If you’re wondering how the funding breaks down – here’s an overview.
- As with most renewable projects the development asset is owned by an “SPV” (special purpose vehicle), Derril Water Solar Limited which is 100% owned by the cooperative.
- The total cost of buying and building the solar park is £39.5m.
- The equity from the cooperative is 56% of the £39.5m required. The remaining £17.5m (44%) of the construction cost will be funded through the bank finance facility.
- The cooperative still owns the whole solar park. The bank does not own any of it. Generation from the portion of the project financed by the bank will be sold via a Contract for Difference (“CFD”) from April 2026.
- Once the finance facility is repaid, the revenue from the sales of the portion financed by the bank will deliver additional returns to the co-op.
- The CFD provides certainty over revenues for the bank-funded portion of the project. It is not expected to affect members’ returns negatively.
Stay updated with Derril Water Solar Park
Stay up to date with project progress videos from the site – from watching the piling process to meeting the Ethical Power team, there’s lots to catch up on! We’ll continue to keep members in the loop every step of the way as Derril Water Solar Park comes to life.
