"If we all just do a little bit": Jody

Jody's investing in Southill Solar. She says "the best way to combat climate change is if we all do our little bit - and hopefully I'm doing my bit!" Join us - help make a difference.

Help combat climate change

Southill Solar will generate enough green electricity to power 1,100 home for 25 years. We manage the land to create a environmental benefits - and habitat for rare British plants and animals. We will generate about about £30,000 a year for local community projects. Then, when 25 years are up, we dismantle it, recycle what we can and return the land to its former state. What's not to love?

Do your bit! Share offer closes 8 April - act now

Need more information?

Contact us at any time or call the impartial team at Ethex on 01865 403 304.

Why this Fund Manager & CEO is investing in Southill Community Energy

Ben Peters is a Fund Manager & CEO at Wise Investment, and Charlbury resident. Wise provides investment management and financial advice for individuals, and manages a range of investment funds. Read his business and personal reasons for investing in Southill Community Energy. 

Wise Investment was founded twenty four years ago in Chipping Norton. We continue to be based in the local area, and will remain so for decades to come. As I look out to the next quarter of a century, I wonder how we will responsibly resource our business. What better way to do that than to back a project that will provide carbon-free energy, generated locally?

Ben Peters, CEO Wise Investments

Ben Peters, CEO Wise Investments

As a business backing Southill Community Energy we don’t just get the knowledge that the electrons powering our lights and computers have come from green sources. We will also get a financial return over the quarter century life of the project. Our mindset for our clients’ investments is long term, we intend to serve our clients for the long term, and the investment in SCE matches those beliefs. It is a necessity of running our business that we hold long term capital, and making a positive investment with a portion of that makes financial sense for us.

For a local enterprise the investment in SCE doesn’t stop at green energy and financial returns. We value the fact that the community has allowed us to build our business in the area. Indeed, many of our clients are locals. As a business that looks after other people’s money, you might say we have a vested interest in ensuring that the region remains prosperous!

“It allows us to have our cake and eat it, to generate financial returns for us, and help to improve the community”

The setting up of SCE as a Community Benefit Society thus adds a third attractive element to the proposition. It allows us to have our cake and eat it, to generate financial returns for us, and help to improve to the community. All within one straight forward investment.

On a personal note, my wife Harriet and I have individually invested in the project. Our children, Rose and Bea, attend Charlbury Primary School and we all enjoy the positive community in which we live. The outputs of green energy, investment return and benefits to the local community are as attractive to us as individuals as they are to Wise. In the very long term the beneficiaries of all of this will be Rose and Bea, and their children.

I think that’s an investment worth making.

"A brilliant use of the land": Guy

Guy is investing in Southill Solar for his children's future and partly because he sees brilliant opportunities for biodiversity on the site. Read about investing for your family.

The environmental benefits

Dr. Guy Parker is the ecologist advising Southill Community Energy about how best to manage the land. His plan will enhance biodiversity on the Southill Solar site - making sure that wildflowers, bird and mammals flourish on the site.

Share offer closes 8 April - so invest now!

Need more information?

Contact us at any time or call the impartial team at Ethex on 01865 403 304.

More Answers for 60+ Investors| With Financial Adviser Robin Algar

We have a growing number of 60+ investors and many more of this profile still looking to invest, many of whom come to us with the same questions. We can of course answer many of these ourselves, but some fall outside of our remit. We have invited local Charlbury Financial Advisor Robin Algar to help answer some of the most common questions we are being asked by 60+ investors.

 

1: I’m unlikely to be alive by the time the term of this investment is up! Can I access my capital sooner?

Southill Community Energy: This is a long term term investment and you should not invest capital that you think you will need back within 25 years. However capital payback does start from year 6, and you can leave the shares to your beneficiaries in your will (see below)  and they would receive the income and distributions of capital after you have passed away.  As stated in the share offer document, you can apply to have your capital released sooner and of course every effort will be made to meet the needs of investors, but this shouldn’t be relied on. Lastly, Ethex.org offer a match-making service to put potential buyers in touch with those wishing to sell.

2. Can I bequeath the capital and if so how does it work in practice?

Robin Algar. Within your will you can make a specific bequest to a named individual, otherwise the shares would form part of your estate and would be dealt with according to the terms of your will e.g. if your will stipulates that you want everything to go to your spouse then the shares would be included in that.

Southill Community Energy: :  If you have shares valued at £5,000 or less, and you nominate someone in your will to whom you would like to leave them, Southill Community Energy  will transfer the shares to that person.  If you have shares that are worth more than £5,000, Southill Community Energy will transfer shares with a total value of £5,000 to your nominee, and your executor will be responsible for dealing with the remainder.  Please note that the minimum shareholding is £250, so you cannot leave shares worth less than that to any one individual.

3. Can I appoint a trustee on behalf of my grandchildren? If so, how do I go about doing this?

Robin Algar: You could gift shares to a trust during your lifetime and appoint Trustees to administer the assets within the Trust for named beneficiaries, or classes of beneficiaries, which could include grandchildren. There will be tax implications so you should take advice, and as well as paying for advice there may also be legal fees for setting up and administering a Trust. Trusts are mainly used for mitigating Inheritance Tax, and ring-fencing assets to ensure that they are received by the ‘right people at the right time’. They can also speed up the process of distributing assets because the assets would not form part of the estate and could be distributed to beneficiaries without having to wait for probate to be passed. However, this is the case whatever assets you place in Trust, and shares in SCE wouldn’t really be any different. The important thing is to get advice on whether or not you actually need a trust. There might be be simpler ways of dealing with the problem, especially if the problem is Inheritance Tax (IHT).

4. I’d like to buy some shares on behalf of my grandchildren now rather than buy them for myself, then bequeath. Is this possible?

Robin Algar: You need to be at least 16 to hold shares, so whilst you can buy them on behalf of your grandchildren, you (or the parents) would need to hold on to them until the grandchildren are 16 and the shares can be gifted, or you could place them in Trust as mentioned above.

5. What happens if I haven’t nominated anyone to receive my shares?  

Southill Community Energy: If you hold shares worth £5,000 or less, Southill Community Energy  will transfer the shares to your next of kin (husband, wife, civil partner, or children, for example). If you do not have any next of kin, or if you hold shares worth more than £5,000, all the shares will be transferred to your executor to deal with. In all circumstances, Southill Community Energy will need to see supporting evidence before transferring any shares.

6. If I pass the shares down as part of my estate, are they subject to inheritance tax?

Robin Algar: Usually a gift needs to be made at least 7 years before death occurs to become entirely free of IHT. However, the accountants have advised that if you buy these shares in your own name, and keep them for 2 years, they can then (under current rules) be left to anyone completely free of Inheritance Tax. After two years you can also give them away, and even if you die within 7 years of that gift, the gift is still free of IHT as long as the recipient still owns the shares at the date of death.

Southill Community Energy: The qualifying exception for Inheritance Tax is under Business Relief for Inheritance Tax. Find out more at the Gov.Uk website and also read the inheritance tax handbook at Communityshares.org.uk. We of course  advise all investors to seek independent advice.

7. Any other tax relief I should be aware of?

Southill Community Energy: Yes, the first £1000 of income received from interest payments in all investments is not liable for income tax.

 

Any more questions? Do visit the investor page on this website to find out more where you will find more information on the financial returns and more general information for families considering investing. Lastly, if you're still looking for reasons to invest, why not dip into the blog where you will find our Investor Stories series. 

WITH MANY THANKS TO ROBIN ALGAR DIPPFS CERTS CII (MP & ER) FOR KINDLY SUPPORTING SOUTHILL COMMUNITY ENERGY IN ANSWERING QUESTIONS ON BEHALF OF OUR 60+ INVESTORS.

Lastly, of course, if you can't find your answers here, then please do not hesitate to contact us. 

 

 

 

 

TOP 7 QUESTIONS FROM FAMILY INVESTORS

Whilst there is a great deal of information on the website, share offer document, and Ethex website, there are some questions that keep cropping up. Here are the answers to the questions we get asked most often by younger investors with families.  

 

1. I would really love to invest for my children. Can I put the investment in their name?

Yes, you can invest for your children. If your children are under the age of 16, they will need to be purchased under the buyer’s name. The shares can be transferred to them to hold in their own right once they have reached their sixteenth birthday. If a sizeable sum is invested, and you would like the share-holding to form part of a trust, we would recommend seeking independent legal and financial advice. We have more specific questions and answers related to trusts and bequeathing shares in this Q&A piece.

 

2. Will there be tax to pay on shares that I leave to my children?

Usually a gift needs to be made at least 7 years before death occurs to become entirely free of IHT. Southill Community Energy does however qualify for exception from Inheritance Tax under Business Relief for Inheritance Tax (assuming you survive your investment by 2 years.).  You can read more about this on the Gov.Uk website and also read the inheritance tax handbook at Communityshares.org.uk. We of course strongly advise all investors to seek independent advice in this area.

3. In the share offer document (page 22), it says I am at risk of losing 5% of my investment if the project does not meet its target equity raise. Should I be worried?

This is possible but unlikely. A lot has happened since the publication of the share offer document and we have been working hard to secure the finance for the project so that the solar farm can be built regardless of how much equity has been raised. We are working through the various financing options available to us and are confident that we will be able to get the scheme up and running without our investors losing out.  We will share news and update investors soon.

4. I am nervous about investing because the ETHEX Website says the loan hasn’t been secured.

Project finance debt is taken to make up the difference between equity raised and total project cost. This will be negotiated after the equity raise is closed because securing debt is contingent on the capital investment from the local community and/or other sources. The banks will agree an Indicative Heads of Terms prior to the equity being secured but would not sign specific heads of terms until the business has everything in place to give confidence that the loans will be repaid.  This is why investments via the Ethex website are so important. To reassure you, the team has every confidence in the financing of this project -  all the key negotiations for our funding routes are taking place, including bridging finance and alternative construction finance.  If you have any further questions on this, please do not hesitate to contact us.

5. You’ve got planning permission for a project on the Cornbury Estate but no formal land agreement.  This seems risky to me as a potential investor.

There is no reason to be concerned in this instance. It is normal practice for developers to take out an ‘option’ on the land, which is a legal agreement drawn up by lawyers. This can cost thousands of pounds. Given our strong relationship with Lord Rotherwick of the Cornbury Estate, who is very committed to our project, and our own commitment to run “a tight ship”, we have relied on an exclusivity agreement since February 2013 and a more recent Letter of Intent, including Heads of Terms, to give us the security we need to take the project forward. The full lease is now in draft, including those Heads of Terms, for us to review and we expect it to be signed shortly.

6. 25 years is a long time to put the money put away. I may need to access that sum sooner.

Yes, this is a medium to long-term investment and may not suit investors who need ready access to the funds. However, do consider;

  1. We will start to repay capital invested from year six.

  2. For those that wish to withdraw some or all of their investment you can of course apply to the Directors and every effort will be made to meet investor needs, subject to the availability of cash in the business.

7.  We want to put our money away for the full term and are considering making it part of our pension plan. Is the scheme eligible for a Self Invested Personal Pension?

Yes, if you already have a SIPP then you can invest in Southill shares in the same way that you might invest in any other shares. Again, we would recommend seeking independent advice.

 

Any more questions? Do visit the investor page on this website to find out more where you will find more information on the financial returns and more general information for families considering investing. Lastly, if you're still looking for reasons to invest, why not dip into the blog where you will find our Investor Stories series. 

Lastly, of course, if you can't find your answers here, then please do not hesitate to contact us. 

 

 

 

 

 

"A profitable investment, and really ethical": Ally

Ally and Chris bought shares in Southill Solar because they see it as a 'profitable investment, and really ethical'. Here's why you should invest. 

"What better thing to invest our money in?"

Ally says he loves the idea of harnessing the power of the sun to generate electricity, and sees Southill Solar as a step towards making our community semi-self sustainable.

Southill will also generate money to invest in local renewable energy projects - take a look at the community benefit fund. Buy shares and you become a member - which means you get to have a say in what projects we fund.

Share offer closes 8 April - so invest now!

Need more information?

Contact us at any time or call the impartial team at Ethex on 01865 403 304.