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Dear Member,

Summer grid shutdown and Ethex onboarding update.

Further to our last update on 13th July, this member newsletter summarises developments since then and responds to questions raised by members.

We are receiving a high volume of emails from members who are understandably concerned about the impact of the grid shut down. We do read all emails sent to us but are unable to respond individually to all of them. We do our best to address the questions raised in these newsletters.

The vast majority of emails we receive from members are constructive and raise sensible questions, suggestions and concerns that are of interest to all members. Most members recognise the shut down is not the fault of Derril Water Solar Co-op’s volunteer board and new managing agents. The grid shut down comes on top of the construction delay and Ripple going into administration.

We have provided a glossary of technical terms and the various electricity network operators involved at the bottom of the newsletter.

Headlines

-Derril Water Solar remains off-line due to an area-wide grid shut down.
-Active network management measures being introduced by the distribution network operator in August may allow partial export.
-Voltage compensation generators commissioned by the network operators are due to come online in September and will further reduce the constraint.
-The 4 month grid shut down through the summer generation period will have a significant impact on this year’s revenues. There will not be sufficient funds to make the planned member savings payments in August 2026 or February 2027.
-We are waiting on confirmation of the likely long-term grid curtailment to determine what the outlook is for bank loan affordability and member payments.
Response to questions raised by members

Have the network operators provided a formal explanation for why the solar farm has been shut down?

National Grid Electricity Distribution (NGED) have confirmed the distribution and transmission network operators have been aware of potential voltage issues on the North Devon network since 2023. The risk of voltage issues has increased as Langage gas power station, which was being used to control volage levels, is off-line for maintenance for 2 years.

To mitigate this, the National Energy System Operator (NESO) commissioned a voltage compensation generator at Taunton and a refurbished generator at Exeter which were due to be installed by the end of 2025. However, implementation of these generators was delayed and they are now due to complete in September 2026. NGED have confirmed the works are currently on track but tests will still be required once they are commissioned

NESO became concerned about imminent voltage rise risk on the transmission network in May this year. Until the delayed voltage compensation generators are installed and tested, the only solution available to NESO to control voltage levels was to instruct National Grid Electricity Transmission (NGET) to switch off a super grid transformer (SGT) at Alverdiscott near Barnstaple.

With the SGT at Alverdiscott switched off, the local 132kV distribution network has reduced capacity and security and is vulnerable to thermal overload. To manage this risk and ensure safe operation of the distribution network, NGED have curtailed a number of generators connected to the 132kV ‘K-line’ between Alverdiscott and Indian Queens in Cornwall, including Derril Water Solar to 0kW export.

NGED were given no warning of the shut down. NGED then shut down Derril Water Solar and other generators on the K-line with no warning.

A planned Active Network Management (ANM) scheme would mean generators could be controlled on a real-time rather than shut down entirely. NGED recently informed us that the ANM system is now ready to deploy and may allow Derril Water Solar to begin partial export in August. Even with the ANM scheme live, high levels of curtailment are expected.

What is impact of the shut down on 2026 member payments?

The 4 month grid shut down through the summer generation period will have a significant impact on this year’s revenues. There will not be sufficient funds to make the planned member savings payments in August 2026 or February 2027.

What is the impact of the shut down and any ongoing constraints on future member payments?

We are awaiting feedback from NGED on the estimated ongoing grid curtailment that Derril Water Solar will experience once the ANM and voltage compensation generators are in place and the network is operating at full capacity. Once we have this, we will commission a specialist to produce an updated export forecast for Derril Water Solar Farm which will provide the basis for revised projections for bank loan affordability and member payments.

What is the status of discussions with Virgin Money, who provided a £20 million senior loan to Derril Water Solar Ltd

We are holding fortnightly calls with Virgin Money to keep them updated. We are looking at revised payment schedules to accommodate the reduced revenue this year.

Virgin Money are awaiting clarification of the impact of the shut down on this year’s finances, and ongoing curtailment levels, to inform updated financial projections including loan affordability.

Are the network operators looking into technical mitigation options?

NGED have investigated a range of technical mitigation options with NGET and NESO, including ANM, reactive compensation measures and review of grid risk tolerances. Distribution network ANM is expected to start coming online on a site-by-site basis in August and reactive compensation measures are expected to be completed in early September. The review of grid supply point risk tolerances is ongoing and results on this are awaited from NGED following completion of a trial.

Technical mitigation options at a site level were considered but could not offer a viable solution.

How wide is the problem. Are other solar and wind farms affected?

All generators on the 132kV line running between Alverdiscott in North Devon and Indian Queens in North Cornwall have been shut down.

Does Derril Water Solar’s insurance cover the grid shut down?

