Five UK community energy groups have teamed up as Community Energy Together (CET) and launchedshare offers to fund the transfer of seven operational solar farms into community ownership.
The sites are in Shropshire, Kent, Devon, Isle of Wight and Swansea. Four Community Benefit Societies (CBSs) launch their share offers today (31 July), with the fifth (Gower Power in Swansea) expected to follow suit soon.
The share offers will enable people across the UK who care about climate change to put their money to work to tackle the issue directly while earning a fair return said CET. Investing in these solar farms supports the community energy revolution, democratising energy ownership through community-owned renewables that create benefits for everyone it added.
The solar farms have a collective total capacity of 36MWp, enough to power around 12,750 homes and save around 317,000 tonnes of CO2 over their lifetimes.
Bringing the portfolio of seven solar farms into community ownership will increase the capacity of community owned solar energy in England and Wales by approximately 20%. Over the lifetime of the projects it will generate a collective community benefit fund of around £20m to support local social and environmental projects and develop new community renewables developments.
A cross-collateralised finance model has been created by the current owner of the portfolio, Community Owned Renewable Energy (CORE), a partnership set up by Big Society Capital and Power to Change to oversee the transfer of solar farms into community ownership. The model reduces the cost of borrowing and spreads risk, thereby increasing the size of the community benefit pot.
Collaborating through CET, the CBSs will acquire the portfolio from CORE, completing the process of transferring it from commercial to community ownership ensuring future surpluses are safeguarded for reinvestment in their local areas.
“Our evidence shows that when assets and services are owned by the people they serve, they offer better value for the public, keep resources and jobs local, create community wealth and build economically resilient places,” said Power to Change climate action manager Will Walker.
“Community businesses are part of the solution to making better places to live and work, while accelerating responses to the climate emergency and zero carbon transition.
“Power to Change invested in CORE and provided support to the CBSs to ensure they are well equipped to develop these solar farms into successful zero carbon assets that will deliver for local people and nature for many years to come.”
Shropshire and Telford Community Energy (STCE) chair Robert Saunders said: “Community owned energy gives individuals the vital opportunity to play a part in the clean energy transition beyond just being a consumer. STCE is in great company with four like-minded Community Benefit Societies.
“While owning our individual solar farms, we are committed to working together and supporting each other so that we can benefit from each other’s expertise, experience and share knowledge and lessons along the way.”
The share offers are being launched on positive investment platform Ethex with a target annual return of 6%. The total fund raise target is £2.5m. Funds raised over that amount will be used to repay debt early and contribute to an increase in community funds. Investments begin at £250.
“This is a great opportunity to invest in local solar power at a national scale to support a cleaner, greener, fairer future,” said Ethex chief executive Lisa Ashford.
“Investors can own a stake in a solar farm near them, or diversify their portfolio by investing in several across England and Wales.
“What is more, every £1 invested in a Community Energy Together solar project will generate £8 of community impact value, while supporting much-needed locally generated and owned renewable energy.”
Community Energy England chief executive Emma Bridge added: “The simultaneous launch of these CET share offers marks a significant milestone for community energy. Raising £2.5m from community investors to create community benefits of around £20m demonstrates the immense potential of the sector. Local ownership of our green energy infrastructure is vital for engaging people with the changes we must make to get to net zero.”
Yealm Community Energy chair Peter Brown said: “As a community enterprise with a strong track record in tackling climate change and supporting local carbon reducing and environmental initiatives we are very pleased to be offering local people and those further afield the chance to invest in YCE and enable us to take ownership of three solar farms in South Devon.
“Belonging to Community Energy Together is like being part of a larger, supportive family, working together to get the best out of all our solar farms and maximising the surpluses we can all devote to the local green economy.”
Shareholders will become a member of the CBS they invest in on a one vote per shareholder basis. To find out more, visit: https://www.communityenergytogether.co.uk
To download the Share Offer Documents and invest, visit: https://www.ethex.org.uk/