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BNRG Hoo Solar

Return 6.30%-6.7% IRR (variable)
Term 24 yrs & 5 mths
Total Invested £385k
272  investors
Maturity date 22 Jul 2037
thumbnail of BNRG Hoo Solar

What does the company do?

BNRG Hoo Solar is part of the BNRG Renewables group, an established solar PV developer with an extensive portfolio of projects completed across the UK, Europe, the US and Australia.

BNRG Hoo Solar owns and manages a 249kWp solar PV installation situated at Hoo Farm in Kent. This site, completed in 2012, generates green energy from ground mounted solar panels which goes into the UK grid and helps power our homes and businesses. The solar system is accredited for the Feed-in Tariff scheme, which pays a fixed amount (rising annually with inflation) for each unit of electricity generated, plus an additional amount for the electricity exported to the grid. The company can choose to opt out of the export Feed-in tariff and instead agree a contract with an energy supplier when wholesale electricity prices are higher.

Why did the company raise money?

This was the BNRG group’s first investment on Abundance. The money raised by this investment in 2013 refinanced the funding that was used to install the solar PV system situated at Hoo Farm.

How does the company expect to repay the investment?

BNRG Hoo Solar expects to repay investors from the operational revenues it earns over the life of the investment from the solar system.

How is the company making an impact?

BNRG Hoo Solar is helping to increase the amount of renewable energy used in the UK’s electricity grid as we transition to a 100% low carbon energy future.

249kWp solar PV installation situated at Hoo Farm in Kent
249kWp solar PV installation situated at Hoo Farm in Kent

Key terms

Issuer BNRG Hoo Solar
Return 6.30% - 6.7% IRR (variable, based on performance)
Term period 24 years and 5 months
Start date 27 February 2013
Maturity date 22 July 2037
Capital repayment Regular instalments
Amount raised £385,000.00
Return structure

Investment returns are paid every 6 months over the life of the investment (the first period was only 5 months).

The amount returned to investors in each period is linked to the performance of the company in the preceding 6 month period. In each period, the return paid goes first towards repaying an equal instalment of the original capital invested, and anything above that amount in each period will be paid as investment income.

Secured or unsecured Unsecured
Early repayment options

The company can only make an early repayment of the investment in certain circumstances, such as a change of control of the company (for example, if some or all of the company was sold to a new owner) or a regulatory/tax requirement.

Documents

Debenture Deed
Download PDF The debenture deed sets out the legal agreement and terms for this investment.

Payment schedule

This table gives a breakdown of what has been paid back to date on this investment, based on an example investment of £1,000. The return on this investment is linked to the performance of the project during each return period.

Payment schedule table
Payment date Capital repayment Dividend Total
30 September 2013 £16.18 £14.91 £31.09
2 April 2014 £20.50 £4.29 £24.79
30 September 2014 £20.50 £24.52 £45.02
2 April 2015 £20.50 £2.69 £23.19
30 September 2015 £20.50 £31.71 £52.21
1 April 2016 £20.50 £0.31 £20.81
30 September 2016 £20.50 £25.80 £46.30
31 March 2017 £20.50 £4.61 £25.11
29 September 2017 £20.50 £30.08 £50.58
29 March 2018 £20.50 £3.49 £23.99
1 October 2018 £20.50 £36.80 £57.30
2 April 2019 £20.50 £0.54 £21.04
1 October 2019 £20.50 £20.30 £40.80
1 April 2020 £20.50 £5.72 £26.22
1 October 2020 £20.50 £40.48 £60.98
6 April 2021 £20.50 £0.00 £20.50
1 October 2021 £20.50 £18.48 £38.98
1 April 2022 £20.50 £3.04 £23.54
30 September 2022 £20.50 £18.32 £38.82
31 March 2023 £20.50 £20.15 £40.65
29 September 2023 £20.50 £85.97 £106.47
2 April 2024 £20.50 £10.74 £31.24
1 October 2024 Variable Variable Variable
2 April 2025 Variable Variable Variable
1 October 2025 Variable Variable Variable
2 April 2026 Variable Variable Variable
1 October 2026 Variable Variable Variable
2 April 2027 Variable Variable Variable
1 October 2027 Variable Variable Variable
31 March 2028 Variable Variable Variable
29 September 2028 Variable Variable Variable
2 April 2029 Variable Variable Variable
1 October 2029 Variable Variable Variable
2 April 2030 Variable Variable Variable
1 October 2030 Variable Variable Variable
2 April 2031 Variable Variable Variable
1 October 2031 Variable Variable Variable
1 April 2032 Variable Variable Variable
1 October 2032 Variable Variable Variable
1 April 2033 Variable Variable Variable
30 September 2033 Variable Variable Variable
31 March 2034 Variable Variable Variable
29 September 2034 Variable Variable Variable
2 April 2035 Variable Variable Variable
1 October 2035 Variable Variable Variable
1 April 2036 Variable Variable Variable
1 October 2036 Variable Variable Variable
2 April 2037 Variable Variable Variable
1 October 2037 Variable Variable Variable

