The key risks affecting the project are outlined below::
- The solar assets may not perform as well as forecasted.
- The Society may be unable to raise enough capital to complete the acquisition of the solar assets.
- Operational costs may rise faster than anticipated.
- There may be interruptions to the generation of electricity from the solar assets, caused by damage to or mechanical/electrical failure of equipment.
- Tenants may wish to purchase their house from the council through the ‘Right to Buy Scheme,’ or buildings may be demolished before the end of the 20-year lease period.
- Changes in Government legislation may affect the profitability of future renewable energy projects undertaken by the Society.
It is worth noting that the Society’s future performance might be affected by changes in market or economic conditions and changes in legal, regulatory and tax regimes affecting the Society.
For further information on risks and the Directors' perception of mitigating factors you should read the entire bond offer document.