Burneside Community Energy
Burneside Community Energy reaches £250,000 target and is now closed.
Due to a phenomenal response, Burneside Community Energy has exceeded its target of £250,000 and is now closed to all investors.
We will be contacting all applicants / investors in the next 4 days with a decision on your application, the size of your share allocation where appropriate and whether your application was received within the first £150,000 (for SEIS) or if it was received with potential EIS eligibility.
If you have invested and either your application has been turned down (on account of prioritising local residents) or if you will be allocated less shares than you applied for, we will contact you by email or by phone by 12pm 24th November 2015 to allow you time to reinvest in other community share issues with EIS, should you wish (the Government’s deadline for eligibility is that you must receive share certificates before 30th November 2015).
Thank you to everyone who has supported this project. It demonstrates that alternative methods of local investment, community and economic benefit really work!
For the full Share Offer Document click here.
Click here to see the FCA Rules of Burneside Community Energy.
Click on the individual links to access the application forms…
250kw Solar PV Array on the Roof of James Cropper PLC, Burneside, Near Kendal, Cumbria.
Where is it?
The 250KW PV solar array will be sited on the roof of James Cropper PLC’s Burneside Mills, Nr Kendal, Cumbria LA9 6PZ. Founded in 1845 and a world leader in the production of paper and advanced materials, James Cropper PLC (www.cropper.com) places great emphasis on its company values which include strong commitments to community and sustainability. The photo shows James Cropper PLC’s central location in Burneside.
Why has James Cropper PLC been chosen for a photovoltaic array?
A series of considerations led Burneside Community Energy to work with James Cropper PLC. We were keen to find a company or organisation in Burneside whose ethos, commitment to community, local employment, tackling climate change and/ or safeguarding landscape reflected our own values. BCE also needed to find a company or organisation whose roof was:
● Sufficiently large to make the installation of a solar PV array economically viable
● The owners of which were prepared to purchase electricity from BCE and which would use a large proportion (if not all) of the electricity produced by the PV panels
● From which the solar generating capacity would not be significantly impinged by aspect or shading
● Which would not cause concern regarding visual impact
The synergy with James Cropper PLC was obvious from the start and we are delighted that both BCE and James Cropper PLC’s management have agreed to the development of this exciting project.
Burneside Community Energy will be contracting Sundog Energy Ltd to install a 250kw capacity of solar PV, generating 193,000kwh per annum of electricity, saving approximately 1.91million kgs of CO2 over 20 years. By Year 20 we have based income on a generation capacity of 87% of the Year 1 generation levels owing to slight deterioration in output expected for PV technology over this period.
Sundog Energy Ltd from Flusco, near Penrith in Cumbria are a long established company with installations all over the UK. The company is committed to helping community owned renewable energy.
● The total project cost will be approximately £250,000 + VAT.
● Annual maintenance costs, insurance and management of Burneside Community Energy will be approximately £4,500 pa.
● New inverters have been budgeted for 2026 at a cost of £25,000.
Gross annual Income in the first full year of operation is projected to be approximately £28,000 pa, consisting of the Feed in Tariff and solar PV electricity bought by James Cropper Plc. After annual maintenance costs, this leaves a surplus of approximately £23,500 pa in the first full year of operation for payment of interest, capital repayments and community benefit.
Risks: Technical, Legal and Financial
Like all renewable energy projects, no project is without risk, though steps have been taken to minimise risks including careful selection of installer, appropriate siting of array and long term lease of the required area. The financial modelling has also taken into account risk factors as far as identifiable including degradation of PV performance, operational and administrative costs.
Grid Connection and local surveys
The project has received the required approval from Electricity Northwest, the District Network Operator or DNO. Although the electricity will be supplied direct to James Cropper PLC this is required for any generation that operates in parallel with the grid, as is the case at Burneside Mills. A survey of the roof structure to confirm it will carry the array has been carried out with no cause for concern. The installer has also checked and confirmed and budgeted for the electrical integration works required.
A Lease has been drawn up between BCE and James Cropper Plc. This comprehensive lease covers matters including minimum term of 20 years, peppercorn rent (in return for discounted electricity).
Power Purchase Agreement
James Cropper PLC have agreed to buy electricity generated by the array at a discounted price of 5.5p/kWh. This will be codified in a power purchase agreement (PPA) prior to commencement of generation. The figure will be adjusted annually in line with the retail prices index (RPI). Should the PPA purchase price ever exceed the price that James Cropper PLC pays to import electricity (currently at a significant premium), this will trigger a price review.
Figures for solar output have been calculated using industry standards, site specific aspect, roof angle and shading potential based on postcode of LA9.
Maintenance of the Solar PV array
The financial modelling of the solar pv installation accounts for replacement of the solar PV inverters during their lifetime at a cost of £25,000 in 2026. The panels themselves come with a 25 year guarantee. It is estimated that after 20 years, the panels will still generate at 87% efficiency of their Year 1 output. An annual decrease in performance has been accounted for in the projected income. BCE has budgeted a small amount for annual maintenance.
Contact: Ellergreen, Kendal, Cumbria, LA9 5SD. 01539 726013. firstname.lastname@example.org