The Feed In Tariff (FiT) subsidies from UK Govt have been reducing since inception of these around 10 years ago. The level has reduced to the point where in our opinion small schemes are no longer viable if financed conventionally. Bank interest on loans would soak up any profits leaving nothing for community. The calculations for the BroomPower scheme are worked out at the worst case scenario, as the banks demand, so it is likely that the return will be better than that predicted in our documents.
Community shares provide patient capital which provides a much better method of financing these projects. BroomPower volunteers worked incredibly hard to ensure they hit the deadline of the end of last September for pre-accreditation for the level of FiT we will receive. This was the last date where pre-accreditation was allowed by the UK government. Securing it by the last date means the FiT rate is guaranteed and index linked, provided the scheme is built and commissioned by March 2018. Hence the end of Aug 16 deadline for securing the finance.
Without pre-accreditation the FiT rate obtainable at commissioning would be pure guess work and there would be no way of assessing a level of return without some indication of what the scheme would produce in terms of income. Without that we would not have been in a position to secure finance from anyone.