Alternative Markets - solar brochure


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Alternative Markets offer a flexible way to make a large or small, low risk investment in
renewable energy, with this 20 or 25 year investment opportunity.

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Alternative Markets - solar brochure

  3. 3. Alternative Markets Investment Overview 2 Market Trend For Solar 5 Project Partners 7 Risk Assessment 11 FAQ 13 References 15 20 or 25 year investment, predictable 7-9 % p.a returns 1
  4. 4. Guaranteed quarterlypayments direct fromGood Energy & E.on
  5. 5. Alternative Markets INVESTMENT OVERVIEW INVESTMENT OVERVIEW 20 OR 25 YEAR RENEWABLE ENERGY INVESTMENT Solar projects are flourishing across the UK. Driven by Government backed Feed in Tariff schemes, and the global drive for clean, renewable energy sources. Alternative Markets offer established fully managed Solar Initiatives with predictable 7 - 9%* p.a returns paid quarterly direct from a major UK energy supplier. Index linked for up to 25 years, a projected total return of over 200%. Alternative Markets offer a flexible way to make a large or small, low risk investment in renewable energy, as a one-off product or as part of a balanced portfolio. INVESTMENT HIGHLIGHTS Original investment sum returned plus a potential 100% capital uplift. 20 or 25 year index linked investment, predictable 7 - 9%* p.a returns. Guaranteed quarterly payments direct from Good Energy/ E.on. Government backed guaranteed Feed in Tariff’s (FiT). Invest with confidence - Clear, predictable schedule of returns. Good Energy, the UK’s only 100% green energy supplier. 100% of Feed in Tariff income paid. No restriction on investment size. No physical installation required. SIPP/SASS or cash investment. All installations are UK based, insured and fully maintained for the 20/25 year term. Ethical Investment – Diversify your portfolio with renewable energy. 2
  7. 7. Alternative Markets INVESTMENT PORTFOLIO TYPICAL INVESTMENT ILLUSTRATION “Mr John. B” had paid into a private pension with a well known UK pension provider for almost 20 years. Upon examination of his retirement fund he realised that things were not as expected and his fund was losing value every year. John took some advice and opened a SIPP (self invested personal pension) with significant tax advantages and took control of his retirement planning. Via his SIPP, John acquired a portfolio of producing solar leases. The transaction was quick and simple and within weeks John’s SIPP received its first payment under the Government backed Feed in Tariff. Purchase cost of 4 systems £ 46,451 Locations – Kent, Devon, Northants and Hampshire Projected gross Income over 25 years £116,867 (251.59%) Projected net income over 25 years £70,416 (151.59%) Alternative Markets Investment Illustration System 124 System 172 System 231 System 247 LOCATION ESSEX DEVON NORTHANTS HAMPSHIRE System Capacity 3.31 3.9 3.9 3.51 Annual predicted yield 1253 kw 1248 kw 1228 kw 1224 kw FIT rate 16.8 16.8 16.8 16.8 Cost £10,643 £12,494 £12,287 £11,027 Projected Gross Earnings £26,777 £31,434 £30,913 £27,743 3
  9. 9. Alternative Markets INVESTMENT PORTFOLIO STRUCTURE OF INVESTMENT The portfolio was created to provide a Income varies depending on the system platform for a long term, reliable renewable output and the FiT rate in force at the time that energy investment, available as an addition the system was installed. to SIPP/SASS pension scheme or as a standalone investment. Each solar installation varies in output, dependent on a number of factors. Alternative Each individual solar installation is installed Markets audits each system and use predictive and fully operational, having passed software, which uses empiric meteorological stringent due diligence and quality control data to accurately predict the annual output before being added to the Alternative Markets for each installation. Each installation in the portfolio. Already recorded on the OFGEM portfolio comes with an individual report and central FiT register and contracted to one of a prediction of potential income. six national energy suppliers under the Government Feed in Tariff (FiT) scheme. Systems are highly efficient and have guaranteed performance over a 20 or 25 Alternative Markets and their operating partners year lifespan. Insured and with full have long experience in the development of maintenance included, systems are high quality solar installations. Alternative monitored and optimised for peak Markets is a growing portfolio of selected performance. prime SPVs (Special Purpose Vehicles) consisting of over 2000 domestic and Each installation is fitted with a generation commercial solar PV installations. meter, which is enabled, using GPRS You may lease one or more complete solar technology to transmit data to a central pv installations from the Alternative Markets collection point. This data indicates how portfolio. The term of each lease runs much electricity each system generates per concurrent with the Feed in Tariff contract, day. These figures are compared with generally 20 or 25 years. You receive 100% regional generation meters to ensure of the income earned during this period. expected performance and to flag up any service issues. ROCs (Renewable Obligation certificates) and FiTs (Feed-in Tariffs) generate quarterly The UK Feed-in Tariff scheme directs that payments made directly from national payment is made by national energy energy companies, in proportion to the suppliers for each kilowatt hour (kWh) amount of electricity generated by each generated by renewable energy. Payments individual solar installation. are index linked and made quarterly for the term of the investment/ lease. 4
