Finance Need: Claire and Joe own and run a 55-acre farm together with three holiday lets in North Leicestershire. Claire initially approached a reputable supplier of renewable energy equipment about a ground-based PV solar system but on visiting the proposed site the supplier suggested giving thought to a wind turbine.
The Situation: Initially, Claire and Joe thought their modest budget would not cover the cost of the suggested turbine complete with grid connection and planning fees, however, Claire approached Arkle to see if Arkle might assist.
What Arkle Did: Arkle was happy with the proposed location, supplier and make of wind turbine but Arkle suggested Claire and Joe take some advice about the implications of owning a wind turbine via a business partnership and the potential impact of inheritance tax should one of the two partners die. Claire and Joe took professional advice and decided to set up a new limited company with the sole purpose of operating the wind turbine.
Arkle raised the question about how Claire and Joe’s company might service the Hire Purchase repayments should the receipt of the Feed in Tariff (FiT) payments be delayed. It is entirely normal for Ofgem to pay the first FITs payments some six months following the commissioning of the wind turbine and this can put huge pressure on cashflow. Claire and Joe factored this into their cashflow and Arkle provided funding for the wind turbine with repayments spread over 7 years.