Ripple energy

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.

that actually sounds like a rather good investment, imagine having free electricity every month :stuck_out_tongue:

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Whats interesting as well as they mention that 5% of your share will be withdrawn each year

A percentage of each member’s shares will be withdrawn each year automatically, as part of savings on members’ electricity bills.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should have been repaid by that point as part of the savings on your bills and 25% of your shares will have been withdrawn by the co-op.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)

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It seems like you’d pay around £2k to save £4k over 20 years. Doesn’t sound great to me

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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

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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.

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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

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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”

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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?

https://www.triodoscrowdfunding.co.uk/investments

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Harder to get people to panic buy?

I keep forgetting they have bond investments.