Community Energy Bonds Raise Over £2 Million
Mongoose Energy has announced that two of its affiliated community energy companies (bencoms) have raised over £2 million since the government closed its Enterprise Investment Scheme tax relief for community energy projects.
The bonds have been launched to bring two large-scale solar arrays into community ownership, a 4MWp array in Portworthy, Devon "“ 5 miles from Plymouth "“ and a 4.59MWp array at Puriton, Somerset "“ near the proposed Hinkley C nuclear plant site.
The bonds were launched by Bath and West Community Energy (BWCE) and Bristol Energy Cooperative (BEC) and respectively offer expected fixed-rate returns of 5.5 percent pa (6 percent to shareholder members of BWCE and local partners) and 6 percent.
BWCE's bond launched in the run up to Christmas and closed early having hit its investment target of £1.682 million. BEC was the second to launch a bond offer and this has already attracted over £400,000 and closes on the 31st March.
Bristol Energy Cooperative director, Chris Speller, at the Puriton solar array.
Jan-Willem Bode of Mongoose Energy said: "BWCE continues to be a fantastic case study for the community energy sector, which delivered strong returns for investors in our cooperatives in 2015. The exceptional interest we've seen in the bonds highlights the strength of the sector and gives an extra incentive for people to back these local, renewable energy generation schemes that plough additional profits back into the community, financing projects that address issues like biodiversity and energy poverty."
The bond offers have been independently approved as a financial promotion under the Financial Services and Markets Act 2000. Both bonds are run in association with the community energy firm Mongoose Energy and are available through the award winning positive investment and savings platform, Ethex.org.uk. Finances go to Bristol Energy Cooperative (to fund the Puriton array) and Bath and West Community Energy (to fund the Portworthy array).
Sarah Flood, acting CEO of Ethex said: "Ethex is pleased to see the continued investment in community energy projects to bring clean, green energy into community ownership."
