Funding Strategy

Funding Strategy

  • The total cost of the project is £1.25m.
  • A Big Lottery application for a grant amounting to £180,000 has been submitted; stage 2 of the application process is underway, and the result will be known during January 2014. If unsuccessful, the Directors have approached other funders.
  • The Scottish Government’s Renewable Energy Investment Fund (REIF) has been approached for a 10 year loan of up to £900,000.
  • Social Investment Scotland (SIS) has indicated it may consider lending the project up to £250,000.
  • The IECBS share offer objective is to raise up to £750,000 through the sale of Withdrawable shares.
  • If more than £750,000 is raised, surplus funds will be used to reduce any loans.
  • All monies raised will be held in a holding account and drawn down as required. In the event that a decision not to proceed is made, all monies raised will be returned in full, but without interest, to the parties concerned

Conservative estimates have been used in arriving at the results given below.


The amount of electricity produced by the wind turbine is expected to average 1,041MWh p.a.

The revenue received by IECBS from the Project will come from the sale of electricity (4.65 p/kWh quoted by SMARTEST Energy), and FiT payments for electricity generated (18.04 p/kWh, 2013/14 figure) both inflated by the Retail Price Index (RPI) annually and paid quarterly for the next twenty years

Based on these assumptions, annual revenues from the Project’s electricity sales and feed-in tariff are expected to be around £241k.


  • Operating expenses which include for example annual maintenance and insurance
  • Depreciation period is 20 years, and is equivalent to the capital repayment fund set aside to cover share withdrawal, share repayment at the end of the project, and/or re-investment
  • Rent with SNH (still subject to negotiation): estimated at 6% of gross revenues
  • CARES loan is £107,000: covers costs of development, project management, proportion of grid connection; is repayable on commencement of Project; written off if the Project does not proceed
  • Interest paid to shareholders is assumed to be 4% p.a.
Gross   revenues from electricity sales & feed-in tariff


Operating costs, maintenance, insurance, rent etc.


Share repayment fund


Loan interest and repayments


Shareholders’   interest


Community   Fund



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