  11. 11. Alternative Markets MARKET TREND FOR SOLAR MARKET TREND Feed-In Tariffs were first introduced in Although the UK government initially Germany in the 1990s. They proved very resisted the introduction of feed in tariffs, successful and have made Germany a the creation of the new Department of global leader in renewable energy Energy and Climate Change (DECC) in production. Tariffs are now widely used 2008 and the changes to UK law in the across Europe and since 2010 in the UK. 2008 Energy Act paved the way for a boom in domestic renewable energy production. OFGEM FEED IN TARIFF TABLE UK progress against 2009 EU Renewable Energy Directive 4.0% 3.5% 3.0% P erc entage 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2004 2005 2006 2007 2008 2009 2010 2011 5
  13. 13. Alternative Markets MARKET TREND Renewable energy is energy that comes The sun is largest energy source on the planet, from natural resources including solar, wind, and it is green and free. Solar is renewable geothermal heat and biofuels. In 2009 the energy that does not pollute the air and water EU Renewable Energy Directive was or add toxic wastes to the environment. Solar agreed, setting a target of 20% of all EU reduces our dependence upon other sources of energy to come from renewable sources. energy that pollute the environment and consume Under this directive the UK must produce vast quantities of diminishing resources. 15% of its total energy consumption from renewable sources by 2020. Solar power has proven to be a reliable, predictable source of energy and income. This Directive and an increasing global China is poised to double its solar capacity focus on the reduction of carbon emissions for the second year in a row and solar is has succeeded in motivating governments also quickly becoming a viable solution for across the world, to introduce incentives to . the 1.3 billion people around the world with help promote the increase in the adoption of no access to grid energy. renewable energy. Even though government subsidies are set Carbon is released when coal is burned to to wind down over the next few years in generate electricity. These carbon Europe and the United States for solar, big emissions harm the environment producing investors are already picking up the slack. greenhouse gases and air pollution. Solar Berkshire Hathaway owned MidAmerican provides a sustainable means of generating Energy Holdings announced in December it electricity, reducing your carbon footprint purchased a solar farm in Southern and helping create a cleaner, less polluted California for $2 billion. Google reported it environment. invested over $450 million last year in solar projects. GE announced in 2011 that it’s going to build the largest solar plant in America, capable. of powering 80,000 homes each year. 6
  15. 15. Alternative Markets PARTNERS PARTNERS SOVENTIX Soventix GmbH was founded in April 2010 In June 2011, Sovello Projects was as Sovello Projects GmbH and grew rapidly renamed Soventix, backed by the as a large scale solar installer in Germany international financial investor Vorndran and market leader in its domestic market. Mannheims Capital Advisors GmbH, (former Today Soventix designs, builds and VENTIZZ Capital Partners Adisory AG) which operates high quality solar power systems has had previous successes in the all over the world and has offices in photovoltaic industry with companies Ersol, Germany, Australia, South Africa, Canada PV Crystalox and 1366 Technologies. and the USA. EON E.on is one of the UK’s leading power and gas from E.on at home and at work – gas companies – generating electricity, and making them one of the top energy retailing power and gas – and is part of the companies in the UK and as part of the E.on group, one of the worlds largest E.on group, also one of the top energy investor-owned power and gas companies. companies in the world. Five million people get their electricity and 7
