20 OR 25 YEAR RENEWABLE ENERGY INVESTMENT OPPORTUNITY
www.alternativemarkets.co.uk
SOLAR PROJECTS ARE FLOURISHING ACROSS THE UK
Alternative Markets
Investment Overview Market Trend For Solar Project Partners Risk Assessment FAQ References
2 5 7 11 13 15
20 or 25 year investment, predictable 7-9 % p.a returns
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Guaranteed quarterly payments direct from Good Energy & E.on
INVESTMENT OVERVIEW 20 OR 25 YEAR RENEWABLE ENERGY INVESTMENT Solar projects are flourishing across the UK. Driven by Government backed Feed in Tariff schemes, and the global drive for clean, renewable energy sources. Alternative Markets offer established fully managed Solar Initiatives with predictable 7 - 9%* p.a returns paid quarterly direct from a major UK energy supplier. Index linked for up to 25 years, a projected total return of over 200%. Alternative Markets offer a flexible way to make a large or small, low risk investment in renewable energy, as a one-off product or as part of a balanced portfolio.
INVESTMENT OVERVIEW
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INVESTMENT HIGHLIGHTS Original investment sum returned plus a potential 100% capital uplift. 20 or 25 year index linked investment, predictable 7 - 9%* p.a returns. Guaranteed quarterly payments direct from Good Energy/ E.on. Government backed guaranteed Feed in Tariff’s (FiT). Invest with confidence - Clear, predictable schedule of returns. Good Energy, the UK’s only 100% green energy supplier. 100% of Feed in Tariff income paid. No restriction on investment size. No physical installation required. SIPP/SASS or cash investment. All installations are UK based, insured and fully maintained for the 20/25 year term.
Ethical Investment – Diversify your portfolio with renewable energy.
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CURRENT MARKET EXPERIENCE WITHIN THE UNITED KINGDOM INDICATES THAT ACTUAL SOLAR PRODUCTION GENERALLY EXCEEDS SOFTWARE PREDICTED OUTPUTS BY AROUND 15%
INVESTMENT PORTFOLIO
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TYPICAL INVESTMENT ILLUSTRATION
“Mr John. B” had paid into a private pension with a well known UK pension provider for almost 20 years. Upon examination of his retirement fund he realised that things were not as expected and his fund was losing value every year. John took some advice and opened a SIPP (self invested personal pension) with significant tax advantages and took control of his retirement planning. Via his SIPP, John acquired a portfolio of producing solar leases. The transaction was quick and simple and within weeks John’s SIPP received its first payment under the Government backed Feed in Tariff. Purchase cost of 4 systems £ 46,451 Locations – Kent, Devon, Northants and Hampshire Projected gross Income over 25 years £116,867 Projected net income over 25 years £70,416
(251.59%) (151.59%)
Alternative Markets Investment Illustration System 124
System 172
System 231
System 247
LOCATION System Capacity
ESSEX
DEVON
3.31
3.9
3.9
3.51
Annual predicted yield
1253 kw
1248 kw
1228 kw
1224 kw
FIT rate Cost
16.8 £10,643
16.8 £12,494
16.8 £12,287
16.8 £11,027
Projected Gross Earnings
£26,777
£31,434
£30,913
£27,743
NORTHANTS HAMPSHIRE
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THE INTERNATIONAL ENERGY AGENCY PROJECTS THAT SOLAR POWER WILL GENERATE MOST OF THE WORLD’S ELECTRICITY WITHIN 50 YEARS
STRUCTURE OF INVESTMENT The portfolio was created to provide a platform for a long term, reliable renewable energy investment, available as an addition to SIPP/SASS pension scheme or as a standalone investment. Each individual solar installation is installed and fully operational, having passed stringent due diligence and quality control before being added to the Alternative Markets portfolio. Already recorded on the OFGEM central FiT register and contracted to one of six national energy suppliers under the Government Feed in Tariff (FiT) scheme. Alternative Markets and their operating partners have long experience in the development of high quality solar installations. Alternative Markets is a growing portfolio of selected prime SPVs (Special Purpose Vehicles) consisting of over 2000 domestic and commercial solar PV installations. You may lease one or more complete solar pv installations from the Alternative Markets portfolio. The term of each lease runs concurrent with the Feed in Tariff contract, generally 20 or 25 years. You receive 100% of the income earned during this period. ROCs (Renewable Obligation certificates) and FiTs (Feed-in Tariffs) generate quarterly payments made directly from national energy companies, in proportion to the amount of electricity generated by each individual solar installation.
