Triodos Bank UK has provided a £3m loan that will help bring a solar farm in Shropshire, in the UK, into 100% community ownership.
Located on the outskirts of Sheriffhales village, the 3.2MW solar farm is owned by Sheriffhales Community Energy, a not-for-profit community benefit society governed by local volunteer directors, which has been set up to generate income for the parish.
The solar park was originally commissioned in 2016 by a commercial renewable energy company.
In 2016 it was brought into part-community ownership, first through Mongoose Energy, then in 2018 through short-term investment from a social investment fund.
The new bank debt and community bond finance enables the repayment of this short-term loan, bringing the solar farm into secure, long-term community ownership.
Over the past six years, the community solar array has exceeded the long-term average generation projections by 5% and is currently generating over £400,000 per year in revenue.
With the new finance arrangements, the wind farm could generate around £1m surplus for community projects over the solar farm’s expected operating life through to 2040.
The community fund has, to date, provided over £150,000 of support to local social and environmental projects, including funding food parcels during the Covid-19 pandemic, a subsidised taxi service for eligible village residents, a village hall extension and providing LED lightbulbs to every household in the parish.
The funds are distributed by the Sheriffhales and Community Renewable Energy Committee (SaCREC), a registered charity which is tasked to target the solar farm funds where most effective in the parish.
Peter Bonsall, chair and trustee of Sheriffhales Community Energy, said: “Sheriffhales is now one of the few villages in the UK to own its own solar farm.
“We are a rural parish with an agrarian economy – we don’t have a village pub, shop or bus.
“Bringing the solar farm into community ownership will bring an income to the parish that is more than the parish council precept.
“We will be using those funds to help address some of the challenges we face as a rural community, to tackle fuel poverty and other urgent village needs.”
Protecting local biodiversity and wildlife has been a priority for the project.
The land under and around the solar panels maintains species of grasses, herbs and wildflowers.
Bat and bird boxes are located around the site.
The project is managed by Communities for Renewables (CfR) CIC, which provides company and asset management services to local energy enterprises across the country and has a longstanding relationship with Triodos Bank.