Shared Ownership Success For Big60Million Points To Community Solar Growth
Big60Million Ltd have announced sales and reservations of hundreds of thousands of pounds with their Solar Bond shared ownership scheme.. The announcement comes as the Shared Ownership Taskforce (SOT) enters the final stages of a consultation designed to decide how ordinary people can benefit from community energy.
With the SOT consultation on community energy closing on Friday, interest in community solar power is soaring, at Willersey Solar Farm, through the sale of Big60Milllion Solar Bonds. Already, over £500,000 of Bonds have been sold, or reserved, since the Bond launched four weeks ago. The Big60Million Solar Bond offers investors a fixed 7% return, with individual Bonds costing only £60 each.
The average size of investment received so far of £4,389 per investor, produces enough income (before tax) to offset the equivalent of over half (53%)1 of an average household's electricity bills2 "“ every year for five years with the original investment returned in full after that time or the opportunity to reinvest.
The bond was offered to the local community first (26th July), before being issued nationally three weeks later. Two open days have been held on the solar farm, with over 100 local residents visiting the farm.
Whilst the Solar Bond offers financial returns to investors, local residents also receive environmental and social benefits from the farm. The solar farm has been turned into a nature sanctuary and is now home to more than 100,000 bees, supporting local biodiversity and agriculture.
Councillor Anthony Blagg, Cabinet Member for Environment, Worcester County Council said:
"I was impressed by my recent visit to Willersey Solar Farm where land which has limited value for agricultural has been used to generate much needed electricity for the nation. The fact that local residents can invest in the project and the land under the panels is being used to increase local biodiversity is a major bonus."
Big60Million CEO, Toddington Harper, said, "This bond issue is a first step in offering all 60 million people nationwide the chance to benefit from investing in clean, solar energy right across the country. We are delighted that so many local residents, and now people from across the country have been purchasing Big60Million Solar Bonds.
"However, the benefits of Big60Million Solar Farms go far further than just money in peoples' pockets which can be used to offset electricity costs. The projects also benefit the environment in several ways as well as local communities through engagement with school groups, supporting local bee keepers and also using the site for organic community growing schemes."
However, this unparalleled community benefit has come under threat as the Government debates the nature of what constitutes community energy. The SOT are considering three potential models of community ownership: shared revenue, split-ownership and joint venture.
The Willersey Solar farm is the first Big60Million project, offering unparalleled financial benefits to investors. The farm is a shared revenue community energy project, and bond sales are used to refinance the initial construction costs, fund further projects, and offer a fixed return to investors.
Future, pioneering developments, such as this, may come under threat, should the SOT not recommend a shared revenue approach to community energy, as part of their response to DECC.
Harper continued, "It is essential that the government continue to support community energy, including innovative models such as shared revenue bond models that are able to deliver unparalleled financial, environmental and social benefits to this country."