Derril Water Solar’s insurance brokers have provided formal confirmation that our business interruption insurance does not cover us for the grid shut down. This is standard practice in the renewables industry.

Derril Water Solar does have business interruption insurance for downtime caused by damage to the solar farm (e.g. lightning strike to the transformer or wind damage). Electricity network outages are not typically covered by solar farm business interruption insurance. Derril Water Solar has limited cover for network outages caused by unexpected damage to the network (capped at £150,000). However, the shut down is not caused by damage to the network so this limited cover does not apply.

Could Derril Water Solar be due compensation for the shut down?

We have sought informal legal advice from a solicitor specialising in renewable energy connections. Their opinion was that, even if there was a failure of duty by the network operators to manage the network properly and communicate with its customers, the recourse is an Ofgem complaint and a fine which would be paid into the national Redress fund, not to Derril Water Solar directly.

What steps has Derril Water Solar taken to escalate the issue

Derril Water Solar established communication with senior staff at NGED shortly after the shut down came into effect. NGED have assigned a senior manager to be the lead contact. We have continued to exchange emails and hold meetings with NGED and NGET regarding the issue including background, causes, mitigation and technical solutions and the longer-term outlook. We have also requested NGED bring NESO into the conversation. We have written to the Minister of State in the Department for Energy Security and Net Zero and local MPs and have engaged with the press including a detailed article by the Guardian on the shut down.

We will consider whether there is grounds for a formal complaint to Ofgem and what, if anything, this might achieve. If the complaint resulted in a fine to the network operators, the fine would be paid into the national Redress fuel poverty fund, not to Derril Water Solar directly.

Can I sell my shares in Derril Water?

At the moment there are no funds available for Derril Water Co-op to buy back member shares.

Shares in a co-op such as Derril Water Co-op are withdrawable (subject to director discretion and available funds) but cannot be transferred.

Where a co-op has list of members who wish to withdraw their shares and members who wish to buy more shares, it can facilitate the buy-back of shares to members wishing to withdraw and issue of new shares to members who wish to buy more. Derril Water Co-op may consider setting up such a register in future if and when the co-op’s finances are stable.

Given the uncertainty surrounding the financial position, we are not currently treating this as a priority and we will inform you if, or indeed when, we are in a position to offer buying or selling options for members.

Glossary

Active Network Management (ANM): a system used by UK electricity network operators to automatically limit or adjust the output of renewable generators, such as solar farms, when parts of the local electricity network are at risk of exceeding their operating limits.

NESO (National Energy System Operator): operates Great Britain’s electricity system, balancing supply and demand in real time and coordinating planned outages to keep the national grid secure and reliable. NESO is also responsible for strategic network planning.

National Grid Electricity Transmission (NGET): owns, operates and maintains the high-voltage transmission network in England and Wales, including super grid transformers that connect the transmission and distribution networks. The transmission network is the large pylons running at 400 kV and 275 kV (and 132 kV in some areas) that move power around the country.

National Grid Electricity Distribution, formerly Western Power Distribution (NGED): owns and operates the lower-voltage South West regional electricity distribution network. The distribution network is the 132kV lines which distribute power from the transmission bulk supply points around regions and the wooden poles running at 33kV and 11kV that move power from the 132kV sub-stations to local consumers, and local generation back up into the transmission network.

Super Grid Transformer (SGT): is a large, high-voltage transformer at a grid bulk supply point that converts electricity from the national transmission network (typically 400 kV) down to the lower voltages used by the regional distribution network (typically 132 kV).

Member onboarding with Ethex

Ethex has reached Stage 3 of the four-stage process and is now waiting on the results of the KYC (Know Your Client) checks, which is a standard regulatory step required before accounts can be opened on the platform. Once these results are in, Ethex will begin the secure upload process and move to Stage 4, the final stage: setting up your Ethex account and matching your Derril Water shares to it. We expect Stage 4 to get underway early August. Some members will not have passed KYC at the first attempt. This is not a cause for concern but typically means that further information will be requested. Ethex will be in touch with those members directly. In the meantime, you can follow progress on your account activation via this live onboarding tracker: ethex.org.uk/derril-water-onboarding-update

If you have any queries, please get in touch, The [email protected] inbox remains open.

All the best,
Derril Water Solar Co-op Board

Dear Member,

Following our last communication on May 26, we’re writing to update you on the Derril Water export curtailment.

Around three weeks ago, we were informed, without any notice, that our solar park has been required to stop exporting electricity to the grid until September 2026.

This instruction has come from the electricity network operators due to technical issues at a piece of infrastructure known as the Alverdiscott Supergrid Transformer, located around 20 miles from our solar park. Work being carried out there has led to wider grid stability concerns, meaning several generators in North Devon, including Derril Water, have been curtailed for the summer. The shut down is due to issues with the transmission network not our solar farm and is outside of our control, and the shut down is within the network operators’ rights to ensure a safe and reliable system.

