£2.75m Solar Array For Somerset Village
Working in partnership with Triodos Bank, community benefit society Chelwood Community Energy Limited is launching a £2.75 million share issue. Funds raised will be used to finance the development of a 5MW solar scheme located on 22 acres of low grade agricultural land next to the village of Chelwood, Somerset. The 25 year scheme, which will benefit from the Government's Feed-In-Tariff, is expected to generate sufficient renewable energy each year to power 1,160 homes. The project is also planned to generate up to £1.2 million of contributions to a local Community Benefit Fund which will fund local infrastructure projects (such as high speed broadband for the village), local wildlife conservation measures and energy efficiency schemes.
Chair of Chelwood Community Energy Limited, Don Weston says: There have been many changes in the forty years that I have lived in Chelwood but perhaps the most significant is the prospect of a project that will create an energy self-sufficient village and will generate funds to benefit the local community."
Chelwood Community Energy Limited will pay investors 5.5% gross annual interest in year one, increasing thereafter in line with the annual retail price index (RPI) to help protect the return on their investment against inflation. The community benefit society is projecting a total return of 9.2% gross per year over the life of the project assuming the RPI is 2.5% per year and including EIS tax relief. If the project performs above expectations then any additional surplus will be paid to the Chelwood Community Benefit Fund. Investor returns are dependent on the successful construction and operation of the solar scheme.
Head of Triodos Corporate Finance, Dan Hird comments: "We are really pleased to advise on this community-led renewable energy project which combines index linked and tax efficient returns for investors with the creation of a very substantial community benefit fund."
The minimum investment in the Chelwood share issue is £500 and £200 for people living within a 5 mile radius from the project.
Chelwood Community Energy Limited was formed as a community benefit society earlier this year with the sole objective of acquiring, developing and operating the 5MW ground-mounted solar scheme for the benefit of the community. A significant proportion of the Company's forecast income will be generated by the Government's Feed-in-Tariff; a 20 year inflation linked pricing mechanism which provides a secure income stream. The board members of the community benefit society collectively have a wealth of experience in the fields of renewable energy, finance and project management and have engaged a range of specialist advisers to help them deliver the project.
Chair of Chelwood Community Energy Limited, Don Weston
"There have been many changes in the forty years that I have lived in Chelwood but perhaps the most significant is the prospect of a project that will create an energy self-sufficient village and will generate funds to benefit the local community."
The offer launches on Tuesday 23 June and will close on Friday 31 July unless fully subscribed earlier or otherwise extended.
The Chelwood share issue is also supported by Resonance Ltd who are providing a £600,000 underwriting facility through the Resonance Community Share Underwriting Fund.
Investment decisions must only be made on the basis of the offer document and not on any information provided in this press release. Chelwood Community Energy Limited's ability to pay interest and repay the capital to investors is dependent on the success of its business model and in particular the successful construction and operation of the solar scheme. Chelwood Community Energy Limited shares are unquoted securities and are non transferable. This is a long term investment and investors should be aware that they may not be able to withdraw their capital for up to 25 years. An investment in Chelwood Community Energy Limited shares is not covered by the Financial Services Compensation Scheme.
