To ensure we keep our community pub in Halse, maybe some folk would like to join the scheme and become shareholders?
We are writing with details of our PV Solar Panel loan scheme.
Our electricity prices are set to more than triple from 18 December, taking the annual bill to around £36,000. Adding the gas bills that will mean that utilities will be about £48,000 per year. We are not alone in facing this situation. The hospitality trade associations are warning of widespread closures, especially rural pubs. To help combat the rise in electricity bills we want to spend £21,000 exc. VAT on a PV solar panel installation which is estimated to provide around a quarter of our electricity – 17,000 KW Hours per year. The New Inn uses electricity consistently so we do not believe battery storage will be necessary to maximise the use of the power generated, however this will be assessed once the solar system is installed – hopefully in March. No grants are currently available; however, we will keep looking!
Loan arrangement proposal
To raise the funds quickly, we propose to raise the money through loans secured against the New Inn property. Repayment will be over 6 years, with only interest paid in the first year.
Fuel prices are forecast to come down in 2024 which will support the repayment of the capital.
Interest will be paid by preloaded gift cards twice yearly. The interest rate will be 6% per annum.
The interest payment of 6% in first year is £1,260, at the current day rate that equates to a saving of £1,400 due to the energy we will have generated.
The savings versus the new quoted rates in the first year will be around £11,000 for the energy we will produce, having paid interest at 6%. That is about 30% of the forecast annual electricity cost, due to the difference in day and night prices.
Tax on interest must be declared as usual on lenders tax returns.
Minimum loan is £500.
Following the first note we have had firm commitments from a number of supportive shareholders. But we still need more to take this forward, and we need to act quickly to secure the panels in the current market.
Please contact Mike Davis on halsecommunitypub@gmail.com or 07846 956036 for more information or offers to participate.