Income varies depending on the system output and the FiT rate in force at the time that the system was installed. Each solar installation varies in output, dependent on a number of factors. Alternative Markets audits each system and use predictive software, which uses empiric meteorological data to accurately predict the annual output for each installation. Each installation in the portfolio comes with an individual report and a prediction of potential income.
INVESTMENT PORTFOLIO
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Systems are highly efficient and have guaranteed performance over a 20 or 25 year lifespan. Insured and with full maintenance included, systems are monitored and optimised for peak performance. Each installation is fitted with a generation meter, which is enabled, using GPRS technology to transmit data to a central collection point. This data indicates how much electricity each system generates per day. These figures are compared with regional generation meters to ensure expected performance and to flag up any service issues. The UK Feed-in Tariff scheme directs that payment is made by national energy suppliers for each kilowatt hour (kWh) generated by renewable energy. Payments are index linked and made quarterly for the term of the investment/ lease.
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THE 2008 ENERGY ACT PAVED THE WAY FOR A BOOM IN GREEN INVESTMENTS
MARKET TREND FOR SOLAR Feed-In Tariffs were first introduced in Germany in the 1990s. They proved very successful and have made Germany a global leader in renewable energy production. Tariffs are now widely used across Europe and since 2010 in the UK.
Although the UK government initially resisted the introduction of feed in tariffs, the creation of the new Department of Energy and Climate Change (DECC) in 2008 and the changes to UK law in the 2008 Energy Act paved the way for a boom in domestic renewable energy production.
MARKET TREND
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OFGEM FEED IN TARIFF TABLE
UK progress against 2009 EU Renewable Energy Directive 4.0% 3.5% P erc entage
3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2004
2005
2006
2007
2008
2009
2010
2011
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IN 2011, GERMANY, THE UNITED STATES, ITALY AND THE U.K. ALL INSTALLED A RECORD NUMBER OF SOLAR PANELS IN THEIR RESPECTIVE COUNTRIES
Renewable energy is energy that comes from natural resources including solar, wind, geothermal heat and biofuels. In 2009 the EU Renewable Energy Directive was agreed, setting a target of 20% of all EU energy to come from renewable sources. Under this directive the UK must produce 15% of its total energy consumption from renewable sources by 2020. This Directive and an increasing global focus on the reduction of carbon emissions has succeeded in motivating governments across the world, to introduce incentives to help promote the increase in the adoption of renewable energy. Carbon is released when coal is burned to generate electricity. These carbon emissions harm the environment producing greenhouse gases and air pollution. Solar provides a sustainable means of generating electricity, reducing your carbon footprint and helping create a cleaner, less polluted environment.
The sun is largest energy source on the planet, and it is green and free. Solar is renewable energy that does not pollute the air and water or add toxic wastes to the environment. Solar reduces our dependence upon other sources of energy that pollute the environment and consume vast quantities of diminishing resources.
MARKET TREND
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Solar power has proven to be a reliable, predictable source of energy and income. China is poised to double its solar capacity for the second year in a row and solar is also quickly becoming a viable solution for . the 1.3 billion people around the world with no access to grid energy. Even though government subsidies are set to wind down over the next few years in Europe and the United States for solar, big investors are already picking up the slack. Berkshire Hathaway owned MidAmerican Energy Holdings announced in December it purchased a solar farm in Southern California for $2 billion. Google reported it invested over $450 million last year in solar projects. GE announced in 2011 that it’s going to build the largest solar plant in America, capable. of powering 80,000 homes each year.
