Total investment costs to build the project were £6 million, including construction, acquisition and fund raising costs.
The acquisition of the Orchard Farm Solar Array has been made possible through the use of two sources of capital: a £3.3 million loan facility from Triodos Bank, and the Orchard Community Energy share offer, which raised £522,000 in equity investment in November 2015.
The outstanding purchase price balance of £2.22 million has been lent as a sub-loan by the project’s developer, OPDE. Repayment of this sub-loan shall come from this Bond offer and further fundraising programmes that shall be approved by the Orchard Community Energy board.
The principal operational costs of the Orchard Farm Solar Array are:
- Payments to OPDE for ensuring the proper running of the solar farm under the Operations and Maintenance contract;
- Payments due to landlords under the site agreements; and
- Payments to Mongoose for managing Orchard Community Energy’s relationship with OPDE under the Mongoose management services agreement.
- Business rates & insurance
- Funds are also set aside each year for a sinking fund to pay for equipment replacement later in the project life.
Other costs include: electricity imports, metering, security and bank monitoring fees.