Pershore & District Sports Club
The Bottoms
Defford Road
Pershore
WR10 1HZ
Business Plan
FiT Scheme – Solar Panel
June 2011
Version 1.0
1 of 7
Business Plan - FiT Scheme – Solar Panel, June 2011 - version 1.0| Pershore & District Sports Club
Version Control
Revision History
Version
Date
Reason
Author
0.1
20/05/2011
Draft Documentation
G Rushton
0.2
27/05/2011
Prices upload and new location
identified
G Rushton
0.3
01/06/2011
Updated with further detail following
further review
G Rushton
0.4
02/06/2011
Updated with further detail following
further review by G Pugh
G Rushton
1.0
23/06/2011
Issued following Review
G Rushton
Supporting Documentation:






2 of 7
Severn Waste Fund - Application Form
FiT headline detail
PV Cover Letter
Q-B0420 V_1.0 1.88kWp
P-B0420 D5.0 1.88kWp
Sports Club Constitution
Business Plan - FiT Scheme – Solar Panel, June 2011 - version 1.0| Pershore & District Sports Club
Sign off
Name
Role
Stewart Speake
Club Trustee
Jim McBride
Club Chairman
Roger Wilks
Club Treasurer
Gavin Pugh
Club Secretary
3 of 7
Date
Signature
Business Plan - FiT Scheme – Solar Panel, June 2011 - version 1.0| Pershore & District Sports Club
Contents
1.0 Introduction...................................................................................................................................... 5
2.0 Summary of Proposal ...................................................................................................................... 5
3.0 People ............................................................................................................................................. 5
4.0 Commercial Analysis ....................................................................................................................... 6
4.1
Commercial overview .............................................................................................................. 6
4.2
Quotation Summary ................................................................................................................ 6
4.3
Returns .................................................................................................................................... 6
4.4
Grant Request ......................................................................................................................... 7
5.0 Risk & Operational Issues ............................................................................................................... 7
4 of 7
Business Plan - FiT Scheme – Solar Panel, June 2011 - version 1.0| Pershore & District Sports Club
1.0
Introduction
Pershore & District Sports Club is located in the heart of Pershore and provides Hockey, Cricket and
Squash facilities to Pershore, the District of Wychavon and across Worcestershire. The club itself
dates back to the late 19th Century and for those members who have been fortunate to be associated
with the Club it is at the heart of the community.
The club has maintained involvement of junior and senior players from many different social and
ethnic groups and have been particularly successful in reaching out to smaller villages from
Worcester to Evesham.
The Cricket Section runs 3 men’s Senior Teams, a Ladies Team, Many Youth Teams from Under 11’s
up to under 18, hosts several junior and lady county match and further extends the clubs reach across
the county
The Hockey Section runs 5 senior teams (3 men’s, a ladies and veterans team), providing an
excellent way to give youngsters (13+) an opportunity into team sport.
There is a vibrant Skittles league which runs through the summer months and 2 squash courts
providing the only facilities within the immediate Area.
2.0
Summary of Proposal
As you are aware in 1st April 2010 the government launched a feeding Tariff Scheme to encourage
low scale generation. This scheme rewards it 3 fold:
o
o
o
Return for generation at £43.30 per MWh for installation below 4 KWh
Reduction in KWh on Bills as generation is off set against demand.
Pay-back for generation not used, 3.1p per KWh returned to the grid will also be
received.
With the current economical climate I’m sure you can appreciate the difficult time clubs like ours are
experiencing, especially in encouraging lower income families to continue their involvement. Our plan
includes ways to minimise the costs to the low income bracket and simultaneously improve our
facilities to widen the club’s ability to self-finance in the future.
The ability to take both the environmental benefits that the physical property on Defford Road and the
Land Fill Tax Grants Scheme will enable us to ensure some long term finance to support our goal.
3.0
People
We have engaged a company called Caplor Energy based in Hereford who would install and maintain
the Trina Solar Panels.
