Frequently Asked Questions

We're exploring whether Skirwith could benefit from a community-owned solar energy installation. An independent feasibility study (commissioned by Westmorland & Furness Council and carried out by Arthian Ltd) concluded that there are viable options — specifically ground-mounted and roof-mounted solar panels — and we're now seeking the village's views before deciding whether to proceed.

The feasibility study identified two solar installations:

• Ground-mounted array (~100 kWp) on agricultural land near the northern edge of the village
• Roof-mounted panels (~101.5 kWp) on farm buildings at the north of the village

Combined, they would generate approximately 191,000 kWh per year — roughly equivalent to the electricity needs of 65 homes.

The ground-mounted 100 kWp array would require approximately 300–400 solar panels (depending on panel wattage — current panels are typically 400–500W each). Land requirement is roughly 0.5–0.7 acres (about half a football pitch) for a fixed-tilt system. The roof-mounted 101.5 kWp system uses existing farm building roofs and requires no additional land.

Both sites have been assessed in the feasibility study for suitability, access, and proximity to grid connection points.

The project would be owned by a Community Benefit Society (BenCom) — a democratic, community-controlled legal structure. Key features:

• One member, one vote — regardless of how much anyone invests
• A statutory asset lock — assets can never be taken out of community ownership
• Open membership — any resident can join
• Surplus income goes to a community benefit fund

This is the same structure used by hundreds of successful community energy projects across the UK.

There's no one-size-fits-all. Residents can choose the level of involvement that suits them:

1. Investor

You buy community shares (from as little as £50) and become a member of the society. As an investor you:

• Earn a target annual return of 4–5% on your shares
• Get one vote at general meetings (regardless of how much you invest)
• Help shape decisions about how the project is run and how surplus income is spent
• Have your capital gradually repaid over the project lifetime (~20 years)

Investing carries a small degree of risk (see "What are the risks?" below), but is backed by a physical asset with predictable, long-term revenue.

2. Participant (beneficiary)

You don't invest any money, but you still benefit from the project being in the village:

• Access to the Community Benefit Fund — grants for village projects, fuel poverty support, and local improvements funded by project surplus
• Potential to receive cheaper electricity if a local supply arrangement is set up in future (you'd simply switch supplier — no investment required)
• A say in community benefit spending if you join the society as a non-investing member
• Reduced carbon emissions and improved energy resilience for the whole village

You don't need to do anything to benefit from the Community Benefit Fund — it supports the village as a whole.

3. Opt out

You prefer not to engage with the project at all. That's completely fine:

• Nothing changes for you — you stay with your existing energy supplier, no disruption
• The project's viability does not depend on universal participation
• You can change your mind at any time in the future (join as a member, invest, or switch supplier)
• There is no pressure, and no disadvantage to opting out

Where the money comes from

The solar panels generate electricity, which earns revenue in three ways:

1. Self-consumption savings — electricity used locally avoids buying from the grid (currently ~28–34p/kWh) 2. Export payments — surplus electricity sold to the grid via the Smart Export Guarantee (typically 3–6p/kWh) 3. Power Purchase Agreements — longer-term contracts to sell output at a fixed rate

How returns are paid

From this revenue, the society pays in order:

1. Operating costs (maintenance, insurance — ~£2–4k/year) 2. Any loan repayments 3. Interest to shareholders — your annual return 4. Gradual repayment of share capital over the project lifetime 5. Community Benefit Fund — surplus goes to village projects

What returns look like

| Feature | Typical | |---------|---------| | Target annual interest | 4–5% | | How it's paid | Annual payment on your share value | | Lock-in period (no withdrawal) | 3 years (typical) | | Capital repayment period | ~20 years | | Minimum investment | £50 | | Maximum investment | £10,000 |

A worked example

If you invest £500 at 4% per year:

• You receive £20/year in interest
• After the 3-year lock-in, you can request withdrawal of some or all of your capital
• Or leave it invested and continue earning returns
• Over ~20 years, the society repays all share capital

