I keep hearing the term ‘Savings’ in relation to generation from my part of Kirk Hill/Derill Water.
Having asked Ripple support for clarification I have been told that the return of capital, expected to be 5% per year of remaining capital, is INCLUDED in the savings figure.
If I have worked out my own situation correctly i should generate £129 of ‘savings’ in year one from Kirk Hill at 3.2p per kWh. I have been told to expect £119 of that to be classed as capital return. This means the actual taxable income from Kirk Hill in 1 year on a £2380 investment is just £9.90. I clearly have not read the prospectus or understood the model properly but this equates to a very pathetic 0.41% ROI. Most of the Savings, indeed 92% of them are not savings at all they are return of my investment capital.
Have I got this right as support seem to be avoiding stating it in simple terms as above but the tax implications video from the CFO indicates this is exactly how it works.
Feel good factor from investing in renewables is 100%, ROI is a disaster and something i really wish i had understood properly before investing again in Derill Water.
Anybody that invested in Craig Fartha that could confirm this is the case?
Thanks
John