  16. 16. Alternative Markets PARTNERS GOOD ENERGY Good Energy were the first energy supplier to offer 100% renewable electricity to UK households when they were founded in 1999. Producing electricity purely from wind, water, sun and sustainable bio generation, Good Energys Good Energy is making fundamental projected 2012/13 fuel mix changes to the way energy is generated and used in the UK. Wind: 57% Hydro: 7% Good Energy has always believed the UK Solar: 30% can be powered purely from renewable Biogen: 6% energy. From sunshine, wind, water and sustainable biogen, it produces 100% clean energy. 40,000 UK Solar Installations Producing 30% of its green electricity from a growing community of over 40,000 independent suppliers across Britain. Green energy pioneered incentives for renewable generators almost a decade ago and have been offering an expert Feed-in Tariff service through award- winning schemes ever since. Certified Green Investment Partner Good Energy is fully verified by the Green Energy Supply Certification Scheme, the industrys equivalent to Organic Certification. 8
  17. 17. Alternative Markets PARTNERS Paul OBrien Solar Installations Progen Solar Ltd Paul O’Brien Solar Installations are a ProGen is committed to providing only the leading installer of both commercial and most environmentally safe and ethically domestic solar systems. With offices in sound products, protecting the environment Bristol, Newport and Belfast and 1000’s of for future generations. With ProGen Solar satisfied customers, they have built their we offer an extensive choice of solar reputation on the professional, friendly, high systems designed and manufactured to the quality service they provide. highest standards. ProGen conducts home energy surveys making it easy for you to access the government energy grant funding and the F.I.T (feed in tariff). We will even supply an Energy Performance Certificate. Each one of our installations is backed by an Independent Warranty so you can rest assured that our promises are kept and our guarantees upheld. Property Solicitors Arc Property Solicitors specialise in clients around the country and last year residential and commercial conveyancing. alone we handled in excess of £400m in We are property specialists and offer property transactions. nationwide conveyancing both online and offline. Unlike many other conveyancing We are committed to providing a modern, companies we employ fully qualified efficient conveyancing service from our solicitors - as well as conveyancers - to head office in Harrogate, North Yorkshire. ensure we are able to provide a fast and Weve streamlined our procedures to speed thorough conveyancing service. As were a up the conveyancing process. Much of the registered solicitors practice, we are work is carried out online and we also regulated by the Solicitors Regulation operate a paperless office policy, so your Authority. We have acted for thousands of files are only ever a couple of clicks away. 9
  19. 19. Alternative Markets RISK ASSESSMENT RISK ASSESSMENT GENERAL RISK WARNING law, HMRC practice or in the tax treatment Potential investors should carefully consider of the investment or any of the Investors. the following risk factors in relation to the investment, which individually or in OPERATIONAL RISK aggregate could have a material effect on In the event of unforeseen circumstances or the investment return, and should consult any natural disasters, out of control of any their financial advisor before investing. one person or entity the returns payable may fall. Under these circumstances, there REVIEW AND EVALUATE is no assurance given the investment will Prospective Investors are not to construe achieve the target of return. The income is the contents of this document as tax or legal ultimately determined by the amount of advice. Prospective Investors should power which is produced through each carefully review and evaluate the risks, and individual solar installation and the amount other information contained in this of power produced, depends on the amount document before making the decision to of sunshine received at the site. An average invest in the SPV. If in any doubt, meteorological calculation, (Pvsol) has been prospective Investors should immediately used in order to determine a conservative seek their own personal advice from their amount of sunshine. independent professional advisor, who specialises in advising on the acquisition of NO FORECASTS shares and other securities, or other Historical facts, information and trends advisors such as legal advisors and gained from historic experiences, present accountants. facts, circumstances and information, and assumptions from all, or any of these do not SUITABILITY OF INVESTORS guide the future. Aims, targets, plans, An investment of this nature is only suitable intentions and projections referred to are no for investors who are capable of evaluating more than that, and so do not imply a the merits and risk of such an investment. forecast. Past performance is not Prospective investors should consider necessarily a guide to future performance. carefully whether an investment is suitable for them in light of their personal TAXATION circumstances and their financial resources Each investor must consider their own tax and should take appropriate independent position, and must take their own specialist professional advice. advice. Any potential investors who are not UK resident for tax purposes are strongly LEGISLA TION advised to seek specialist advice on their The information in this document is based own position. on the understanding of current law and practice. None of the Directors, agents, or any of their advisors can accept responsibility if there is any change in the 10
