This website uses cookies

We use cookies and other tracking technologies to assist with navigation and your ability to provide feedback, analyse your use of our products and services, and assist with our promotional and marketing efforts. View our Privacy Policy

Southill Community Energy

Financial performance

This fundraise is for £3,000,000 that will enable Southill Community Energy to develop a new 4.56MW solar park near Charlbury, Oxfordshire .

Project costs

The total funding requirement is £4.4 million of which SCE aim to raise £3 million in equity and the balance of £1.4 million as debt.

Key assumptions

  • The ground-mounted solar farm is expected to have a capacity of 4.56 MW. It is expected to generate around 4414 MWh of electricity each year.
  • The farm will be constructed by Solar Century using around 18,000 Canadian Solar regular poly-crystalline 260W panels (or equivalent) during Summer 2016 with connection to the grid expected in August.
  • SCE expect to be paid 9.4p/kWh.
  • SCE’s income will be made up of payments under the Feed-in Tariff (FIT) scheme at rates secured with Ofgem for 20 years (4.49p/kWh). Further income is expected to be secured from the sale of electricity to a supplier via the local distribution network under the Minimum Export Tariff of 4.91p/kWh.
  • The solar farm will be fully insured for risks including loss of income should the systems be off-line for an extended period of time.
  • Floor price will increase in line with RPI inflation.

Annual return

SCE aims to pay members an average annual return of 5%.

Tax relief

Shares bought under this share offer will not be eligible for tax relief under the Seed Enterprise Investment Scheme (SEIS) or the Enterprise Investment Scheme (EIS).

Forecast income and costs

The table below shows the income and expenditure over the lifetime of the project, all figures are in thousand of pounds (£,000).

Year 1-5 6-10 11-15 16-20 21-25 Total
FIT Revenue 1,066,417 1,207,483 1,361,671 1,547,230 0 5,182,801
Export Revenue 1,143,304 1,688,829 2,093,702 2,284,963 2,319,357 9,530,156
Total revenue 2,209,721 2,896,312 3,455,373 3,832,194 2,319,357 14,712,957
Operating cost 613,219 789,867 1,243,428 1,051,996 1,893,094 5,591,605
Net operating revenue 1,596,502 2,106,445 2,211,945 2,780,198 426,263 9,121,252
Reserve funds 197,452 139,134 --239,986 379,676 -311,707 164,568
Loan interest payments 333,198 257,005 156,470 34,367 0 781,040
Loan capital payments 233,517 363,889 464,424 338,170 0 1,400,000
Members’ Interest Payments 665,594 773,745 666,852 332,594 49,889 2,488,674
Members’ Capital Payments 0 329,005 867,378 1,495,479 299,096 2,990,957
Community Fund Payments 166,740 243,667 296,809 199,913 -388,985 1,296,114
Net Expenditure 1,596,502 2,106,445 2,211,945 2,780,198 426,263 9,121,352
Closing balance 0 0 0 0 0 0

Notes

  • Please note that these are financial projections and actual results may differ.
  • Loan interest and capital payments refer to payments made to our bank lender which will provide long-term project debt. The model assumes that SCE pay interest on the bank loan in year 1, but do not repay capital. In future years, the model assumes repayment of both interest and capital. SCE have not yet secured terms with a lender, and the numbers in the financial projections are illustrative only.
  • Member interest payments are based on the  capital payments at the start of the project and a proportion of cash surpluses (not profit) in each year.
  • The financial projections outlined above and the assumptions on which they are based relate to the future and may therefore be affected by unforeseen events. Actual performance may not correspond tothese projections and cannot be guaranteed.

Need help?

The Ethex team are here to help from 9am to 5pm

https://www.ethex.org.uk/savings--investments_16.html

Invest and save with Ethex to

make money do good

You can browse, compare and invest in a range of products on Ethex platform from bank accounts and ISAs to equity investments and charity bonds that offer a social/environmental as well as a financial return. All you need to do is get started...