Ripple Energy wind farm?

Exiled_Tyke

But in reality, even though it's the norm for the industry, no self-respecting finance/investment expert should be performing any of these calculations.  The only sound way to appraise these investments is by calculating its NPV or IRR.

uncleb0b

I am looking to invest in the next turbine, For those of you who invested in the first, is there any tax write-offs/allowances (eg Enterprise Investment Scheme) etc that come with it?

Also are any of you looking to invest in the next one as well as the first? ( Just thinking if its worth spreading over multiple co-ops vs all in one!) lastly from messages from ripple, the returns can only be used on the elec portion of my bill (ie not gas if i invest in more then my annual usage and build up a credit!), rather then cash into my bank. Does that still attract the income as taxable as mentioned in a previous posts?

Coastalwatch

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.    

In their original offer Ripple did state that 5% of capital would be returned each year, so no disingenuity on their part. An oversight on mine certainly.

It is not uncommon for debentures/company loans to return part of the capital annually alongside a projected interest figure. In Ripples case it will vary year to year as demonstrated above. At the time their original offer was published energy prices were low, due to the lack of demand upon the grid because of the accompanying lockdown and it may be they will return to a similar figure at some point in the future.

However, with the previous CfD auction figures of 4.5p/kWh due to come online I believe, from '23 to '25 along with that of Hinckley Point at circa 10.5p/kWh(for 35years) then I'll happily settle for Ripple's offer of 2.5p/kWh for the next twenty five or so.

As previously stated Ripples offer won't suit everyone, after all which offer does? But I would like to thank all those who have posted their views on here and take on board all the sound advice offered when considering further investments of an ethical and sustainable nature.

Coastalwatch

Announcement below from Ripple at noon today. A great take up by all accounts so if interested make sure to keep an eye on their webpages.

Your wait to convert your wind farm reservation is almost over!

Verdigris

How many shares, in total, are there? How near the total is 3700?

JKenH

Independent energy group acquires Scottish onshore windfarm for £3.29m

I was wondering how the economics of the Ripple Wind project compared to this. I have struggled to find all the information I wanted but believe the Ripple project at Graig Fatha cost £4.3m. The Graig Fatha is bigger but the Kempstone Hill project included an “attractive” inflation linked FiT for around the same consideration.

Parkmead, the independent energy group, has acquired the entire issued share capital of Kempstone Hill Wind Energy Limited, a company owning a 1.5MW onshore wind farm in Scotland.

The total consideration comprises £3.29m in cash. In addition, Parkmead will assume a project loan of approximately £990k.

The wind farm boasts an “attractive” inflation-linked Feed-in Tariff for the life of the project through 2036, and powers 1,000 homes.

The electricity is sold through a power purchase agreement which provides exposure to rising wholesale electricity prices.

https://bdaily.co.uk/articles/2022/02/01/independent-energy-group-acquires-scottish-onshore-windfarm-for-329m

Edit: if the wind turbine was built in 2016 (assuming 20year FiT contract) the FiT rate at the time (inflation adjusted) would have potentially been 4.4p - 6.6p plus PPA (as an alternative to export tariff of 5.57p). I stand to be corrected on this.

Coastalwatch

Afraid I'm not privy to the information you seek but post below a paragraph contained in their email in case it is of use. Presumably the questions you pose are likely to exist in the offer document available for anyone seeking to take part.

Interesting to learn of new suppliers joining. I wonder who they might be!

Soon we'll open the share offer for our next wind farm and you'll be able to take up your reservation.  We'll publish a formal share offer document which sets out all the details you need. We'll also announce the new suppliers joining us as partners. 

Swan_Valley

Progress being made with the cabling to WT1:

QrizB

Verdigris said:

How many shares, in total, are there? How near the total is 3700?

I don't think we know yet. 3700 customers at 900 watts each is 3.33MW and a respectable size for an onshore WT.

Verdigris

I thought the next one was an array of turbines, although my memory is about as reliable as a Morris Marina, these days.