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20 OR 25 YEAR RENEWABLE ENERGY INVESTMENT OPPORTUNITY
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PARTNERS
PARTNERS
SOVENTIX www.soventix.com
Soventix GmbH was founded in April 2010 as Sovello Projects GmbH and grew rapidly as a large scale solar installer in Germany and market leader in its domestic market. Today Soventix designs, builds and operates high quality solar power systems all over the world and has offices in Germany, Australia, South Africa, Canada and the USA.
In June 2011, Sovello Projects was renamed Soventix, backed by the international financial investor Vorndran Mannheims Capital Advisors GmbH, (former VENTIZZ Capital Partners Adisory AG) which has had previous successes in the photovoltaic industry with companies Ersol, PV Crystalox and 1366 Technologies.
EON www.eonenergy.com
E.on is one of the UK’s leading power and gas companies – generating electricity, and retailing power and gas – and is part of the E.on group, one of the world's largest investor-owned power and gas companies. Five million people get their electricity and
gas from E.on at home and at work – making them one of the top energy companies in the UK and as part of the E.on group, also one of the top energy companies in the world.
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PARTNERS
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GOOD ENERGY www.goodenergy.co.uk
Good Energy were the first energy supplier to offer 100% renewable electricity to UK households when they were founded in 1999. Producing electricity purely from wind, water, sun and sustainable bio generation, Good Energy is making fundamental changes to the way energy is generated and used in the UK. Good Energy has always believed the UK can be powered purely from renewable energy. From sunshine, wind, water and sustainable biogen, it produces 100% clean energy.
Good Energy's projected 2012/13 fuel mix Wind: 57% Hydro: 7% Solar: 30% Biogen: 6%
40,000 UK Solar Installations Producing 30% of its green electricity from a growing community of over 40,000 independent suppliers across Britain. Green energy pioneered incentives for renewable generators almost a decade ago and have been offering an expert Feed-in Tariff service through awardwinning schemes ever since. Certified Green Investment Partner Good Energy is fully verified by the Green Energy Supply Certification Scheme, the industry's equivalent to Organic Certification.
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Paul O'Brien Solar Installations
Progen Solar Ltd
www.pobsolar.co.uk
www.progen.co.uk
Paul O’Brien Solar Installations are a leading installer of both commercial and domestic solar systems. With offices in Bristol, Newport and Belfast and 1000’s of satisfied customers, they have built their reputation on the professional, friendly, high quality service they provide.
ProGen is committed to providing only the most environmentally safe and ethically sound products, protecting the environment for future generations. With ProGen Solar we offer an extensive choice of solar systems designed and manufactured to the highest standards. ProGen conducts home energy surveys making it easy for you to access the government energy grant funding and the F.I.T (feed in tariff). We will even supply an Energy Performance Certificate. Each one of our installations is backed by an Independent Warranty so you can rest assured that our promises are kept and our guarantees upheld.
PARTNERS
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Property Solicitors www.arcpropertysolicitors.com
Arc Property Solicitors specialise in residential and commercial conveyancing. We are property specialists and offer nationwide conveyancing both online and offline. Unlike many other conveyancing companies we employ fully qualified solicitors - as well as conveyancers - to ensure we are able to provide a fast and thorough conveyancing service. As we're a registered solicitors practice, we are regulated by the Solicitors Regulation Authority. We have acted for thousands of
clients around the country and last year alone we handled in excess of £400m in property transactions. We are committed to providing a modern, efficient conveyancing service from our head office in Harrogate, North Yorkshire. We've streamlined our procedures to speed up the conveyancing process. Much of the work is carried out online and we also operate a paperless office policy, so your files are only ever a couple of clicks away.