Updates

These updates tell the story of the investment over its life and include information reported to investors by the company or council behind the investment. The updates are provided for informational purposes only and do not constitute an inducement or invitation to invest. Information provided at the time of publishing may no longer be accurate.

Electricity generated 111.3%
Cash Return* 101.6%

The electricity generation was above forecast for the period. Actual costs for the period were broadly in line with forecast. Our solar system on Hoo Farm did experience some downtime this period due to an electrical fault , however it was only for 7 days in October.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 105.1%
Cash Return* 214%

There were no operational issues reported in this period and electricity generation was above forecast. Actual costs for the period were broadly in line with forecast. Additional costs incurred were mainly as a result of a new monitoring system/new SCADA program.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 110.9%
Cash Return* 134.9%

There were no operational issues reported in this period and electricity generation was above forecast. Actual costs for the period were broadly in line with forecast, although we had an additional cost of £2,796 to replace additional MC4 connections. Inverters were detecting resistance within the string caused by poor electrical connections which was later identified as corrosion in the MC4 connectors. All MC4 connectors have been replaced on the site regardless of showing signs of corrosion or not. If any cables show signs of corrosion these were shortened or replaced as necessary. The themselves have not shown any defects however spare modules are now on site should replacements be required.

An investment return from BNRG Hoo Solar was paid today.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 120.2%
Cash Return* 70.5%

There were no operational issues reported in this period and electricity generation was slightly above forecast.

Actual costs for the period were relatively in line with forecast apart from one large non-recurring item to note was a cost of £10,777 to carry out the replacement of MC4 connectors at the farm, which was carried out in Q1. MC4s connect panels together. There was corrosion found in the connectors which was having an impact on production so they had to be replaced.

Currently the assessment of the impact of COVID19 remains unchanged from the prior period.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 97.6%
Cash Return* 79.7%

There were no operational issues reported in this period and electricity generation was slightly lower than forecast.

Actual costs for the period were relatively in line with forecast. One non-recurring item to note was a cost of £2,373.38 to carry out the replacement of MC4 connectors on an inverter at the farm, which was carried out in October 2021. MC4 connectors are effectively used to connect solar panels together to form a string of panels. Accruals for audit & tax fees will be split between this periods return and the next period.

Currently the assessment of the impact of COVID19 remains unchanged from the prior period.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 108.0%
Cash Return* 81.6%

There were no operational issues reported in this period and electricity generation was slightly higher than forecast.

Our actual costs for the period were higher than those forecasted for two reasons. Our rent agreement at the farm includes an annual increase in line with inflation however this increase had not been applied between 2013 and 2020 – we agreed a settlement with the landlord in May to pay an amount to catch up on these adjustments. Further, we had a one off cost of £6,557 in April to carry out some remedial works to rusty distribution boxes on the Hoo farm (which take the electricity we generate to the nearby meter).

Currently the assessment of the impact of COVID19 remains unchanged from the prior period.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 92.1%
Cash Return* 70.1%

There were no operational issues reported in this period and electricity generation was slightly lower than forecast.

Our electricity generation has historically always been lower in this period due to seasonality. Generation was 98% of the original forecast and the electricity prices received were lower – reflecting low power prices across the market in 2020.

Each period, the distribution to investors goes firstly towards repaying a proportion of your capital, with any excess being the return. Based on our revenue and costs for this period, the operating surplus was not going to be sufficient to cover the capital repayment. We have therefore deferred some of our costs in order to meet our capital repayment obligation. With the next 6 months being the sunnier period, we expect to be able to both cover the costs and pay out a return to investors.

