Anyone seen ripple energy’s offer.
You buy shares in a wind farm in exchange for a cut on your future electricity bills.
I hate seeing things like this advertised with “Quick, time is running out!” If thats the case and your running out of shares to sell, stop paying for ads to pressure sell people £1000’s of shares.
Anyone seen ripple energy’s offer.
that actually sounds like a rather good investment, imagine having free electricity every month
Is there any chance I’m able to buy shares, regardless of my membership of Ripple Energy? Could use it with getting ahead on my electric bill
In theory they would only take on 2000 investors in the co-op since the farm can only power around 2000 homes. That doesn’t seem to be the case in this scenario. So im a bit confused if they have more than 2000 homes from their customers how they plan to generate enough power.
They want to raise £4.3 million to build a wind turbine. (this cost, 2000 homes ~ x initial investment looks like it can cover the cost of a turbine)
Whats interesting as well as they mention that 5% of your share will be withdrawn each year
A percentage of each member’s shares will be withdrawn each year automatically, as part of savings on members’ electricity bills. The board expects to repay 5% of share capital each year in this way.
I’m a little unclear what they mean here. It reads as if they will effectively sell 5% of your shares each year in return for you gaining savings on your electricity.
Yeah, so this seems to confirm what I thought they were saying
Withdrawal amounts will be calculated by reference to the residual value of shares. The value life of the wind farm is five years less than the expected operating life, i.e 20 years. Each year the Board expects to repay 5% of share capital to each shareholder. If that repayment is achieved the co-op will withdraw 5% of the shares. So, if you wish to withdraw your shares after 5 years, 25% of your share capital should have been repaid by that point as part of the savings on your bills and 25% of your shares will have been withdrawn by the co-op. The residual value would therefore be 75% of your initial share capital, meaning you would be withdrawing 75% of your original investment if you chose to withdraw all your shares.
Without having done any calculations on this, it sounds like the actual benefit of this is negligible. you do not necessarily actually make any savings since you’re paying an up front lump sum for the share of the turbine. If they’re selling you’re shares and returning your capital in the form of electrical savings each year then you’re slowly losing your original investment.
I would have expected to have bought a share in the turbine, and seen the savings from the electrical power generated via a discount in my electricity. And not seen a reduction in my ownership in the turbine.
Someone correct me if ive mis-interpreted what they’re saying?
Here is their investor document https://static.rippleenergy.com/assets/GraigFatha/Ripple-Co-PilotWindProject-20200804.pdf
(the savings you make are also taxable)
It seems like you’d pay around £2k to save £4k over 20 years. Doesn’t sound great to me
It’s not much in the grand scheme of things.
I was having a think about the removal of shares from the coop, and I think they do this due to the replacement cost of the turbine after 25 years. However, in my mind, the turbine still exists, as does the coop. so why should you lose your ownership in the coop because of a depreciating asset? (which still has value, but you who paid for it, has no ownership of anymore)
Take it back I’m not interested lol
Buying shares for them to simply withdraw your share capital is the stupidest shit I’ve heard
I would have been far more interested if you kept your ownership and had a buy in (even if it did not include further share allocation, though I think it should) for a new turbine if and when they wanted to build one.
I think what they should be aiming to do is build a wind turbine farm with the money and then use said profits to make another turbine farm
Alternatively they should be simply giving you a discount on your bill and keeping your share capital as same, that’s what an investment is. They take your funds and provide you a return, but you don’t lose share capital for dividend payments anywhere else lol
Imagine. 20 years from now…
“Hi eden. You no longer have any shares with the coop and are now no longer a member. btw, new technology came out that allowed us to refurbish the turbine you used to own and now we can get another 15 years out of it. thanks for paying for it”
To put it lightly, I’d flip my fucking lid lol
Didn’t Green Energy UK once offer something similar to this, several years ago? Before all the renewable upstarts started spawning; bulb, octopus et al.
IIRC that was more along the lines of giving customers free shares in their company. This was all I was able to find on it from web archives: https://web.archive.org/web/20150420011424/http://www.greenenergyuk.com/free-shares
What’s wrong with a plain old renewables bond?
Harder to get people to panic buy?
I keep forgetting they have bond investments.
I wanted to correct some misunderstandings in this thread. I am CEO of Ripple Energy.
The co-op aims to repay 5% of the share capital each year to ensure the remaining share capital reflects the ongoing value of the turbine. Some of the bill savings would reflect repayment of share capital.
Whilst the share capital will be repaid over time, each member still owns as much of the turbine as they started out with and gets the savings associated with that ownership.
We expect the turbine’s operating life to be 25 years. During years 20-25 all of the members’ bill savings would be the benefit of trading with the co-op rather than repayment of share capital.
If the turbine operates for a further 15 years, great. The co-op members get a further 15 years of low cost electricity. They still own the turbine, even after the share capital has been repaid so still get the same electricity bill savings.
It’s also really important to understand that Ripple and the wind farm co-operative is not an investment vehicle. It is a way for people to own large scale renewable energy assets and benefit from the low cost, green electricity it produces.
This ownership model is completely new. Never before have household electricity consumers been able to own a small part of a large scale generator and get the electricity it generates supplied to their home.
Of course there are green bonds etc available. That’s not what Ripple is about. We want to democratise clean energy ownership and put people at the heart of the UK’s clean energy future. We want people to be able to own the clean energy assets they rely on.
As well as reducing CO2 the move to renewable energy makes new forms of energy ownership possible (with help from digital platforms like Ripple).
It wasn’t possible for someone to own a bit of a coal or nuclear stations to supply their home with stable priced electricity. But wind farms and solar parks are different. They can be owned by consumers. That’s the transformation Ripple wants to realise.
I hope that clarifies Ripple’s offer.
Sounds a bit odd to me. I’m very sceptical about new companies thinking up new ways to get your business