What does this mean for Derril Water?
The timing of this outage is particularly challenging, as it affects the peak summer generation period in our first year of generation, on top of the construction delay. Based on current expectations, this could result in a loss of approximately £2 million in revenue.

As members will know, the co-operative was financed through a combination of £22 million of member investment and a £20 million long-term bank loan. The interruption creates unexpected financial pressure and will impact our ability to pay members at least in the near-term.

What are we doing about it?
Your Board of volunteer Directors is doing what it can to protect the co-operative’s interests. We are:

-Engaging directly with the relevant network operators (National Grid Transmission and Distribution) to seek clarity on the cause of the shut down and ensure they are doing what they can to mitigate the impact
-Exploring all available options to mitigate the financial impact
-Raising the issue with Government, including writing to the Minister for Energy Security and Net Zero, the Constituency MP and other stakeholders
-While we fully recognise the importance of maintaining a safe and stable electricity system, we are pressing all parties to ensure that the burden of this situation is handled fairly, transparently, and with the urgency it deserves.

What happens next?
At present, we have been advised that the outage is expected to last until 6 September 2026. We will continue to push for updates and will inform members promptly if anything changes.

We understand this news is concerning, particularly so soon after the completion of the solar park. However, it’s important to emphasise that this is an external issue affecting the grid, not a problem with the solar farm itself.

We remain committed to the long-term success of Derril Water Solar Co-op and to delivering the energy savings, environmental and community benefits that members invested in. We will continue to act in the best interests of the co-operative and keep you fully informed with regular updates. If you have been in touch with us by email, please bear with us as we navigate the current situation.

We are in dialogue with the network operators and will write to you again in the coming weeks with further updates.

Thank you for your continued support and patience.

Yours sincerely,

The Board of Directors
Derril Water Solar Co-operative

Dear Member,

Following our last communication on May 26, we’re writing to update you on the Derril Water export curtailment.

Around three weeks ago, we were informed, without any notice, that our solar park has been required to stop exporting electricity to the grid until September 2026.

This instruction has come from the electricity network operators due to technical issues at a piece of infrastructure known as the Alverdiscott Supergrid Transformer, located around 20 miles from our solar park. Work being carried out there has led to wider grid stability concerns, meaning several generators in North Devon, including Derril Water, have been curtailed for the summer. The shut down is due to issues with the transmission network not our solar farm and is outside of our control, and the shut down is within the network operators’ rights to ensure a safe and reliable system.

What does this mean for Derril Water?
The timing of this outage is particularly challenging, as it affects the peak summer generation period in our first year of generation, on top of the construction delay. Based on current expectations, this could result in a loss of approximately £2 million in revenue.

As members will know, the co-operative was financed through a combination of £22 million of member investment and a £20 million long-term bank loan. The interruption creates unexpected financial pressure and will impact our ability to pay members at least in the near-term.

What are we doing about it?
Your Board of volunteer Directors is doing what it can to protect the co-operative’s interests. We are:

-Engaging directly with the relevant network operators (National Grid Transmission and Distribution) to seek clarity on the cause of the shut down and ensure they are doing what they can to mitigate the impact
-Exploring all available options to mitigate the financial impact
-Raising the issue with Government, including writing to the Minister for Energy Security and Net Zero, the Constituency MP and other stakeholders

While we fully recognise the importance of maintaining a safe and stable electricity system, we are pressing all parties to ensure that the burden of this situation is handled fairly, transparently, and with the urgency it deserves.

What happens next?
At present, we have been advised that the outage is expected to last until 6 September 2026. We will continue to push for updates and will inform members promptly if anything changes.

We understand this news is concerning, particularly so soon after the completion of the solar park. However, it’s important to emphasise that this is an external issue affecting the grid, not a problem with the solar farm itself.

We remain committed to the long-term success of Derril Water Solar Co-op and to delivering the energy savings, environmental and community benefits that members invested in. We will continue to act in the best interests of the co-operative and keep you fully informed with regular updates. If you have been in touch with us by email, please bear with us as we navigate the current situation.

We are in dialogue with the network operators and will write to you again in the coming weeks with further updates.

Thank you for your continued support and patience.

Yours sincerely,

The Board of Directors
Derril Water Solar Co-operative

Dear Member,

We are writing to inform you of an unexpected electricity grid issue that requires Derril Water Solar Park and other renewable generators in North Devon to shut down.

We have been notified by the electricity Distribution Network Operator that they are constraining Derril Water Solar Park and other generators in North Devon to prevent potential network overloads. The problem has been triggered by works being carried out at the Transmission Network sub-station at Alverdiscott near Barnstaple. The constraint is unexpected and has been enforced on our solar park and other generators in North Devon with no warning.