Currently the assessment of the impact of COVID19 remains unchanged from the prior period.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 121.7%
Cash Return* 130.3%

There were no operational issues reported in this period and electricity generation was higher than forecast. The higher level of electricity generated resulted in revenues being higher than forecast, although this was partially offset by some higher than forecasted audit and corporate tax costs.

Currently the assessment of the impact of COVID19 remains unchanged from the prior period.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 98.9%
Cash Return* 92.5%

There were no operational issues reported in this period and electricity generation was slightly lower than forecast.

A new export Power Purchase Agreement (PPA) was signed and took effect in 1 July 2019. The benefit of this is now reflected in the uplifted revenue numbers versus the last period. However the new PPA is still below the forecasted rate, resulting in a lower Cash Return than anticipated. Power prices in the UK are universally low presently and this is likely to continue for some time. This is for a large part mitigated by the Feed in Tariff which is fixed, index linked and the largest proportion of Hoo Farm’s revenue along with the project’s generation performing well. Thankfully we do not anticipate COVID19 having a material impact on Hoo Farm. Meter reads are taken in person, quarterly. If this was not possible we expect Ofgem would take a view that prior year averages would be acceptable. If there was a fault on site Operations and Maintenance (O&M) teams may be delayed in getting to site and remedying. This may impact the export capacity of the site, which may result in lower revenue. Management, in conjunction with our O&M provider, deem this risk to be low.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 108.4%
Cash Return* 89.0%

There were no operational issues in this period and electricity generation was higher than forecast.

However, despite the increase in operational output versus the base case, revenues have been below expectations as a result of a reduced Power Purchase Agreement (PPA) price. This is the price received for the electricity exported to the grid. The PPA price secured for the last year was only at the Export Feed-in Tariff rate which is effectively a floor payment that is secured when the market rates are low. A new export PPA was signed and took effect on 1 July 2019

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 109.5%
Cash Return* 75.7

There were no operational issues in this period and electricity generation was higher than forecast.

However, despite the increase in operational output versus the base case, revenues have been below expectations as a result of a reduced Power Purchase Agreement (PPA) price. This is the price received for the electricity exported to the grid. The PPA price secured for the last year was only at the Export Feed-in Tariff rate which is effectively a floor payment that is secured when the market rates are low. This PPA is now coming to an end and we are currently going to market to secure a PPA price for the coming year. We are confident that this will be higher and will be secured prior to the summer period when we generate a much higher proportion of our yearly electricity and therefore revenues. As a result of the lower revenues in this period, the operating surplus available for distribution to Debenture holders is lower than forecast.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 109.3%
Cash Return* 127.5%

A gloriously sunny summer contributed to high electricity generation for this period. There were no operational issues reported in this period.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 100.7%
Cash Return* 88.2%

There were no operational issues reported in this period.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 109.3%
Cash Return* 115.3%

There were no operational issues reported in this period.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 110.7%
Cash Return* 94.5%

There were no operational issues reported in this period.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 104.0%
Cash Return* 108.1%

As per the update before last, there were costs related to an operational issue in mid-2015 that were spread across this period and the last.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 94.2%
Cash Return* 80.2%

As per the last update, there were costs related to an operational issue in mid-2015 that were spread across this period and the next.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 105.2%
Cash Return* 124.9%

There was an issue on-site in this period which was not impacting on performance but was incorrectly causing the meter to show generation during the night. This would have invalidated Hoo Solar’s Feed-in Tariff submissions so remedial work was carried out. This cost will be spread across the next two periods but will not impact investor returns in the long term.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 101.5%
Cash Return* 91.6%

There were no operational issues reported in this period.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 113.1%
Cash Return* 110.4%

There were no operational issues reported in this period.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 100.6%
Cash Return* 100.4%

There were no operational issues reported in this period.

An investment return from BNRG Hoo Solar was paid today.

Electricity generated 109.2%
Cash Return* 108.0%

The first period was a short 5 month period but future Cash Returns are for 6 months. There were no operational issues reported in this period.

This investment closed today.

BNRG Hoo Solar opened for investment today.