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20 OR 25 YEAR RENEWABLE ENERGY INVESTMENT OPPORTUNITY
RISK ASSESSMENT GENERAL RISK WARNING Potential investors should carefully consider the following risk factors in relation to the investment, which individually or in aggregate could have a material effect on the investment return, and should consult their financial advisor before investing. REVIEW AND EVALUATE Prospective Investors are not to construe the contents of this document as tax or legal advice. Prospective Investors should carefully review and evaluate the risks, and other information contained in this document before making the decision to invest in the SPV. If in any doubt, prospective Investors should immediately seek their own personal advice from their independent professional advisor, who specialises in advising on the acquisition of shares and other securities, or other advisors such as legal advisors and accountants. SUITABILITY OF INVESTORS An investment of this nature is only suitable for investors who are capable of evaluating the merits and risk of such an investment. Prospective investors should consider carefully whether an investment is suitable for them in light of their personal circumstances and their financial resources and should take appropriate independent professional advice. LEGISLA TION The information in this document is based on the understanding of current law and practice. None of the Directors, agents, or any of their advisors can accept responsibility if there is any change in the
law, HMRC practice or in the tax treatment of the investment or any of the Investors. OPERATIONAL RISK In the event of unforeseen circumstances or any natural disasters, out of control of any one person or entity the returns payable may fall. Under these circumstances, there is no assurance given the investment will achieve the target of return. The income is ultimately determined by the amount of power which is produced through each individual solar installation and the amount of power produced, depends on the amount of sunshine received at the site. An average meteorological calculation, (Pvsol) has been used in order to determine a conservative amount of sunshine.
RISK ASSESSMENT
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NO FORECASTS Historical facts, information and trends gained from historic experiences, present facts, circumstances and information, and assumptions from all, or any of these do not guide the future. Aims, targets, plans, intentions and projections referred to are no more than that, and so do not imply a forecast. Past performance is not necessarily a guide to future performance. TAXATION Each investor must consider their own tax position, and must take their own specialist advice. Any potential investors who are not UK resident for tax purposes are strongly advised to seek specialist advice on their own position.
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RISK ASSESSMENT NO INVESTORS’ COMPENSATION SCHEME The Investors Compensation Scheme as operated by the Financial Services Compensation Scheme in the United Kingdom is not available for claims relating to investment into the Alternative Markets Portfolio. MONEY LAUNDERING Procedures for the prevention of money laundering measures aimed towards the prevention of money laundering, require each applicant to verify his/ her identity and source of funds and wealth to the Administrator. Applicants, depending on their structure, will be required to provide the Administrator with evidence of identity and source of funds and wealth, as more particularly set out in the application form provided to applicants. This obligation is absolute and the Administrator will notify the supplicant if proof of identity in addition to that specified in the application form is required. VERIFICATION In accordance with the Money Laundering Regulations 2007, the investment administrators will require verification of the identity of every potential investor and any authorised intermediary acting for a prospective Investor. Any forms submitted must be completed in full, and the payment mechanism as detailed in the application forms and shareholders and subscription documentation must be adhered to strictly. At its discretion, however, the Administrator may accept a money laundering certificate as evidence that the Introducing Advisor has diligently carried out the appropriate
money laundering prevention checks as detailed in the application process, and is duly authorised to complete and sign off the required detail on the Introducing Advisors section of the application form. REJECTION Any potential investor not meeting the requirements will have their application rejected as we are under a legal duty to comply with the Anti-Money Laundering Regulations.
RISK ASSESSMENT
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COMPLIANCE All investors should complete the application forms fully and comply with the information/requirements stated therein. DATA PROTECTION The Company and or the Administrator may hold personal data relating to the past and present Shareholders. Personal data may be retained on record after it is no longer used. Such personal date is processed by the Administrator to maintain the register of members and mailing lists, which may involve sharing such data with third. By becoming registered as a holder of a lease from the Alternative Markets, a person becomes a data subject and is deemed to have consented to the processing by the Company or the Administrator of any personal data relating to them in the manner described above. Any details or information submitted during the course of the application will be retained on a database at its registered office, under the provisions of the Data Protection Act 1998.
