Virgin Money and Ripple Energy have signed a financing deal to support the latter’s 42MW solar project in Devon.
The £21.8m funding will support the construction and operation of Derril Water Solar Park, the first PV farm in the UK where members share the power it produces, as well as the ownership.
Approximately 68,000 solar panels will generate enough electricity to power 14,000 homes each year when the array near Torridge becomes operational in 2025.
Established in 2017, Ripple Energy has promoted a co-operative business model for the development of new renewable energy resources.
Virgin Money has helped fund one of two wind farms Ripple has developed with this successful model.
Derril Water Solar Park will be part-owned by nearly 10,000 individuals or households, plus 34 SME businesses, who will benefit through reduced energy bills rather than receiving dividends as a return on their investment.
This is Virgin Money’s second deal with Ripple Energy and takes the bank another major step towards its ‘Build a Brighter Future’ ESG goal to grow their Energy & Environment lending to £500m by 2025, and a 50% reduction in carbon emissions across financing activities by 2030.
Virgin Money’s senior director, renewable energy, Adam Heslop said: “A funding deal of this size inevitably involves a very detailed process of assessment, but Ripple had already raised equity from investors of over £20m, and our experience with funding its 18.8MW Kirk Hill Wind Farm in Ayrshire significantly cut the time required to initiate this new project.
“Kirk Hill came on stream in June this year, and we have the greatest confidence that Ripple will bring Derril Water Solar Park online as planned in the Spring of 2025.”
Ripple founder and chief executive Sarah Merrick (pictured) said: “A clean energy revolution is underway in Britain, and it’s our mission to make sure real people are at the heart of it.
“Derril Water Solar Park is an incredible example of how we accelerate the transition in a way that members of the public directly benefit.
“With Virgin Money’s support, we are set to energise the site in spring, delivering cleaner and more affordable energy to the thousands of owners.”