The information we have so far from the Network Operators is the curtailment may remain in place through the summer until early September. As this is our first summer of generation, the timing could not be worse. Our technical manager, RES, is actively investigating the issue and engaging with the Network Operators to better understand the root cause and explore whether the duration or impact of the curtailment can be reduced. We are also reviewing whether the company’s operational insurance policies may provide coverage for some of the losses incurred as a result of this interruption. However, network outages are not normally covered by insurance.

We appreciate this news is concerning and assure you that we are treating this as a priority of the utmost importance. We will continue to keep members updated as we learn more.

In summary,

What has happened?

An unexpected issue at the transmission sub-station in Alverdiscott (near Barnstaple) has increased the risk of the distribution network in North Devon being overloaded. To manage the network overload risk the electricity Distribution Network Operator (NGED) is required to constrain generation in the area. Derril Water Solar Park and other generators have been curtailed to zero export. NGED has a right and duty to do this. There is no fault with the solar park.

We do not yet have sufficient information from the Network Operators to understand the cause of the problem. However, NGED has a duty and right to constrain generation to manage network overload risk.

What are we doing about it?

The shut down is unexpected, outside of our control and nothing to do with the Solar Park which would otherwise be generating normally through the summer. Our technical manager RES is engaging with the Network Operators to better understand the cause and explore whether the duration or impact of the curtailment can be reduced. We are also reviewing whether the company’s operational insurance policies may provide coverage for losses incurred as a result of this interruption. However, network outages are not normally covered by insurance. We will keep members informed as we know more.

What does this mean for my energy savings payments?

The curtailment of the Solar Park at the beginning of our first summer of generation could not be worse timing and will substantially impact the amount of revenue generated this year. Once we understand more about the constraint and mitigation options, we will update the projections presented at the AGM, including implications for member energy savings payments.

While the Derril Water Board appreciate this is bad news, it is important to stress that the curtailment of the solar farm is essential, and that the aforementioned issues are not related to the construction of the solar farm itself.

If you have further questions, please get in touch with us via this email ([email protected]). Although we are unable to reply to every email, we will be issuing more communications in the coming weeks addressing questions from members.

All the best,
Derril Water Solar Co-op Board

Dear Member Thank you to everyone who virtually attended the AGM on Monday. If you were unable to attend you can watch the full meeting here.

As the meeting ran for two hours, we have written a summary of the meeting below.

Key Takeaways

The solar farm is now operational although some snagging items remain

Members voted in favour of the appointment of five new Board members, with thanks offered to the departing members

Construction delays have impacted finances and delayed income

Ongoing discussions with contractor Ethical Power around compensation for delays is central to near-term financial outcomes

Member payments may begin this year, but are not guaranteed owing to the outcome of a delayed damages claim

A revised long term business plan has been created based on the current status of the business, with revised projections for member returns

New management (Communities for Renewables) and member registrar (Ethex) are in place
Focus is on stabilising operations and delivering long-term value to members

The Annual General Meeting of Derril Water Solar Co-op provided members with a comprehensive update on what has been a challenging but ultimately progressive period for the project.

Chair Ben Reade opened the meeting by thanking outgoing Board members John Rudd, Simon Evans, Alessandro Gervasio and Rebecca Williams for their commitment and contributions during a difficult phase. Thanks were also extended to Simon Peltenburg, whose project development expertise has strengthened the Board.

A significant transition for the co-op has been the appointment of Communities for Renewables (CfR) as the new management partner following the withdrawal of Ripple Energy.

Project Status: Operational Milestone Reached

The project is now approaching provisional acceptance, a key contractual milestone beginning the formal handover of the solar farm from the construction contractor to Derril Water Solar Limited. The handover process includes a two year warranty period where performance is guaranteed and any defects are corrected.

However, this progress follows significant construction delays, which have had a knock-on impact on project finances and timelines.

Contractor Dispute

The delays have led to ongoing discussions with the contractor, Ethical Power. Under the construction contract, delays may result in financial compensation (liquidated damages), unless they are deemed excusable.

Ethical Power argues that some delays fall outside their responsibility, while the co-op – supported by legal and technical advisers – maintains that most are not excusable. This dispute is now in a formal process and may proceed to arbitration if necessary.

Outstanding site works, including drainage, ecological measures, road resurfacing and acoustic testing, must also be completed before final completion can be achieved. A portion of the contract value remains unpaid, providing leverage to ensure these obligations are met.

Financial Position

Members were reminded that £22.4 million was invested into the co-op, alongside a £20.2 million loan from Virgin Money.