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20 OR 25 YEAR RENEWABLE ENERGY INVESTMENT OPPORTUNITY
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What is the process of investment (cash and SIPP/SASS investor)? The process is simple and similar to purchasing property. To register your interest you must complete and return a reservation form and supply proof of your identification in line with money laundering regulations. Contracts will then be sent and settlement made to our UK based Solicitors, Arc Property Solicitors, who, acting on your behalf, check all documents and title are correct before authorising the transfer of the lease to your chosen beneficiary. Quarterly feed in tariff payments will then be made to an account of your choice. The process is simple and similar to purchasing property.To register your interest you must complete and return a reservation form and supply proof of your identification in line with money laundering regulations. Contracts will be issued to your SIPP trustee, and settlement made to our UK based solicitors Arc Property Solicitors, who, acting on your behalf, check all documents and title are correct before authorising the transfer of the lease to your SIPP/SASS. Quarterly feed in tariff payments will be sent directly to your SIPP/SASS account.
scheme work? In order to help meet European Union targets for carbon reduction, the government introduced Feed in Tariff’s or FIT’s to incentivise clean energy production. The scheme guarantees to pay a fixed price, index linked for up to 25
years for all clean energy produced. The energy providers issue quarterly performance figures to the energy regulator OFGEM who makes payment to the energy supplier. You then receive 100% of the FIT payment direct from the energy supplier.
FAQ
FAQ
How do I know my system/s will perform well? Each individual solar installation is installed and fully operational, having passed stringent due diligence and quality control before being added to the Alternative Markets portfolio. Each installation is fitted with a generation meter, which is enabled, using GPRS technology to transmit data to a central collection point. This data indicates how much electricity each system generates per day. These figures are compared with regional generation meters to ensure expected performance and to flag up any service issues.
compensation scheme? No. The Investors Compensation Scheme as operated by the Financial Services Compensation Scheme in the United Kingdom is not available for claims relating to investment into the Alternative Markets.
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Alternative Markets
What is PVGIS (Photo Voltaic Geographical Information System)? PVGIS is a free to use web based tool for the calculation of solar energy yield. Built for the European Union Joint Research Council and generally recognised as the most precise predictive measure of future performance. PVGIS provides detailed estimates of energy output based on the equipment used, precise location of each installation, climatological data from the European Solar Radiation Database and other calculations.
Can ownership of my lease be transferred?
FAQ
FAQ
Yes, you may reassign ownership of your lease as you wish. This is a simple, standard transaction for your solicitor.
What happens if my system malfunctions or is stolen or damaged? Your system is fully insured for damage, malfunction, loss or theft. Any interruption in performance will be quickly highlighted and the appropriate action taken to get things back on track. What happens to the systems at the end of the lease period? At the end of your lease, the solar panels are legally transferred to the home owner on whose roof they are situated. As the panels have an effective life span of maybe 50 years, they will continue to produce clean, green, subsidised electricity for many years to come.