The project Team will be small with contributions from the Committee in the shape of a Trustee – Stewart
Speak, Chairman – Jim McBride, Secretary – Gavin Pugh and Treasurer – Roger Wilks.
Support and Project Management will be provided by 2 Club Members with a wealth of Industry Knowledge
Project Manager – Gareth Rushton, Business Improvement Manager with Gazprom Marketing and Trading Retail
Ltd, with over 10 years Electricity experience
5 of 7
Business Plan - FiT Scheme – Solar Panel, June 2011 - version 1.0| Pershore & District Sports Club
Project Support – Steve Ridsdale, Head of Business Sales with Ecotricity, with over 10 years Electricity
experience
4.0
Commercial Analysis
4.1
Commercial overview
The huge incentive that the government have placed on small scale generation has attracted many
individuals (at home) and business’s to take advantage by the installation of Wind Turbines, Solar
panels and small scale CHP generation facilities on site. Furthermore there has been an influx to the
market of companies offering to both business and domestic users a free system set up, where the
customer receives the return of the export Tariff and savings on invoice, but they pick up the greater
reward of the Generation tariff.
The major barrier to entry of this scheme across the UK is the large set up costs coupled with the
period of nominal payback (circa 12 years for our project). If we are able to remove the potential
impact of set up cost by a successful application for a Land Fill Tax Grant we will be able to reduce
our nominal payback period to less than 18 months, providing an income of around £800 per annum
for the remainder of the scheme. Without a significant grant to support we will be unable to proceed
with the project
For Full details of commercial analysis please see supporting documentation: P-B0420 D5.0
1.88kWp.PDF
4.2
Quotation Summary
Price of system (excl VAT)
VAT @ 5%
Total Price of System
£9,151.60
£457.58
£9,609.18
We are also recommending taking a SMA extended warranty for 10 years on protecting the inverters
at a cost of £211.68. To best mitigate against a requirement for contingency within the first decade of
operation.
4.3
Returns
Estimated Generation Tariff (FIT)
Estimated Export Tariff
Estimated savings in electricity purchases
Total Estimated effective annual revenue
£678.51 /yr
£24.29 /yr
£101.46 /yr
£804.26 /yr
Scheme to Run for a further 24 years, total remuneration estimated in the region of £19,000
6 of 7
Business Plan - FiT Scheme – Solar Panel, June 2011 - version 1.0| Pershore & District Sports Club
4.4
Grant Request
For Pershore & District Sports Club to take advantage of the government FiT Scheme we will require
a grant of just under £8,500. As mandated within the grant application we will need to raise 10% of
the total project costs, and VAT can be recovered directly from HM Customs and Excise.
4.4.1
Costs
Price of system
£9,151.60
VAT @ 5%
£457.58
10 year Warranty on inverters
£211.68
Total
4.4.2
£9820.86
Funds
Grant Required
£8,426.95
Club Funds
£936.33
VAT Claim Back
£457.58
Total
5.0
£9820.86
Risk & Operational Issues
The installing company we have identified (Caplor Energy) will provide warranties, after sales
support and user training. This coupled with the extended warranty proposal on the inverters will
cover the vast majority of the kit for the initial 10 years.
Risk Items:
1. Quote is only valid for 30 days; this will need to be refreshed upon grant approval. We are
seeking assurances that the price will not fluctuate excessively.
2. Protection from Cricket balls – given change of position from club house roof to squash court
roof this is much less of a risk.
3. April 2012, if the project is not completed by this point there is a danger that the returns will
be affected due to government reform, anything installed by this point will be valid for
length of initial scheme. Likely impact is only on larger “small generation” sites i.e. above 10
KWh.
4. Connection to the grid by DNO, this is usually free, but any charges incurred would be
payable by Pershore & District Sports Club.
5. Affect on insurance premium – should be significantly out-weighed by the positive returns
7 of 7
Business Plan - FiT Scheme – Solar Panel, June 2011 - version 1.0| Pershore & District Sports Club