Update on Feed in Tariff

As Pennine Community Power was in receipt of grant funding (State Aid) towards part of the installation of our community wind turbine, our Feed in Tariff payments have been suspended by OfGem, for the last few months, until this grant funding was repaid.

This situation was contrary to the advice we received at the time of installation ie that Lottery Funding was not State Aid and that even if it was then it was below a de minimis threshold. Both pieces of advice were proved to be wrong. As a result the Directors have had no choice but to negotiate with OfGem as to how much of our grant funding would need to be repaid to the Lottery. We arrived at a figure of just over £8,800 and this money, which has been raised by issuing additional share capital to existing members, has been paid to the Lottery.

We now anticipate our FIT payments being reinstated.

Unfortunately, it is likely now that the community benefit will be slightly reduced as the income of the turbine now has to service a slightly larger share capital.

For more information on FITs and State Aid, please refer to the DECC guidance which can be downloaded as a PDF here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48582/5282-feedin-tariffs-fits-and-grants.pdf

On a brighter note, the turbine itself is producing at or slightly above our predictions.

The Directors are also still pursuing modifications to the turbine with the manufacturer and installer to address the noise issues at very high wind speeds.

Share offer successful – over £33,000 applied for.

With a great last minute surge of interest, our Blackshaw Head wind turbine share offer was oversubscribed by £5,000.  We are just about to allot the shares to our 64 applicants who all live within a few miles of the turbine.

Another great piece of news is that HM Revenue and Customs have approved the share offer as qualifying for Enterprise Investment tax relief; a tax relief to incentivise social investment which shareholders will be able to take advantage of.

Meanwhile the concrete base has been poured and the tower is being constructed off-site. The turbine is on course for erection in September.

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Last few days of community share offer!

With construction of the community wind turbine at Blackshaw Head already underway, the closing date for share applications is fast approaching. Applicants have until July 31st to register for shares in Pennine Community Power’s 10kW wind turbine project.

Director Dr Mark Simmonds explained how the project is progressing. “The share offer is going well with a lot of interest from the community within Blackshaw Head and further afield. The foundations for the turbine are being constructed this week with the aim of having the turbine generating power in September. The project is really building momentum now and its great to be part of it!”.

Shares will be paid back over 15 years with an interest rate of 4%. The remainder of the revenue will be distributed to local community projects.