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Alternative Markets
The following industry references have been utilised in the production of this white paper. Alternative Markets cannot be held responsible for any information utilised from these reference articles. For any questions on the contents of the items below please refer to the article’s author. DEPARTMENT OF ENERGY & CLIMATE UK Energy in Brief: a summary of some of the key developments in the UK energy system http://www.decc.gov.uk/en/content/cms/statistics/publications/brief/brief.aspx
REFERENCES
REFERENCES
CERTAINTY FOR FEED-IN TARIFFS Energy and Climate Change Minister, Greg Barker http://www.solarpowerportal.co.uk/news/exclusive_certainty_for_feed_in_tariffs OFGEM FEED IN TARIFF TABLE http://www.ofgem.gov.uk/Sustainability/Environment/fits/tarifftables/Documents1/Tariff%20Table%201%20August%202012%20PV%20Only.pdf GOOD ENERGY FEED IN TARIFF COMMUNITY http://www.goodenergy.co.uk/feedintariff GREEN ENERGY SUPPLY CERTIFICATION SCHEME http://www.greenenergyscheme.org/ UK DEPARTMENT FOR ENERGY AND CLIMATE CHANGE http://www.decc.gov.uk SOLAR POWER FOR WORLD’S POOREST http://www.guardian.co.uk/environment/2012/jul/03/solarpower-renewableenergy SAINSBURY'S CLAIMS TITLE OF BIGGEST SOLAR POWER GENERATOR IN EUROPE http://www.guardian.co.uk/environment/2012/aug/03/sainsburys-biggest-solar-powergenerator-europe Trademarks and Copyrights - All trademarks referenced in this document are recognised by Alternative Markets and remain the property of their respective owners. Disclaimer of Liability - Alternative Markets makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contain in this document or any sites linked referenced. Limitation of Liability THE MATERIALS INCLUDED ARE PROVIDED "AS IS" WITHOUT ANY EXPRESS OR IMPLIED WARRANTY OF ANY KIND INCLUDING WARRANTIES OF MERCHANTABILITY, NONINFRINGEMENT OF INTELLECTUAL PROPERTY, OR FITNESS FOR ANY PARTICULAR PURPOSE. IN NO EVENT SHALL ALTERNATIVE MARKETS OR ITS AGENTS OR OFFICERS BE LIABLE FOR ANY DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS, BUSINESS INTERRUPTION, LOSS OF INFORMATION, INJURY OR DEATH) ARISING OUT OF THE USE OF OR INABILITY TO USE THE MATERIALS, EVEN IF ALTERNATIVE MARKETS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGES.
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ALTERNATIVE MARKETS World Trade Centre, Zurich, Leutschenbachstrasse 95, 8050 Zurich, Switzerland Tel CH: (+41) 43 508 1418 Tel UK: +44 (0) 2033 846 260
Opus Investment Group BVI 1 Berkeley Street London W1J 8DJ
DELIVERING INDIVIDUAL & BUSINESS SUCCESS
Email: info@alternativemarkets.co.uk Web: www.alternativemarkets.co.uk
Acorn MG Level 17, Dashwood House, 69 Old Broad Street, London EC2M INA
Email: info@opusinvestmentgroup.com Web: www.opusinvestmentgroup.com
+44 (0) 207 256 4284 Tel: Sales: +44 (0) 207 099 6580 Fax: +44 (0) 207 757 7423 Email: info@acorn-mg.com Web: www.acorn-mg.com
E.on Westwood Business Park Coventry, England
Soventix GmbH Schifferstrasse 200 47059 Duisburg, Germany
+44 (0) 24 7642 4000 +44 (0) 24 7642 5432 info@eon-uk.com Email: Web: www.eon-uk.com
Tel: Fax:
Good Energy Monkton Reach, Monkton Hill Chippenham, Wiltshire SN15 1EE
Arc Property Solicitors The Studio, Greengate Cardale Park, Harrogate HG3 1GY
Tel: Fax:
+44 (0) 845 835 4772 +44 (0) 845 835 4772
Tel: Fax:
Tel: Fax:
+44 (0) 845 456 1640 +44 (0) 1249 766091
+49 (0) 203 449 860 0 +49 (0) 203 449 860 990
Email: info@soventix.com Web: www.soventix.com
Tel: Fax:
+44 (0) 800 612 9097 +44 (0) 412 359 4688
Email: enquiries@goodenergy.co.uk Web: www.goodenergy.co.uk
Email: info@arcpropertysolicitors.com Web: www.arcpropertysolicitors.com
Paul O'Brien Solar Installations (SW) Ltd Unit 6, Brookgate, South Liberty Lane Ashton Vale, Bristol BS3 2UN
Progen Solar Ltd 10 Old Wood Close, Chorley Lancashire, PR7 2FZ
Tel:
+44 (0) 117 953 3234
Email: info@pobsolar.co.uk Web: www.pobsolar.co.uk
Tel: Fax:
+44 (0) 800 756 6299 +44 (0) 800 014 8072
Email: info@progen.co.uk Web: www.progen.co.uk