  20. 20. Alternative Markets RISK ASSESSMENT RISK ASSESSMENT NO INVESTORS’ money laundering prevention checks as COMPENSATION SCHEME detailed in the application process, and is The Investors Compensation Scheme as duly authorised to complete and sign off the operated by the Financial Services required detail on the Introducing Advisors Compensation Scheme in the United Kingdom section of the application form. is not available for claims relating to investment into the Alternative Markets Portfolio. REJECTION Any potential investor not meeting the MONEY LAUNDERING requirements will have their application Procedures for the prevention of money rejected as we are under a legal duty to laundering measures aimed towards the comply with the Anti-Money Laundering prevention of money laundering, require Regulations. each applicant to verify his/ her identity and source of funds and wealth to the COMPLIANCE Administrator. Applicants, depending on All investors should complete the their structure, will be required to provide application forms fully and comply with the the Administrator with evidence of identity information/requirements stated therein. and source of funds and wealth, as more particularly set out in the application form DATA PROTECTION provided to applicants. This obligation is The Company and or the Administrator may absolute and the Administrator will notify the hold personal data relating to the past and supplicant if proof of identity in addition to present Shareholders. Personal data may that specified in the application form is be retained on record after it is no longer used. Such personal date is processed by required. the Administrator to maintain the register of members and mailing lists, which may VERIFICATION involve sharing such data with third. By In accordance with the Money Laundering becoming registered as a holder of a lease Regulations 2007, the investment from the Alternative Markets, a person administrators will require verification of the becomes a data subject and is deemed to identity of every potential investor and any have consented to the processing by the authorised intermediary acting for a Company or the Administrator of any personal data relating to them in the prospective Investor. Any forms submitted manner described above. Any details or must be completed in full, and the payment information submitted during the course of mechanism as detailed in the application the application will be retained on a forms and shareholders and subscription database at its registered office, under the documentation must be adhered to strictly. provisions of the Data Protection Act 1998. At its discretion, however, the Administrator may accept a money laundering certificate as evidence that the Introducing Advisor has diligently carried out the appropriate 11
  22. 22. Alternative Markets FAQ What is the process of investment years for all clean energy produced. The FAQ (cash and SIPP/SASS investor)? energy providers issue quarterly performance figures to the energy The process is simple and similar to regulator OFGEM who makes payment to purchasing property. To register your the energy supplier. You then receive interest you must complete and return a 100% of the FIT payment direct from the reservation form and supply proof of your energy supplier. identification in line with money laundering regulations. Contracts will then be sent How do I know my system/s will and settlement made to our UK based perform well? Solicitors, Arc Property Solicitors, who, acting on your behalf, check all documents Each individual solar installation is and title are correct before authorising the installed and fully operational, transfer of the lease to your chosen having passed stringent due diligence and beneficiary. Quarterly feed in tariff quality control before being added to the payments will then be made to an account Alternative Markets portfolio. Each installation of your choice. The process is simple and is fitted with a generation meter, which is similar to purchasing property.To register your enabled, using GPRS technology to interest you must complete and return a transmit data to a central collection point. reservation form and supply proof of your This data indicates how much electricity identification in line with money laundering each system generates per day. These regulations. Contracts will be issued to figures are compared with regional your SIPP trustee, and settlement made to generation meters to ensure expected our UK based solicitors Arc Property performance and to flag up any service Solicitors, who, acting on your behalf, issues. check all documents and title are correct before authorising the transfer of the lease to your SIPP/SASS. Quarterly feed in tariff compensation scheme? payments will be sent directly to your SIPP/SASS account. No. The Investors Compensation Scheme as operated by the Financial Services Compensation Scheme scheme work? in the United Kingdom is not available for claims relating to investment into the In order to help meet European Union Alternative Markets. targets for carbon reduction, the government introduced Feed in Tariff’s or FIT’s to incentivise clean energy production. The scheme guarantees to pay a fixed price, index linked for up to 25 12