How this compares to other savings

| Option | Typical annual return | Risk | Access | |--------|----------------------|------|--------| | Bank savings | 3.5–4.5% | Very low (FSCS protected) | Instant | | Community energy shares | 4–5% | Low (asset-backed, predictable revenue) | After lock-in | | Stocks & shares ISA | ~7% long-term average | Medium–high | Tradeable |

No. You don't need to invest a penny. If the project goes ahead, the whole village benefits through:

• The Community Benefit Fund (grants for village projects, fuel poverty support)
• Potential for lower electricity rates if local supply arrangements are set up
• Reduced carbon emissions for the village

Investing is entirely optional.

• Interest is not guaranteed — it's paid only if the project generates sufficient surplus. In practice, well-run solar projects almost always pay because output is highly predictable.
• Not covered by FSCS — community shares are not protected by the Financial Services Compensation Scheme (unlike bank deposits). However, the investment is backed by a physical asset (the solar installation) with a 25–30 year productive life.
• You could lose your investment — though this is very rare for operational solar projects with no debt problems.
• Shares are withdrawable, not transferable — you can't sell them to someone else, but you can ask the society to buy them back after the lock-in period (subject to board discretion and available cash).

Some community share offers qualify for Social Investment Tax Relief (SITR) or the Enterprise Investment Scheme (EIS), which can provide 30% income tax relief on the investment. Whether this applies will depend on the specific structure of our share offer — we'll confirm this before any share issue.

This is an important question. Annual payments to shareholders are classed as interest for tax purposes, not dividends. This means:

• The society will issue an annual statement showing the interest paid, which you declare on your self-assessment (or notify HMRC if you don't normally file a return)
• Interest falls within your Personal Savings Allowance (£1,000 for basic rate taxpayers, £500 for higher rate) — so many investors in a project of this size would pay no tax at all
• Capital repayment (the gradual return of your original investment over ~20 years) is not taxable — it's your own money coming back
• If the share offer qualifies for SITR (Social Investment Tax Relief), you could receive 30% income tax relief on the investment upfront, significantly improving the effective return

We will confirm the exact tax position and whether SITR applies before any share offer is launched. The society will provide annual statements suitable for HMRC reporting.

• Moving away: You can remain a member and investor even if you move out of Skirwith. Alternatively, you can request withdrawal of your shares (subject to the lock-in period and board approval of withdrawal requests).
• On death: Shares form part of your estate. They can typically be transferred to a named beneficiary or withdrawn by executors. The society's rules will set out the specific process — this is standard in BenCom constitutions and will be detailed in the share offer document.

| System | Capital cost | Annual generation | Payback period | |--------|-------------|-------------------|----------------| | Ground-mount solar (100 kWp) | ~£100,000 | 102,674 kWh/yr | 10.6 years | | Roof-mount solar (101.5 kWp) | ~£121,800 | 88,432 kWh/yr | 13.8 years | | Combined | ~£222,000 | 191,106 kWh/yr | ~12 years |

After payback, the systems continue generating revenue for the community for another 15–20 years.

Battery storage is not included in the initial phase but is identified as a likely future addition (Phase 6 in the action plan). Battery costs have fallen significantly (~£500–800/kWh) and continue to drop. Adding storage would allow the project to store surplus daytime generation for use in the evening, improving self-consumption and revenue. The steering group will assess storage once the solar installation is operational and generating data on actual generation and export patterns.

A combination of:

• Government grants — the £1 billion Great British Energy Community Fund specifically supports projects like this
• Community shares — investment from residents and supporters (target ~£100–200k)
• Specialist loan — from community energy lenders such as Triodos Bank (up to 25-year terms)

The aim is to minimise risk by securing grant funding for early development costs before asking anyone to invest.

