Ripple Energy wind farm?

thevilla

ProDave said:

Thanks. So about 2 years from signing up to starting to receive income.  That 2 years needs to be added to any calculated "payback period"

I think you mean 18 months, for Kirk Hill at least.  If you are interested in project 3 then the anticipated project timeline will form part of the share offer document. 

I find it really strange how many people take aim at Ripple with ill informed rumour or pay their 25 quid and expect the rules to change for them (comments on the Ripple site regarding leccy price).

will-he-payitoff

ProDave said:

Thanks. So about 2 years from signing up to starting to receive income.  That 2 years needs to be added to any calculated "payback period"

The wind turbine is going to operate for  25 years so you are saving for 25 years from start of generation not when you paid your money.

NedS

will-he-payitoff said:

ProDave said:

Thanks. So about 2 years from signing up to starting to receive income.  That 2 years needs to be added to any calculated "payback period"

The wind turbine is going to operate for  25 years so you are saving for 25 years from start of generation not when you paid your money.

Yes, but I think the point being made is that when accounting for that cash investment, there may be a 1-2 year period where that cash is tied up, producing zero income, could have been yielding 5% in a savings account whilst inflation is at 10%

Martyn1981

NedS said:

will-he-payitoff said:

ProDave said:

Thanks. So about 2 years from signing up to starting to receive income.  That 2 years needs to be added to any calculated "payback period"

The wind turbine is going to operate for  25 years so you are saving for 25 years from start of generation not when you paid your money.

Yes, but I think the point being made is that when accounting for that cash investment, there may be a 1-2 year period where that cash is tied up, producing zero income, could have been yielding 5% in a savings account whilst inflation is at 10%

That's true, but once a price is agreed, and you start paying, then you've also locked in a cost, that could rise with inflation.

70sbudgie

NedS said:

will-he-payitoff said:

ProDave said:

Thanks. So about 2 years from signing up to starting to receive income.  That 2 years needs to be added to any calculated "payback period"

The wind turbine is going to operate for  25 years so you are saving for 25 years from start of generation not when you paid your money.

Yes, but I think the point being made is that when accounting for that cash investment, there may be a 1-2 year period where that cash is tied up, producing zero income, could have been yielding 5% in a savings account whilst inflation is at 10%

The 2 year delay between investing and any return is what made me limit my investment (as well as wanting to suport more projects, so not maxing out on my first).

However, given the increases in the cost of electricity since I made my investment, I would do it differently. I would invest more and hope that I would be able to support additional projects later, on the assumption that my electricity usage would increase (with the installation of things like heat pumps).

It would be interesting to hear from someone who invested in Craig Fatha as to what sort of return their (almost) first year is looking like.

thevilla

I dont have anything in Craig Fatha but I presume you've already seen the negotiated return will increase from about 9p/kwh to 27p from April.  An average of £800pa if I remember correctly.

Edit: Our Kirk Hill investment is down £30.  The price of two Ripple t-shirts

Exiled_Tyke

NedS said:

will-he-payitoff said:

ProDave said:

Thanks. So about 2 years from signing up to starting to receive income.  That 2 years needs to be added to any calculated "payback period"

The wind turbine is going to operate for  25 years so you are saving for 25 years from start of generation not when you paid your money.

Yes, but I think the point being made is that when accounting for that cash investment, there may be a 1-2 year period where that cash is tied up, producing zero income, could have been yielding 5% in a savings account whilst inflation is at 10%

Which is why payback is the wrong calculation to appraise this or any other investment.  Do also consider that whatever happens to the general rate of inflation will pretty much be mirrored by the future returns from this. 

However (as I and others have said before) the reasons for putting money into this vary but tend to include: 

1. it's the right thing to do 
2. It's a hedge against future electricity prices. So less about making money and more about locking in some protection regardless of what happens to prices. 
3. It might not be a bad investment in the long run.  

70sbudgie

thevilla said:

I dont have anything in Craig Fatha but I presume you've already seen the negotiated return will increase from about 9p/kwh to 27p from April.  An average of £800pa if I remember correctly.

Edit: Our Kirk Hill investment is down £30.  The price of two Ripple t-shirts

Didn't the Kirk Hill documentation use 4.5p/kWhr? I'm not sure 5% interest rate from a bank can really compare to that. Even if the "missing" two years are factored in. 

thevilla

4.3p but close enough.  I'm guessing rates will be nowhere near that low by the end of the year so Kirk Hill yields are likely to be well above that published.

I am slightly conflicted by the news that 27p (29p after costs?) has been struck which therefore locks in high prices for the next year at least.

Exiled_Tyke

thevilla said:

4.3p but close enough.  I'm guessing rates will be nowhere near that low by the end of the year so Kirk Hill yields are likely to be well above that published.

I am slightly conflicted by the news that 27p (29p after costs?) has been struck which therefore locks in high prices for the next year at least.

Actually 6.4p is the estimate for year one and then back to 4.3p.   4.3p was the estimate before the current energy crisis so this must be based on the assumption that prices will return to where they were before the war.  6.4p has also been an estimate from sometime ago which they've chosen not to revise.   It does seem that they quote conservative figures presumably to avoid disappointment and disgruntled investors.  So I would suggest 4.3p is definitely bottom end and I wouldn't be surprised if we get figures higher then 6.4p while electricity prices as so high.