Record high prices
Unprecedented energy prices. That’s a phrase we’ve heard a lot and are likely to hear even more. April’s price cap is increasing by over 50% to £1971. It is looking likely that October’s price cap could be even higher. Rocketing bills are hitting consumers hard.
Owning a wind farm is an easy way to protect yourself from future wholesale electricity price rises. Your wind farm savings are the difference between the market price and your wind farm’s running costs. At its most basic, high prices mean higher savings.
We wrote a blog about why prices are going up so much. This was before the Russia-Ukraine war which has compounded the energy price crisis.
High prices = high savings for wind farm owners
When comparing Ripple savings to your current bill, it’s important to compare like for like. That means comparing what your savings would be with the current wholesale price that is driving your current bill.
If, and it’s a big if, prices stayed at the level assumed in the forthcoming energy price cap when Kirk Hill begins generating in 2024, your bill savings from your wind farm would be huge. Nearly 15p/kWh – that’s 3 times higher than is set out in our online quotes.
That would mean Kirk Hill members’ payback time would be just four years from when the wind farm starts generating, if they stayed at that level for four years. If prices remained at the level they’ve been at since late February your savings could be even higher and the payback even shorter. We’re not saying they will stay that high, let’s hope for everyone’s sake, they don’t.
Current prices – Feb-22: 20p/kWh, April -Sept ‘22 Price Cap: 14.6p/kWh.
Assumed in Ripple quote calculator – 2024: 8.3p/kWh, 2025: 5.8p/kWh
Wind farms are long-term purchases, so we’ve based our savings on the UK Government’s long-term electricity price forecast. The trouble is, they haven’t been updated since 2020, well before the current spate of high prices. As a result, our estimated savings are a lot lower than they would be compared to the level they would be if prices remained at their current level.
No one can totally predict what energy prices will look like in 6 months time, let alone 25 years. We use the Government’s forecasts for our pricing models because they’re thorough and trusted. We also want to be totally transparent about how we estimate your long-term savings so need to use a public source. However, if the current high prices continued, our Kirk Hill members would be set for very high savings and much, much faster payback time. Fantastic.
How do the bill savings work?
With Ripple, your energy supplier buys your electricity from your wind farm at its low and stable operating cost. The difference between this price and the volatile market price is passed onto your electricity bill, every month, for the 25-year lifespan of the wind farm. We estimate you should save about 23% on your electricity bill.
Watch this video to find out more about how the savings work.
