Cheaper electricity

Why join Salpatuuli cooperative? Besides that you participate in production of clean energy and own a share of wind power plants the return of the participation shares is excellent! Let’s compare the cooperative price of electricity to the market price.

Wind share electricity price compared to the market price of electricity.

                        Market price                            Wind share electricity
Electricity price    7.35 c/kWh                          2.5 c/kWh
Electricity tax    1.703 c/kWh                           1.703 c/kWh
VAT 24 %    9.053 c/kWh x 0.24 = 2.173 c/kWh   4.203 c/kWh x 0.24 = 1.009 c/kWh

In Total           11.23 c/kWh                                  5.21 c/kWh

Wind share gives total savings of 11.23 - 5.21 = 6.02 c / kWh. I case of single wind share this means 500 kWh x 6.02 c/kWh = 3010 c = 30.10 € savings per year.

Payback time can be calculated for one wind share (investment of EUR 250). The average interest rate over the past two years in Finland in mortgages tight to the Euribor interest rate has been about 1 - 2%. So 2% discount rate is used.

The payback time of a wind share is about 9 years.
(t=ln[30,10 / (30,10 – 0,02 x 250)]/ln(1+0,02) = 9,17)
Wind share’s annual rate of return is then 12.04%.
(=30,10 € / 250 € x 100 %)

Example of a house with electricity heating:

Consider a family living in a house. In this example their annual electricity consumption is 24 000 kWh. They have 80% of their annual electricity consumption covered with wind shares. This means they have 40 wind shares, i.e. 20 000 kWh.  Above calculated 6.02 c / kWh difference between the market price and wind share price of electricity generates annual savings of 1200 euros.

The profits of voluntary profit shares depend on the cooperative’s production capacity, the financial result of cooperative and the number of profit shares. Of the interest for share capital (dividend) from cooperative one pays tax for 25 percent of the income when the amount of the divident is max 5000 euros. This means that with 10% interest rate for share capital you could have about 30 profit shares without having to pay capital tax. The decision of how high interest rate is to be paid is done by the meeting of the cooperative according to the proposition made by the board. As said the revenue depends not only on the cooperative outcome but also on the total number of profit shares acquired. According to calculations the revenue may be paid for about 4 - 10%.