Good Energy Group Plc, a British renewable-power supplier, plans to raise 3.8 million pounds ($5.8 million) by selling shares to pay for the construction of 10 megawatts of solar park developments in the country.
The company will sell about 3.1 million shares at 125 pence each, Chippenham-based Good Energy said today in a statement. Power generated will be enough to supply about 2,300 homes.
Good Energy plans to install as much as 110 megawatts of solar and wind power by 2016 as the U.K. seeks to get 15 percent of its energy from renewable sources by 2020. Suppliers of sun and wind power currently receive premium payments for their electricity under the nation’s Renewable Obligation program.
Good Energy has spoken to potential lenders including Co-operative Bank Plc over raising debt after it gets consent for the projects and, assuming it wins approval for all of the projects, it will seek to sell some, according to the statement.
A solar project costs about 1 million pounds a megawatt, Good Energy said, with returns of about 9 percent to 12 percent.
Each project takes about 11 months from site selection through construction, compared with 44 months for wind, it said.