The potential income from this project is initially between £35,000 and £40,000 per annum.
This assumes 162,000 kWh being generated per annum and sold to the National Grid at the feed-in tariff rate of 20.8 per kWh, or a bit more if a direct customer can be found for the power. The annual running costs (i.e. excluding any money paid to the initial funders) are projected to be between £16,000 and £18,000).
The above gives a surplus before financing costs that is likely to be in the region of £22,000 to £25,000 per annum. Currently the exact costs of financing the project (bank interest and investor dividends) are being investigated but, based on reasonable assumptions for these and with inflation over the projected 40 year life of the equipment, it is expected that between £750,000 and £1million will be made for the village.
There are 3 stages to financing this project, as below.
1) First stage: this, which is complete, was the significant amount of work that was done to prepare the river. This was financed almost entirely through free volunteer labour and generous gifts (see progress page). The actual money spent amounted to no more than a few hundred pounds.
2) Second stage: we are in this stage when we need to cover the costs of detailed engineering, hydrology and environmental studies – but our coffers are full after the firewood selling scheme over the last 2 years, the village fete, the party at the mill and the sale of timber from the oak tree / mobile saw mill initiative, as above.
3) Third stage: this will need up to £220,000 to cover the installation of the Archimedes screw and associated work. We will fund this through a mixture of grants, gifts, bank loans and investor subscriptions. Watch this space!
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