Due to construction delays:

-Revenue started later than expected
-Additional interest costs were incurred during the extended build period
-Therefore cash reserves are lower than originally forecast
-Despite this, the project remains fully financed and is now generating income. Operating costs are broadly in line with expectations, and financial protections, such as potential delay damages, help mitigate the impact of delays.

The loan includes standard project finance covenants, meaning member payments can only be made if financial thresholds are met.

Derril Water Solar Limited is in discussion with Virgin Money around the restructuring of its loan to better reflect the projected revenues in the revised business plan.

Member Payments and Projections

Member savings payments are scheduled twice yearly, following financial covenant testing in January and July. The first payment could be made in August, although this is not guaranteed and will be subject to the outcome of the delay damages dispute, and the Virgin loan restructuring.

Two scenarios were presented:

Low scenario: No damages recovered and conservative generation → no payments this year
High scenario: Damages offset remaining construction costs and average generation → around £500,000 available (approx. £67 per £3,000 invested)
Long-term projections suggest lower returns than originally forecast in the share offer. This reflects construction delays, more conservative electricity price assumptions, and a prudent financial approach.

Importantly, the core model remains unchanged: returns depend on electricity generation and market prices.

Ethex Platform

Ethex has been appointed to manage the member register and payment system. Members will be onboarded via email and given access to a secure online account where they can:

-View their investments and balances
-Receive payments into a digital wallet
-Withdraw funds to their bank account
-Access statements and communications
-This system replaces the previous supplier-linked approach and aims to improve transparency and control for members.

Governance and AGM Business

The AGM also covered formal matters, including the election of five new Board directors from ten shortlisted candidates, and the proposed appointment of Griffin Chartered Accountants as auditors.

The co-op structure ensures that members retain democratic control, with directors elected from the membership and responsible for strategic oversight.

Looking Ahead

The Board and CfR emphasised that the priority now is to resolve the contractor dispute, complete outstanding works, and stabilise the project both operationally and financially.

Formal membership votes

Two votes were put to the membership with both having a clear result. The exact vote results in numbers are below.

The membership approved the appointment of Griffin Chartered Accountants for the financial year ending June 2026.
RESULT

YES: 238 votes (98%)

NO: 3 votes (1%)

2. To approve the appointment of the following Board members

Naresh Mohindra, Callum Dell, Adam Velente, David Woodhead, Shaun Lee

RESULT

YES: 220 votes (97%)

NO: 6 votes (2%)

All the best,
Derril Water Solar Co-op Board

Dear Member,

Notice is hereby given that the Annual General Meeting of the Members (Meeting) of Derril Water Solar Coop Limited (the Society) is to be held online via Vimeo web conferencing on Monday 20 April at 6pm.

Please register via the link below. Attendance will be recorded and only Derril Water Solar Co-op members will be eligible to attend and vote. A meeting agenda can be found below.
https://vimeo.com/event/5801876

The agenda for the AGM will include:

To report on the commissioning status and operational performance of the solar farm;
To report on the status of contractual negotiations with the construction contractor;
To report on the finance structure of the group, including the loan from Virgin Money;
Presentation of the statutory annual accounts for the year ending 30th June 2025;
To report on timing and process of transferring the member register to Ethex ahead of the first member savings payment being made;
To report on the planned timing of member savings payment and process going forward;
Resolutions and proposals: 1. Election and re-election of board members in accordance with the Society’s rules. 2. Appointment of auditors in accordance with the Society’s rules;
AOB

We encourage members to attend and look forward to seeing you.

Point of clarification:

Following last week’s email to members, we would like to clarify that the Board anticipate the first member payment in late summer, financial position permitting. Our last email left some members under the impression this had been delayed until 2027, which is not the case. While we do read all the member emails we are sent, we will occasionally send emails to all members on specific points, if we feel this is faster than individual replies.

Interested in joining our volunteer board?

Following some recent resignations we are looking for some new Directors to join the Derril Water board. We’d be specifically looking for people with experience in finance and/or supplier management where possible.

If you wish to be considered for election please compose a brief personal statement – circa 300 words – telling us a little about you and your relevant experience and submit this to [email protected] by 10th April.

Authorised by the Derril Water Solar Coop Limited board
Derril Water Solar Coop Limited (Registration Number: 4963)

All the best,
Derril Water Solar Co-op Board

Dear member,

Welcome to your quarterly Derril Water member newsletter. The following update covers:

Construction update
Transition to Ethex
Derril Water Communications
Upcoming AGM date
Unresolved queries
Construction and operations update

As reported in our last newsletter, the solar farm successfully reached 100% export capacity in mid-December following the completion and passing of vital grid input tests. This marks a significant milestone for the project.

