Orchard Solar Farm, Kent

Orchard solar farm, Kent

Offer Document

The information on this website is only a summary of the offer document.

Before applying for shares the whole text of the accompanying share offer document should be read.

Important information for prospective investors

If you are in any doubt about the information on this website, the content of the accompanying prospectus or the action you should take, you should immediately consult a person authorised for the purposes of the Financial Services and Markets Act 2000, who specialises in advising on investment in shares and other securities.

Prospective investors should be aware that the value of the shares, which will not be quoted, cannot go up, but can go down. In addition, there is no certainty that investors will get back the full amount they invest.

We are delighted to invite you to invest in Orchard Community Energy through the first North Kent and Medway community energy share offer.

By Investing in Orchard Community Energy share offer to raise £1 million investment, you will be helping to build and operate a 5 MW solar array, currently under construction at Orchard Farm near Iwade, Kent. As a community-owned asset, it should provide a valuable income that can be reinvested in the local community.

Investment product type Withdrawable shares. Withdrawable shares can’t be sold on to anyone else, but you can withdraw them by asking the Society to return your investment (subject to terms and conditions – see ‘Getting your money back’ below). The price of a withdrawable share does not increase, although in some circumstances it can decrease.
Financial return Orchard Community Energy is forecasting an annual return of about 7% assuming Retail Price Index (RPI) inflation is 1% for the next two years, but after that averages 2.5% per annum (in line with the long-term average). Returns to investors are not guaranteed.Read more about the project finances and additional debt finance on the Financial Performance section of the share offer.
EIS & SEIS Qualification OCE is in the process of applying to HMRC for Advance Assurance that the Shares are eligible for tax relief under the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS). MongooseEnergy has already successfully achieved SEIS and EIS for several community benefit society share offers.If the shares are granted SEIS and EIS status then tax relief of 50% for SEIS and 30% for EIS investments will be available to qualifying UK income tax payers.
Feed in Tariff The project is commissioned by June 2016 and secures a Feed in Tariff of 6.16p/kWh. The Feed in Tariff income is for a period of 20 years. In years 21 to 25 the income stream is from exported electricity. Feed in Tariff income and all costs increase in line with inflation which is assumed to be 2.5% each year.
Community Fund The provision of significant local community benefits is central to OCE’s vision. We will recycle 100% of surplus profits into local communities in the Swale and Medway districts through a community fund. We estimate that the Orchard Farm Solar Array will provide at least £10k per annum during the early years. This amount will increase in the later stages of the project. Over 25 years this could result in £3 million being available for distribution to local communities via the community fund.
Minimum investment amount £250
Maximum investment amount £100,000
How secure is your money? You will only receive interest if the Society generates sufficient funds and if the directors choose to pay interest in line with their stated policy. Your original investment will not normally change in value, but it can reduce in value if the net asset value of the shares falls below their original value.
This investment is not covered by the Financial Services Compensation Scheme or dispute resolution scheme
Tax considerations Interest is paid gross without deduction of any tax. You will also receive inheritance tax relief on these shares if they form part of your estate.
Voting rights This investment entitles you to one vote in the Society, no matter how much or how little you invest.
Qualification This investment is available to persons aged over 16 only.