The Charge My Street element of the capital costs for the chargepoints to be installed in the SOSCI project will be met by grant funding of £335,000 from Innovate UK to Charge My Street. This grant will be paid quarterly in arrears. Funds raised from a share offer are needed to pay for the capital costs of charge points before the grant money is received. Once all the SOSCI project grants have been received, funds from the share offer will be used by Charge My Street to install further charge points. The aim will be to work with local authorities, with Charge My Street using funds raised from the share offer to match grants available to local authorities, such as OLEV On Street Charging
The target for the share offer is £130,000. This would bring the total share capital raised by Charge My Street to just under the £150,000 limit for the Seed Enterprise Investment Scheme (SEIS), which gives tax-paying investors tax relief of up to 50%. The shares issued following Charge My Street’s first share offer in 2018 were eligible for SEIS.
The £130,000 to be raised in the share offer will provide cashflow support for the 100% grant for the installation of 100 chargepoints in the SOSCI project. At the end of the SOSCI project, the £130K will be split between working capital of £30K, to support the running costs of the new chargepoints, and part funding the installation of new chargepoints. It is hoped that Charge My Street can work with Local Authority partners to obtain OLEV funds and install 40 chargepoints as part of the On-Street Charging programme. £100K would support 40 chargepoints at £10K / chargepoint with Charge My Street contributing 25% funding. This is not without risks – Local Authorities will procure on the open market or through closed frameworks which means that bids may go to other chargepoint providers. If Local Authority support cannot be obtained, the £100,000 of capital from the share offer will be invested in ten to 11 more chargepoints, or more if match grant funding can be obtained from Innovate UK or OLEV.