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The multiple benefits of community-owned energy
We look at the Community Energy Together portfolio of clean energy assets and who benefits when renewable energy generation is owned by the community.
At the beginning of August, Ethex launched a portfolio of solar share offers, a first for the platform, giving people the opportunity to invest across a linked network of community energy groups, each bringing operational solar farms into community ownership.So far, more than £650,000 has been invested across the four live share offers*, with new investors coming on board every day. We’re committed to helping more people invest to help these share offers hit their target. The impact of this on the community energy sector will be huge, with more communities seeing the benefits of clean energy generation that creates funding for vital community initiatives.
In our recent Cuppa Club webinar, we chatted with representatives from Community Energy Together to learn more about the impact investments in the share offers will help create. You can watch a short collection of highlights from the discussion here.
One of the key themes emerging from the discussion is that although the share offers are investing in existing renewable energy assets, bringing these into community ownership will help fund new carbon-cutting and local impact initiatives across the communities involved.
So, who benefits from community energy?
This important point is central to the community energy model. When solar farms (or other renewable energy assets) are owned by the community, the excess revenues generated are used to benefit the community rather than being paid to shareholders.
In the case of the Community Energy Together portfolio of assets, the excess revenue that will be channelled into new energy and community initiatives is expected to be around £20 million over the lifetime of the solar farms. That's a lot of money that can be used to do something positive. Here, we outline some of the projects that each of the community energy groups involved in Community Energy Together have already supported.
Yealm Community Energy’s community fund has already benefited a number of local causes, including funding a pioneering community electric ferry, as well as local tree planting initiatives and allotment improvements that enhance biodiversity and benefit local wildlife.
Kent Community Energy have been supporting local groups that tackle issues such as homelessness, domestic abuse, and mental health and providing funding for a local food bank. While they are continuing their support for these important causes, they are now including more carbon reduction projects in their funding.
Shropshire and Telford Community Energy have also been providing funds for a range of great local projects, including supporting a local orchard with planting and beekeeping, promoting sustainable practices at a community fair, and funding community halls for insulation, LED lighting and solar PV.
Wight Community Energy’s fund has enabled The Footprint Trust to tackle fuel poverty by conducting energy surveys and providing advice to help households save on their energy bills while cutting carbon emissions. This is just one of the projects they will support, with a key focus on promoting carbon reduction, energy efficiency, and ending fuel poverty.
An investment that grows
At Ethex, our community of investors are interested in the impact their money will have. The Community Energy Together portfolio provides the opportunity to use your money in a way that will grow multiple new benefits and initiatives for communities. Once the solar farms are in community ownership, they will boost their community benefit funds, meaning more of these amazing local projects will reap the rewards.
Four of the Community Energy Together share offers are currently live on Ethex, and you can invest in them from £250, targeting a 6% return.
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