Ripple Energy wind farm?

numskull_2

Netexporter said:

 Assuming that the initial investment is "spent", this gives an actual return of £5338 over the 25 years.

I fairly certain that you get your capital back over the term of the project.

Reed_Richards said:

Netexporter said:

 Assuming that the initial investment is "spent", this gives an actual return of £5338 over the 25 years.

I fairly certain that you get your capital back over the term of the project.

But that's a tax thing, some of what you get paid is deemed to be return of capital so you don't have to pay tax on it.  The question is whether the "saving" figure includes or excludes this return of capital.

The way I see it is that I assume that if the site has a useful life of 25 years, then after that time your initial investment has a commercial value of zero. So the amount returned over the years must include the original amount (the principal). So that has to be deducted when calculating the return.
Even if you got your original investment back as well, it would still only give a 4.18% annualised return over the 25 years, all other things being equal. Of course, if prices went up or down, the final amount would be different.

Petriix

NedS said:

In context, UK Wind (UKW), a £6bn UK Wind Farm trust, is currently trading on a 7.25% inflation-linked dividend (tax free, if held in ISA or pension), and seeks to maintain capital value over the long term by reinvesting excess income that is not paid out in dividends.

Note: I have an interest with around £60k invested, currently yielding £4,500 per year tax free income, which is more than paying my energy bills.

Fact sheet:

https://doc.morningstar.com/ed898984670042a3dc7f10ccbdec80e7.msdoc/?clientid=fiduk&key=06f7d682c5869576

Thanks for this. I've just opened my first ever stocks and shares ISA on Trading212 so I could buy some shares in this. I even got a random free share in some other company worth £44 by using a referral link.

Still unsure how much to invest in the latest Ripple project. Feels like a poor investment in terms of money in the current energy market but it's a great insurance policy against any future catastrophes. 

Netexporter

Yes, thanks, UKW is now on my list for my SIPPS (when I finally get round to rounding up various bits and pieces of work pension schemes).

Similarly, I'm pondering how much to put into the new project. I notice that the lifetime has been quoted at 30 years, rather than the 25 for Kirk Hill, which is what put me off Derrill Water, as I'd have to have got a telegram from the monarch to see it through to the end.

I took 120%, of my then usage, for Kirk Hill, but I now have an EV and, soon, a heat pump to feed, which could justify a further 6000kWh investment. However, that is based on me doing the national average mileage of 8000 and on a conservative SCOP for the heat pump, so I think I'll go for something more modest, as I probably won't feel the whole benefit.

Martyn1981

May not affect anyone else, but just to say I got the announcement e-mail from Ripple on the 18th, but no offer e-mail (as promised, as I have a reservation) on the 19th. But on checking, it's in my spam folder, which is really odd.

No probs, but thought it worth mentioning as you get a week to respond before the offer goes wider.

Reed_Richards

How does this current offer compare to the previous wind farm offers?

Petriix

Reed_Richards said:

How does this current offer compare to the previous wind farm offers?

It's pretty similar but, against a backdrop of higher building costs and falling energy prices, it's not so appealing. The Kirk Hill project had a significant cost overrun and the first 6 months of generation have attracted a considerably lower price than originally expected meaning a much lower return.

The reality of the projects will play out over the long term. If energy prices stay low then it will be a poor financial investment. However, I see it more as an insurance policy so I'm happy to take a bit of a hit because it means my overall bill will be lower. If, on the other hand, prices go high again then it should be a decent mitigation.

I put £2k in to Kirk Hill and only £250 to Whitelaw Brae. I'm also buying a few shares in renewable energy funds for a bit of diversity. 

Netexporter

Kirk Hill Turbine 2 is now energised. Other to follow soon.

Big Kirk Hill update April 2024 (youtube.com)

Netexporter

All 8 turbines at Kirk Hill now commissioned and sending energy to the grid.

Coastalwatch

Netexporter said:

All 8 turbines at Kirk Hill now commissioned and sending energy to the grid.

Cheers @Netexporter. Did you get your name up in lights on one of the towers?

Netexporter

Coastalwatch said:

Netexporter said:

All 8 turbines at Kirk Hill now commissioned and sending energy to the grid.

Cheers @Netexporter. Did you get your name up in lights on one of the towers?

I'll have to watch the video again. I think I got some dust in my eyes, the first time.