  23. 23. Alternative Markets FAQ What is PVGIS (Photo Voltaic Can ownership of my lease be FAQ Geographical Information transferred? System)? Yes, you may reassign ownership of PVGIS is a free to use web based your lease as you wish. This is a tool for the calculation of solar energy simple, standard transaction for your yield. Built for the European Union Joint solicitor. Research Council and generally recognised as the most precise predictive measure of future performance. PVGIS provides detailed estimates of energy output based on the equipment used, precise location of each installation, climatological data from the European Solar Radiation Database and other calculations. What happens if my system malfunctions or is stolen or damaged? Your system is fully insured for damage, malfunction, loss or theft. Any interruption in performance will be quickly highlighted and the appropriate action taken to get things back on track. What happens to the systems at the end of the lease period? At the end of your lease, the solar panels are legally transferred to the home owner on whose roof they are situated. As the panels have an effective life span of maybe 50 years, they will continue to produce clean, green, subsidised electricity for many years to come. 13
  24. 24. Alternative Markets REFERENCES REFERENCES The following industry references have been utilised in the production of this white paper. Alternative Markets cannot be held responsible for any information utilised from these reference articles. For any questions on the contents of the items below please refer to the article’s author. DEPARTMENT OF ENERGY & CLIMATE UK Energy in Brief: a summary of some of the key developments in the UK energy system CERTAINTY FOR FEED-IN TARIFFS Energy and Climate Change Minister, Greg Barker OFGEM FEED IN TARIFF TABLE tables/Documents1/Tariff%20Table%201%20August%202012%20PV%20Only.pdf GOOD ENERGY FEED IN TARIFF COMMUNITY GREEN ENERGY SUPPLY CERTIFICATION SCHEME UK DEPARTMENT FOR ENERGY AND CLIMATE CHANGE SOLAR POWER FOR WORLD’S POOREST SAINSBURYS CLAIMS TITLE OF BIGGEST SOLAR POWER GENERATOR IN EUROPE generator-europe Trademarks and Copyrights - All trademarks referenced in this document are recognised by Alternative Markets and remain the property of their respective owners. Disclaimer of Liability - Alternative Markets makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contain in this document or any sites linked referenced. Limitation of Liability - THE MATERIALS INCLUDED ARE PROVIDED "AS IS" WITHOUT ANY EXPRESS OR IMPLIED WARRANTY OF ANY KIND INCLUDING WARRANTIES OF MERCHANTABILITY, NONINFRINGEMENT OF INTELLECTUAL PROPERTY, OR FITNESS FOR ANY PARTICULAR PURPOSE. IN NO EVENT SHALL ALTERNATIVE MARKETS OR ITS AGENTS OR OFFICERS BE LIABLE FOR ANY DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS, BUSINESS INTERRUPTION, LOSS OF INFORMATION, INJURY OR DEATH) ARISING OUT OF THE USE OF OR INABILITY TO USE THE MATERIALS, EVEN IF ALTERNATIVE MARKETS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGES. 14
  25. 25. ALTERNATIVE MARKETS World Trade Centre, Zurich, Leutschenbachstrasse 95, 8050 Zurich, Switzerland Tel CH: (+41) 43 508 1418 Email: Tel UK: +44 (0) 2033 846 260 Web: Investment Group BVI Acorn MG1 Berkeley Street Level 17, Dashwood House,London W1J 8DJ DELIVERING INDIVIDUAL 69 Old Broad Street, London EC2M INA & BUSINESS SUCCESSTel: +44 (0) 845 835 4772 Tel: +44 (0) 207 256 4284Fax: +44 (0) 845 835 4772 Sales: +44 (0) 207 099 6580 Fax: +44 (0) 207 757 7423Email: Email: info@acorn-mg.comWeb: Web: www.acorn-mg.comE.on Soventix GmbHWestwood Business Park Schifferstrasse 200Coventry, England 47059 Duisburg, GermanyTel: +44 (0) 24 7642 4000 Tel: +49 (0) 203 449 860 0Fax: +44 (0) 24 7642 5432 Fax: +49 (0) 203 449 860 990Email: Email: info@soventix.comWeb: Web: www.soventix.comGood Energy Arc Property SolicitorsMonkton Reach, Monkton Hill The Studio, GreengateChippenham, Wiltshire SN15 1EE Cardale Park, Harrogate HG3 1GYTel: +44 (0) 845 456 1640 Tel: +44 (0) 800 612 9097Fax: +44 (0) 1249 766091 Fax: +44 (0) 412 359 4688Email: Email: info@arcpropertysolicitors.comWeb: Web: www.arcpropertysolicitors.comPaul OBrien Solar Installations (SW) Ltd Progen Solar LtdUnit 6, Brookgate, South Liberty Lane 10 Old Wood Close, ChorleyAshton Vale, Bristol BS3 2UN Lancashire, PR7 2FZTel: +44 (0) 117 953 3234 Tel: +44 (0) 800 756 6299 Fax: +44 (0) 800 014 8072Email: Email: Web: