Invest with us
Green Energy Mull is an Industrial and Provident Society (IPS) for the Benefit of the Community. Its shareholders are its members and control the Society, with each member having one vote regardless of the size of their shareholding.
Green Energy Mull has been set up using the Co-Operative model rules, which are available for inspection here Green Energy Mull Limited – Rules.
Funding will be sought from several sources:-
- Through shares in Green Energy Mull Limited, an Industrial Provident Society (IPS) established expressly for this purpose.
- Through donations and Gift Aid to Mull and Iona Community Trust. The money will be held in a bank account expressly for this purpose.
- Through interest-free loans.
- Through a loan at commercial lending rates to cover the short fall.
The targeted split in funding is shown below.
- Shares in Green Energy Mull IPS £300,000
- Gift Aid £50,000
- Interest Free Loans £50,000
- Bank Loan £700,000
Funding needs to be in place before a contractor can be engaged.
Subscribe for shares
Each share in Green Energy Mull has a nominal value of £50. The minimum shareholding for an individual is £250. Shares have to remain invested for at least 3 years (plus 180 days’ notice) after Green Energy Mull starts trading (selling power). Shares in Green Energy Mull are not transferable in the way that shares in for example BT are, they are termed as ‘withdrawable’ shares – only the issuer, Green Energy Mull, can buy them. Shares in Green Energy Mull will never go up in value but can have their value reduced to zero if Green Energy Mull fails. Green Energy Mull will buy shares back at the discretion of the Board which will make decisions based on the financial situation.
While the investment is primarily a social investment in the community and its environment, investors can expect a reasonable rate of return on their investment. The level of interest will be set by the board of Green Energy Mull annually. The maximum level of interest is limited to 2% over the Co-operative Bank’s base rate or 5%, whichever is the higher.
How do I buy shares?
Download and print or request the GEM -Share Application
- Complete & sign form
- Send with cheque or bank instructions
- Return by post or deliver to Green Energy Mull, An Roth Community Enterprise Centre, Craignure, Isle of Mull. PA65 6AY.
Membership of Green Energy Mull is open to individuals, corporate bodies, voluntary organisations and public sector investors.
What happens when I apply?
Shares are payable in full on application. We will acknowledge receipt of your cheque and application and may cash your cheque as soon as it is received.
The Directors intend to consider all applications received after the first Annual General Meeting.
If we have received more money for this offer than we need, we may decide to issue you with fewer shares than you applied for. In this event, we will return the balance to you within 28 days of the Board of Directors meeting. Priority will be given to people living on the islands of Mull, Iona, Ulva, Gometra, Erraid and Calve.
The share offer document outlines the process in full, including what will happen if we do not raise sufficient funds to proceed with the hydro scheme.
Will the value of my shares increase?
The value of shares in Green Energy Mull will not increase, but may reduce if liabilities exceed assets.
You cannot cash in your shares during the first three years following the scheme starting to sell electricity. After this date you can apply to withdraw capital, but must give 180 days’ notice, and the decision is entirely at the Board’s discretion although we will consider all requests sympathetically. Further details will be available in the share offer document.
However, we urge potential investors to view a stake in Green Energy Mull as a long term investment, and only to invest funds if they are able to make a long-term commitment to supporting the project.
Why should I invest?
There are at least three good reasons to invest
- There is the feel good aspect that comes with generating green energy. There is an ambitious national target to have 100% of our electricity green by 2020. It will take a lot more than this project to get there but ‘every little helps’.
- There is the satisfaction of being a member of an Industrial Provident Society-IPS that has been established for the benefit of the community.
- Finally there is a financial benefit.
An IPS established for the benefit of the community can pay members interest on their shareholding. Green Energy Mull anticipates paying 4% pa from year 3 of electricity generation.
Additionally it is possible to have as much as 50% of your investment refunded by Her Majesty’s Revenue & Customs under the Seed Enterprise Investment Scheme (SEIS). This requires:
- Green Energy Mull to be accepted as a qualifying business under the SEIS
- The member to have paid HMRC at least that amount in tax,
- The member to invest £500 or more and commit to holding the investment for at least three years.
NB SEIS is only applicable to the first £150,000 invested in a project. However the Enterprise Investment Scheme (EIS), which promises up to 30% tax refund on the same basis as SEIS, is expected to be applicable for investments over the £150,000 mark.
NNB If you are in any doubt about SEIS/EIS then consult your financial adviser and/or look at the HMRC website.
In short, help the environment, help the community and help yourself all at the same time.
Click here for a copy of the Scott Moncrieff Business Plan for the project and here for the appendices to the business plan; Scott Moncrieff Business Plan Appendix 1 Scott Moncrieff Business Plan Appendix 2 Scott Moncrieff Business Plan Appendix 3 Scott Moncrieff Business Plan Appendix 4
The total capital cost of the project, including contingencies, is estimated to be £1,100,000. A Financial Forecast has been prepared including a detailed long-term income and expenditure forecast. The Green Energy Mull financial plan provides the income and expenditure estimates. Inflation has been included in the forecast as the income from the FITs is index-linked.
After commissioning, and throughout the life of the project, the anticipated sources of income are from the Feed-in Tariff scheme (FITs) based on electricity generated being exported to the national grid and electricity sales. The total income is estimated to be approximately £140,000 a year, indexed linked. Income in the first year of operation has been budgeted for at half the expected annual income to allow for any delays. For the first year of operation, in addition to the capital costs, there will be a one-off revenue cost of approximately £10,000 associated with the Share Issue. A cash reserve will be allowed to increase over the first few years of the project to provide a contingency against any unforeseen events. It is anticipated that returns to shareholders will commence from Year 3 and a return of 4% is forecast. Although the final decision on the interest rate is decided by the board of Directors at the AGM. At the same time funding should be available to support other community projects.
As well as enjoying an annual return on their investment, it is anticipated that if needed shareholders will be able to request the repayment of their shareholding after the project has been operating for three years.
In addition to repaying the loans and making payments to shareholders, the project’s cash flow forecast demonstrates that sufficient cash will be generated to enable Green Energy Mull to support other community based projects throughout Mull, Iona, Ulva, Gometra, Calve and Erraid.