The site is now operating as planned. While final construction checks and snagging works remain ongoing, the core infrastructure is fully operational and exporting at full capacity. The construction contract included a delay damages clause. We are seeking delay damages from the contractor and have legal support. We will provide an update at the AGM and will report the outcome of the negotiations to members when we can.

Transition to Ethex

As explained in our December newsletter we will shortly be transferring to our new member registrar Ethex. Please look out for communications regarding this.

The process will start with an email from Ethex to Derril Water members which will contain important information about accessing your member dashboard and ensuring you are set up to receive future communications and payments. As these emails will be issued directly from Ethex, we kindly ask members to check spam or junk folders if you do not see the onboarding email in your main inbox. We will email you again directly a few days before Ethex contacts you.

Communications

As most of you will be aware, we sent member communications in December, including a member FAQs. If you are reading this but did not receive those communications, please check your spam folder and mark communications from us as ‘not spam’ .

We have included our December FAQs below. If you have any further question or need to change any personal details such as email or address, please contact us via this inbox.

Please note that in order to ensure a smooth transition to Ethex, we have temporarily paused registrations to register your login on the current Derril Water website.

Upcoming AGM

We apologise for the delay of the AGM, which was due to the time it has taken to complete the audit process. We will be hosting an online AGM at 6pm on Monday April 20th. You will receive an invitation to attend virtually by email in due course. We will also share a meeting agenda with you in advance, and give members the opportunity to stand for election to the volunteer board.

Unresolved queries

Whilst we appreciate that queries sent during this transition period may not have been replied to, if you have any questions that have not been covered by this update, please contact us by sending your outstanding query to [email protected]

Our FAQs sent in December can be found below.

All the best,
Derril Water Solar Co-op Board

December FAQs

Q.1 When am I receiving my first payment?

At this stage we are not yet able to confirm an exact date for the first member payment. As outlined in our recent update, the solar farm has only just completed full export capability, and the delay to summer generation has affected initial revenues. In addition, we are currently transitioning to a new member payment system, with payments to be made via our new member registrar, Ethex, once onboarding is complete early next year.

Under the new payment model, and subject to available funds, member savings payments are intended to be made twice yearly: an initial payment in August, based on management accounts, and a second payment in December, based on audited accounts.

We appreciate your patience during this transition period and will continue to keep members updated through our quarterly newsletters and AGM communications.

Q2. Have I lost my investment?

No. Your shareholding is in Derril Water Solar Co-op not Ripple Energy (which went into administration earlier this year). The changes relate only to how member savings payments are administered and paid, not to members’ ownership or capital.

Under the Ripple Energy model, member savings were to be paid via a partner electricity supplier. As explained in our recent update, that approach is no longer possible, so we are moving to a new model where member savings payments are made directly to members via our new member registrar, Ethex. The basis of the member savings payment remains the same. We are just changing how the payment is made.

Once onboarding with Ethex is complete early next year, you will receive instructions on how to set up your Ethex account. Through that account you will be able to:

view your shareholding,
download your share certificate and tax statements, and
choose where your member savings payments are sent (for example, to your bank account).
Q3. Transfer of shares to spouse or family member?

As set out in the share offer, Derril Water Solar Co-op shares are “withdrawable” but not transferable. This means you cannot sell your shares directly to someone else, but the co-operative can buy them back from you (subject to available funds). If you die your shares can, however, be transferred to someone else.

We are in the process of appointing Ethex as our new member registrar. Applications for withdrawal and probate transfers will be handled through the Ethex platform once onboarding is complete early next year. At that point, you will be able to initiate a withdrawal or probate request through your Ethex member account, and Ethex will guide you through the required steps.

The sale of shares/buy back by the board is only by exceptional circumstances in the first 2 years, and then subject to available funds thereafter.

Q4. A shareholder has passed away

If you are a family member or next-of-kin of a shareholder who has sadly passed away, please contact us if you have not already done so. If you have already informed us of the person’s death, and/or sent us documentation, Ethex will contact you once the onboarding is complete early next year.

Q5. I already have an Ethex account, do I need a different set of instructions?

Once Derril Water Solar Co-op has completed onboarding with Ethex, your membership and shareholding will be linked to your existing Ethex account using the email address we hold on record for you. You will receive an email from Ethex confirming when this has been done and explaining any next steps, if required.

All the best,
Derril Water Solar Co-op Board

Dear member,

Thank you to everyone who has been in touch following our recent update. We appreciate your patience while we work through a very high volume of queries. We have read all the emails sent to us but given the large membership (Over 9,000 people) we cannot reply to queries on an individual basis.

As such, to provide clarity as quickly as possible before Christmas, we have summarised below the answers to some of the most frequently asked questions we have received.

We hope this helps address common queries and provides reassurance during this period of transition.

Q.1   When am I receiving my first payment?

