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Complex PV Projects

Complex PV Projects. Financial Planning. Overview. Impact of FITs Development, capital & operational costs Bulk discounts Income Returns Roof options Scenario running. FITs Impact. 32.9p/kWh to 15.2p/kWh (12p for multi) 6% to 0.6% return Capital cost – how soon below £2ppw?

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Complex PV Projects

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  1. Complex PV Projects Financial Planning

  2. Overview • Impact of FITs • Development, capital & operational costs • Bulk discounts • Income • Returns • Roof options • Scenario running

  3. FITs Impact • 32.9p/kWh to 15.2p/kWh (12p for multi) • 6% to 0.6% return • Capital cost – how soon below £2ppw? • Charging for electricity • What return?

  4. Biz Plan vs Financial Plan • Bank finance • Unlikely below £1m • Unknown roofs • People led project = greater risk • Financial plan = essential from outset

  5. Financial Plan • Capital & Installation • Capital costs • Installation • ~ £2-2.5ppw installed • Operating • Maintenance/ • replacement • Insurance • Rates • Co-op admin Development • Technical • Planning • Legal • Share offer

  6. Bulk Discounts • Legals • Technical • Share offer • Cap Ex & installation • Insurance Other reasons? Time & effort, publicity hit, CO2 savings

  7. Income • FIT • Electricity sales • One price fits all or bespoke • Model impact • Think about negotiation strategy

  8. Returns • Sufficient to incentivise investment • 3-6% is normal for smaller projects + EIS • Higher = more likely to raise funds • Reduced if looking for community fund • 25 year investment with £250 minimum

  9. Roof Options • Smaller arrays used to cost more ppw • Other factors affecting price (eg scaffold) • Legal arrangements – cost? • Timescale implications?

  10. Scenarios • Compare scenarios from start – realistic expectations • Understand your negotiation constraints • Confidence – for you and ‘client’ • Change tack swiftly with new circs

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