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Low Carbon Hub

Financial performance

The Low Carbon Hub is aiming to raise £800,000 of investment in the Community Energy Fund in this round.

This investment will help the Hub:

• Grow their portfolio of solar PV projects
• Invest in existing solar PV portfolios by refinancing the short term loan from Oxford City Council.

Over the past three years, the Low Carbon Hub Group has significantly expanded its asset base, with over £8.1 million expended on generating assets.

How your investment works in practice

Low Carbon Hub is opening up the Community Energy Fund for investment until 7 March 2019.

• You can invest from £250 to a maximum of £100,000
• You start earning interest from the day your application for shares is formally accepted by the Board of Low Carbon Hub, this will most likely be in March 2019.
• Interest is calculated at the end of each financial year based on the performance of energy projects funded during that year.
• Interest is paid out to investors after the end of each financial year – this can be several months after year end.
• The full target interest rate of 5% is earned after the fourth anniversary of investment – to reward long-term commitment, investment held in the Community Energy Fund for more than four years will be eligible to receive the full target interest rate. For the first four years of investment the target interest rate is 4%.
• You are eligible to apply to withdraw your equity following the fourth anniversary of your investment.

Solar 2016 portfolio

Summary projections

By taking a stake in the Solar 2016 Portfolio through the paying off of the short term loan from Oxford City Council, the Community Energy Fund is buying into a fully-established and operational portfolio of generating assets, which will provide the Fund with a core of long-term income. The portfolio is already earning interest and is due to make its first interest payment to existing investors and Fund investors next year.

It is Low Carbon Hub's ambition to pay off the Oxford City Council short term loan by 31 March 2019. 

To Mar 2020 Apr 2020 – Mar 2025 Apr 2025 – Mar 2030 Apr 2030 – Mar 2037 LIFETIME TOTAL
Operating Cash Flow
FIT Income 369,868 634,045 717,494 1,075,372 2,796,780
Sales income 464,381 746,866 953,872 1,513,985 3,679,103
Total Operating Income 834,250 1,380,910 1,671,366 2,589,357 6,475,883
Operating Costs -231,799 -367,300 -661,870 -712,422 -1,973,391
Net Operating Cash Flow 602,451 1,013,611 1,009,496 1,876,935 4,502,492
Expenditures Cash Flow
Reserve Funds 85,843 107,304 -193,147 0 0
Interest on short-term debt 167,937 0 0 0 167,937
Portfolio operating surplus 348,671 906,307 1,202,643 1,871,680 4,329,301
Payment to Fund & original investors 255,620 623,075 521,466 325,916 1,726,077
Capital repayments 0 202,366 564,495 1,363,309 2,130,170
Community benefit donations 93,050 80,866 116,682 182,456 473,054
Total expenditures cash flow 602,451 1,013,611 1,009,496 1,871,680 4,497,238
Balance 0 0 0 5,254 5,254
Profit and Loss Account
Total revenue 834,250 1,380,910 1,671,366 2,589,357 6,475,883
Operating Costs -231,799 -367,300 -661,870 -712,422 -1,973,391
EBITDA 602,451 1,013,611 1,009,496 1,876,935 4,502,492
Cost of finance -423,558 -623,075 -521,466 -325,916 -1,894,014
Community benefit donations -93,050 -80,866 -116,682 -182,456 -473,054
Depreciation -426,034 -532,542 -532,542 -639,051 -2,130,170
Total -340,191 -222,872 -161,195 729,512 5,254

Key financial table assumptions

  • 20-year project
  • System degradation 0.45% a year
  • 80% of electricity consumed on site
  • RPI at 3%

Low Carbon Hub liabilities

The longterm liabilities of the IPS currently stand at £2,323,586. In addition, it has short-term liabilities of £677,852, which is a loan from Oxford City Council due for repayment on 29th March 2019, a proportion of the monies raised through the opening of the Community Energy Fund for investment will be used to pay down this loan.

Included in the long term liabilities is a long term loan relating to Sandford Hydro of £1,879, 497 from Charity Bank, held in the wholly owned subsidiary Low Carbon Hub Sandford Hydro Limited. This loan is ring-fenced within Sandford Hydro Limited and therefore exposure is limited only to Sandford Hydro portfolio shareholders.

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