At this stage we are not yet able to confirm an exact date for the first member payment. As outlined in our recent update, the solar farm has only just completed commissioning, and the delay to summer generation has affected initial revenues. In addition, we are currently transitioning to a new member payment system, with payments to be made via our new member registrar, Ethex, once onboarding is complete early next year.

Under the new payment model, and subject to available funds, member savings payments are intended to be made twice yearly: an initial payment in August, based on management accounts, and a second payment in December, based on audited accounts.

We appreciate your patience during this transition period and will continue to keep members updated through our quarterly newsletters and AGM communications.

Q2.     Have I lost my investment?

No. Your shareholding is in Derril Water Solar Co-op not Ripple Energy (which went into administration earlier this year). The changes relate only to how member savings payments are administered and paid, not to members’ ownership or capital.

Under the Ripple Energy model, member savings were to be paid via a partner electricity supplier. As explained in our recent update, that approach is no longer possible, so we are moving to a new model where member savings payments are made directly to members via our new member registrar, Ethex. The basis of the member savings payment remains the same. We are just changing how the payment is made.

Once onboarding with Ethex is complete early next year, you will receive instructions on how to set up your Ethex account. Through that account you will be able to:

• view your shareholding,
• download your share certificate and tax statements, and
• choose where your member savings payments are sent (for example, to your bank account).

Q3.     Transfer of shares to spouse or family member?

As set out in the share offer, Derril Water Solar Co-op shares are “withdrawable” but not transferable. This means you cannot sell your shares directly to someone else, but the co-operative can buy them back from you (subject to available funds). If you die your shares can, however, be transferred to someone else.

We are in the process of appointing Ethex as our new member registrar. Applications for withdrawal and probate transfers will be handled through the Ethex platform once onboarding is complete early next year. At that point, you will be able to initiate a withdrawal or probate request through your Ethex member account, and Ethex will guide you through the required steps.

The sale of shares/buy back by the board is only by exceptional circumstances in the first 2 years, and then subject to available funds thereafter. 

Q4. A shareholder has passed away

If you are a family member or next-of-kin of a shareholder who has sadly passed away, please contact us if you have not already done so. If you have already informed us of the person’s death, and/or sent us documentation, Ethex will contact you once the onboarding is complete early next year.

Q5.  I already have an Ethex account, do I need a different set of instructions?

Once Derril Water Solar Co-op has completed onboarding with Ethex, your membership and shareholding will be linked to your existing Ethex account using the email address we hold on record for you. You will receive an email from Ethex confirming when this has been done and explaining any next steps, if required.

All the best,
Derril Water Solar Co-op Board

Dear member,

As we near the end of 2025, which has been a roller-coaster of a year, we are writing to update you on how things are going with Derril Water Solar farm and our co-operative.

This newsletter covers:

• Construction progress update
• Upcoming AGM
• Transition to new member payment model
• Transition to our new management services provider and member registrar
• Change of address

Construction progress update

The solar farm is largely complete and the commissioning tests required to lift the constraint on export to the grid were finally completed on a sunny day last week. Commissioning was originally due to complete in the early summer and the lost summer generation has of course had an impact. 

The Co-op board are seeking legal advice on delay damages due under the construction contract. Given the complexity of such cases, we anticipate this could be a lengthy process.

Our construction contract manager RES continue to oversee the construction contractor Ethical Power. Weekly calls are held to monitor progress against milestones and completion of outstanding works.

AGM

Our auditors PKF Francis Clark are still working on the audit for the year ending June 2025 so the AGM will be delayed until early next year. The AGM will be held online and the notice, agenda and accounts will be sent out at least 2 weeks ahead.

If you would like to get involved in governance of Derril Water Solar Co-op we would welcome nominations for new directors to stand for election at the AGM. Please use the holiday period to consider this. We will include more details with the AGM notification.

Transition to new member payment model

At our EGM in August the volunteer board explained we will need to change the way energy savings payments are made to members. The model set up by Ripple of paying members via a partner energy supplier is no longer possible. Instead, energy savings payments will be made direct to members via our new member registrar Ethex (see below).

The new member payment model will be:

• Savings payments will be made via the Ethex platform rather than a partner energy supplier.
• As described in the share offer and subject to available funds, members will continue to be paid 3% of their capital each year with an energy savings payment based on the difference between the price at which the solar farm sells power to the grid and the solar farm’s cost of generation (including solar farm operating costs, group companies’ admin costs, loan finance costs, and reserves).
• Payments will be made 2x per year rather than monthly. Subject to available funds, the intention is to make a payment in August based on the management accounts. This will be a repayment of 1.5% of member capital. The remaining payment will be made in December based on the audited accounts. This will be a payment of a further 1.5% of member capital plus the rest of the energy savings payment.