The project is designed to blend multiple funding sources so it does not depend entirely on village investment:

• Government grants (non-repayable) cover early development and can contribute to capital costs — the £1bn Great British Energy fund is specifically for this
• Community shares from residents and supporters (you don't have to live in Skirwith to invest — platforms like Ethex allow wider participation)
• Specialist loans from ethical lenders like Triodos Bank (secured against the asset, up to 25-year terms)

The project would not proceed to a share offer unless the business case demonstrates viability with realistic investment assumptions. If the share offer falls short of target, the board can extend the offer period, widen participation beyond the village, or scale the project to match available funds.

There is no scenario in which a commercial company with its own agenda takes control — the asset lock in the BenCom structure prevents this.

No. Participation in the community energy scheme is personal (linked to you as a member/investor), not attached to your property. There are no charges, covenants, or restrictions placed on your home. If you sell your property and move away, you simply decide whether to withdraw your shares or remain a member. A new owner would have no obligations whatsoever unless they choose to join the scheme themselves.

The feasibility study assessed wind generation but concluded it was less suitable because:

• Skirwith lies within a Conservation Area — significant visual impact and planning constraints
• Higher capital and maintenance costs compared to solar
• Solar offers a better balance of cost, planning feasibility, and community acceptance

The study also recommends a phased transition from oil heating to air source heat pumps, on a household-by-household basis. Five homes and the village hall already have heat pumps installed. The Boiler Upgrade Scheme offers £7,500 per household towards installation costs. This would be a separate, longer-term workstream.

Membership is per individual person, not per property. Each adult individual can join the society and gets one vote — so a couple in one household can both be members (and both vote). This is standard for Community Benefit Societies and aligns with co-operative principles.

In practice: if John and Christine both join, they each get a vote. If only one joins, only that person votes. Shares can be held individually or jointly — the share offer document will detail the options.

Non-resident property owners (e.g. second homes) can also become members.

No — smart meters are not a prerequisite for the project to go ahead. The answer depends on which supply model we use:

Model 1: Export to grid (simplest)

If we generate electricity and export it to the grid via a PPA or the Smart Export Guarantee, individual household meters are irrelevant. The generation meter is on the solar installation itself. Revenue flows to the society, and benefits are distributed via dividends and the Community Benefit Fund. This is how most UK community energy projects currently operate.

Model 2: Sleeved PPA (intermediate)

In a sleeved arrangement, a licensed supplier acts as intermediary — buying our output and selling it to local households at an agreed rate. Billing is handled by the licensed supplier using whatever meters you already have (including old credit meters). Smart meters help the supplier offer time-of-use matching but are not mandatory.

Model 3: Local Energy Market (most benefit — smart meters needed)

The most advanced model allows direct trading between our generator and local households at below-market rates. For this, half-hourly metering data is needed to match consumption with generation — which means smart meters (SMETS2) are required for participating households. This model is being enabled by BSC Modification P441, currently in development.

Summary

| Supply model | Smart meter needed? | Who handles billing? | |---|---|---| | Export to grid (SEG/PPA) | No | Grid operator / PPA buyer | | Sleeved PPA | Helpful, not required | Licensed supplier | | Local Energy Market | Yes (SMETS2) | Licensed supplier + cooperative |

What we recommend

We would likely start with Model 1 or 2 — no smart meter dependency, revenue flows from day one. As more homes get smart meters (suppliers must aim for 100% by 2030), we could transition to Model 3 for greater savings.

The mix of meter makes and models in the village doesn't matter — all SMETS2 meters communicate via the same national system (DCC) regardless of manufacturer.

Yes. If you have a smart meter with an In-Home Display (IHD), it will continue to work as normal regardless of which supply model the project uses. If you switch to a participating supplier under a sleeved PPA, the IHD updates to show your new tariff. If we move to Model 1 (export only) or you opt out entirely, nothing changes for your meter or display at all.

