectively reducing the profit part). That way it can be removed from the profit and loss over a set period, with anything remaining being profit each year. If you were to work on a basis that no return/profit was made till the initial expenditure was covered, then you'd effectively report zero profits for a decade or so (before then reporting higher profits for a decade), and the tax man would want a chat.

The same applies to us with our domestic PV, most would say we are out of pocket until returns exceed the CAPEX and any OPEX, and then it's all gravy. But to 'account' for it correctly, we should take annual income and remove any OPEX (hopefully zero, but we shouldn't forget cost of capital (lost interest)) plus the depreciation, let's say 1/20th of the cost each year. The accounting method would show a small profit from year one, whereas waiting for all expenditure to be recouped would show zero 'profit' for about a decade, then larger 'profits' afterwards.

In reality it's all the same, but when accounting for others, and the tax man, it needs to be done in a particular way.

JKenH

Agreed, but in addition with the Ripple wind farm you have tax to bear in mind. This year the profit is 9.6% so tax is payable on that. On a domestic solar installation there is no tax on the FiT element and what you self consume doesn’t count as income.