The board does not consider that the co-op’s trading relationship with its members will be affected by the change for two reasons:

1. The co-op’s trading relationship with its members, which was approved by the Financial Conduct Authority (FCA), is based on members owning a share of the solar farm that would generate no greater than 120% of their annual electricity consumption. That cap remains in place.

2. Payments to members remain member savings as described in the offer, they are just paid to members by a different method. The co-op will continue to sell its power to a domestic electricity supplier.

However, members should be aware that the Co-op’s trading relationship with its members may be subject to future review by the FCA.

The tax treatment of the energy savings payments will remain the same under the new model. Member savings to be paid via a partner energy supplier were treated as a combination of capital and share interest payments for tax purposes. The share interest element of the member savings payment is taxable. Members will be able to download a tax statement from their Ethex platform account. Members should seek their own tax advice if they are not sure.

Transition to our new management services provider and member registrar

Our new management services provider Communities for Renewables CIC (CfR) has started their onboarding process and will be taking over the administration of the Co-op and our subsidiary company over the coming weeks. CfR’s role includes financial administration, supporting the volunteer board of directors, supporting member communications and managing our loan agreement with Virgin Money.

RES (who have overseen the construction of the solar farm by Ethical Power) will be our asset manager responsible for overseeing operation of the solar farm including performance reporting and managing the maintenance contractors.

Ethex will shortly be appointed as our member registrar. Ethex is a direct impact investing platform that helps individuals invest in organisations building a fairer, greener future. Since 2013, it has helped over 29,000 people invest in community energy, social housing, ethical finance and more, and has raised over £130million to date.

Ethex’s member relations and registry service provides organisations such as Derril Water Co-op with a secure online member dashboard. As a Derril Water Co-op member, your Ethex dashboard will allow you to:

• Upload and update your personal details
• Download share certificates and tax statements
• See member alerts from Derril Water Co-op
• Choose where your member savings payments are sent (i.e. to your bank account or Ethex wallet)
• Tailor your communication preferences – including opting in to hear about other impactful investments through Ethex

Once we have completed the onboarding process with Ethex we will send members an email with instructions on how to set up their Ethex account. This will not be until early next year. You do not need to do anything in the meantime.

Communication from us

Looking ahead, we will be publishing a newsletter every quarter, which will be sent to you by email. These newsletters will be sent around one week after each board meeting is held and will include board updates, updates on the performance of the solar farm, member matters and general news from Derril Water.

Unresolved queries

Whilst we appreciate that queries sent during this transition period may not have been replied to, if you have any questions that have not been covered by this update, please contact us by sending your outstanding query to [email protected]

Change of address

Given that Communities for Renewables will be managing us going forward, we will be changing our registered address from 85 Great Portland Street, first floor, London, W1W 7LT to  c/o CfR CIC, Redruth House, Cornwall Business Park West, Redruth, Cornwall TR16 5EZ.

[email protected]

We wish you a pleasant Christmas and New Year.

All the best,
Derril Water Solar Co-op Board

Dear Member,

Site Update

Further to the last update sent in September, the team continue to work hard to lift the 20% export limitation affecting the site. Following some questions from members, we’d like to clarify this 20% export limitation is 20% of the total site capacity, opposed to 20% of generation at any given time. Due to the time of year, we expect this will have had a minor impact on our generation revenues.

The damage caused to MVS2 (Medium Voltage Station 2) has now been repaired by the manufacturer and we would like to provide the reassurance that this repair has not impacted any warranty for the MVS unit, nor did it require any additional payment by the Co-op. Subsequently, we’re now waiting for Ethical Power to book a G100 retest. Once passed, this will enable us to have the export limitation lifted and the site will become fully operational.

You can expect to receive the next update once this test has been completed and we know the outcome. As the test is currently not booked and it is dictated by the availability of NGED engineers, we’re unable to provide any indication at this point as to when it will occur, only that we’ll continue to press the issue on your behalf with Ethical Power until the test has been completed.

Board Minutes

Copies of the minutes from the Co-op board meetings held on 25th September 2025 and 30th October 2025 are now both available within the members section of the Derril Water website. There are sometimes additional details or pieces of information contained within the minutes which are not covered in the higher level updates.

Site Data

Progress has continued to be made towards the access to the SCADA (Supervisory Control and Data Acquisition) data and whilst it will take some additional time and work for us to begin sharing live feeds with you via our website, we’re pleased to share a snapshot of todays generation below. The site hit a peak output of 6,300,000W at 13:30pm today.

Coming Up…

In a future update, we’ll be providing you with a more detailed update concerning the onboarding of our new Managed Services Partner, Communities for Renewables and the upcoming Director elections and December AGM.

All the best,
Derril Water Solar Co-op Board