Nobody is obligated to participate, switch supplier, or change anything about their energy arrangement. The project works regardless of whether every household takes part.

The project's PPA (Power Purchase Agreement) is a contract between the Community Benefit Society and a licensed electricity buyer — individual households are not parties to it. Revenue flows whether power is consumed locally or exported to the grid.

How different choices work

| Scenario | What happens | Impact on project | |----------|-------------|-------------------| | Household wants nothing to do with it | They stay with their existing supplier, business as usual | None — project revenue comes from PPA/export | | Household wants cheaper local power | They choose to switch to the participating supplier (voluntary) | Slightly improves project economics | | Household is a BenCom member but not a power customer | They vote at AGMs and earn dividends but keep their own supplier | Perfectly fine |

The only "opt-in" decisions

All participation is voluntary:

1. Joining the BenCom as a member (free/nominal — gives you a vote and eligibility for dividends) 2. Investing in community shares (entirely optional, from as little as £50) 3. Switching supplier to receive the discounted local power rate (entirely optional)

You can do any combination of the above, or none at all. The project's financial viability does not depend on universal village participation.

In short

If one, two, or even half the village prefers to stay with their existing supplier, the project still works. Local consumption makes the economics slightly better, but it's a bonus — not a requirement.

Modern solar panels have a warranted productive life of 25–30 years and typically continue generating (at reduced efficiency) well beyond that. At end of life:

• The society's financial model includes a decommissioning reserve — a small annual allocation set aside to cover removal and disposal/recycling costs
• Solar panel recycling is well-established (panels are primarily glass, aluminium, and silicon — all recyclable)
• The board at the time will decide whether to repower (replace panels with newer, more efficient ones — likely to be very cheap by then) or decommission
• If decommissioning, the land is restored to its previous condition

This is planned for from day one — it won't come as a surprise cost in 30 years.

The following questions have been raised and will be resolved as the project develops. We will update this document as answers become available:

1. Exact supply model — Will power be exported to the grid and benefits distributed financially? Or will a private wire / sleeved arrangement deliver power direct to village properties? *(The feasibility study proposes a sleeved PPA model, but the final decision depends on grid connection terms, supplier negotiations, and community preference.)* 2. Grid acceptance and pricing — The Smart Export Guarantee requires all licensed suppliers to offer an export tariff, but rates vary (currently 3–6p/kWh). The exact rate will be confirmed during PPA negotiations. Grid capacity to accept export has been assessed as viable at nodes 730314 and 730310. 3. Who steps in if management fails? — Christine raises the Ripple Energy cautionary tale. The key difference: in a BenCom, the community itself owns and governs the asset (one-member-one-vote). There is no external management company that can "go bust" and leave you stranded. However, the project will need a clear succession plan and board renewal process. We will build this into the society's rules. 4. SITR / tax relief eligibility — To be confirmed with specialist legal advice before the share offer is prepared. 5. Detailed billing mechanics — How exactly residents receive discounted power, and how top-up power is billed when solar is insufficient, depends on the supply model chosen and the licensed supplier's systems. This will be fully documented before anyone is asked to switch.

1. Now — We're gathering views through the leaflet and this meeting 2. If there's support — We establish a Community Benefit Society (cost: ~£240) 3. Months 3–9 — Apply for grid connection, secure planning, develop the business case 4. Months 6–12 — Apply for grants and prepare a community share offer 5. Months 12–18 — Build and commission the solar installation 6. Year 2+ — Begin generating returns, establish the Community Benefit Fund

Nothing will proceed without broad community support.

A small steering group of Skirwith residents, supported by Westmorland & Furness Council (who commissioned the feasibility study). If the project proceeds, it would be governed by the whole community through the democratic BenCom structure — not by any individual or small group.

A copy is available from [contact name] — [phone] / [email]. We're happy to lend you a printed copy or send it electronically.

[Contact name] Phone: [number] Email: [email]

Or speak to any member of the steering group at the village meeting.