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Schools Energy Co-op

Schools Energy Co-op 2019 community shares offer

£100 minimum (£50 if on behalf of children)

Risk factors

All investment and commercial activities carry risk. Anyone buying shares in Schools’ Energy Co-operative is at risk of losing some or all of the money invested and there is no guarantee that you will receive any return on your investment.  The shares are not covered by the Financial Services Compensation scheme or the Financial Ombudsman service.

Accordingly, the money you pay for shares is not safeguarded by any deposit protection scheme or dispute resolution scheme. Members should take appropriate advice and make their own risk assessment whilst also bearing in mind the social, educational and environmental benefits of investing in Schools’ Energy Co-op. This is an unregulated share offer. Your attention is drawn to the specific risks identified which you should take into account before investing.

Taking up shares in a trading business is not a loan or deposit. Your capital is at risk. Holding shares is a long-term proposition for up to the life of the project (which is 21 years) with capital repaid during that period; and although arrangements have been made to enable early repayment your shares may not be readily realisable.

General Risks – Shares

Investing in shares is not the same as investing money in a bank account as your capital is at risk and you could lose up to, but not more than, your entire investment. An investment in the shares is not covered by the Financial Services Compensation scheme or the Financial Ombudsman Service. So the money you pay for shares is not safeguarded by any deposit protection scheme or dispute resolution scheme. There is no guarantee that you will receive any return on your investment.

Your shares will not be tradable. Your shares can be withdrawn (i.e. redeemed by the Co-op for the price paid for them – in this case £1 each) in accordance with the Co-op's Rules but may not be withdrawable at short notice or when you wish to do so. If the Co-op lacks sufficient cash to enable shares to be withdrawn when desired, withdrawal may be delayed or not possible. Investment in the shares should be seen as a long-term proposition.

Shares in Schools’ Energy Co-operative are not regulated investments for the purposes of the Financial Services and Markets Act 2000 (as amended) and therefore you do not have the protection provided by that Act. This share offer is exempt from regulation under that Act and regulations made under it. This share offer does not need approval and has not been approved by an approved person under that Act. This share offer is not regulated by the Prospectus Regulations 2005 (as amended), which do not apply because there is a specific exemption for the type of fundraising being offered in this offer Document (non-transferable shares).

Renewable Energy Industry risks

Changes in legislation and regulation, especially to taxation, the value or availability of the Feed-in-Tariff and regulations relating to the charging and supply of electricity, may affect the Co-op’s income or make its offer to schools less appealing.

Weather patterns, electricity prices and business costs can fluctuate.

New inventions and developments may render existing technologies and equipment obsolete.

Generation from new sites is based on projections using established data sources which may not prove accurate.

Unexpected maintenance costs in excess of budget provision can arise.

Unexpected difficulties or delays can arise in construction which if long enough could lead to an inability to claim Feed-inTariff for that installation.

Although solar panel installations are extremely reliable, electrical or other failure can interrupt the generation of electricity or the distribution network and lead to unexpected costs and interruptions of generation. Manufacturers' warranties and guarantees offer some protection but do not normally cover all the costs. The solar panels are insured against loss and damage from fire, flood, theft and vandalism.

Income from exported electricity is difficult to claim under present regulations and budgeted income from that source (which is modest as a proportion of the Co-op’s entire projected income) may not be achieved.

Risks specific to this offer and to Schools’ Energy Co-op

The target share interest payments are not guaranteed and may not be achieved.

Equipment to be purchased by the Co-op will be supported by guarantees from companies believed to be financially robust, but equipment suppliers, contractors or other contracting parties with the Co-op could fail to meet their obligations.

The electricity being generated by the panels is being sold to schools and the income of the Co-op depends on those schools honouring their obligations to the Co-op and the schools continuing to have a demand for electricity from the solar panels.

On about the 20th (or 25th in a few cases) anniversary of their commissioning the solar panels will transfer to the relevant host school without payment. That school will take over any liability relating to the subsequent repair or removal of the panels and will benefit from the electricity generated after then.

Legislation and regulations relating to the ability of schools to contract with the Co-op may change and adversely affect the Co-op.

Schools may decide to dispose of or sell any of the buildings on which solar panels are located or to use them in such a way that the panels need to be removed. If that happens, the school may seek to transfer the contract with the Co-op to the successor to those buildings, or will pay the Co-op the depreciated value of the solar panels at the time of disposal plus a premium and the school will then withdraw from the project.

The financial projections incorporated in this offer are based on financial modelling incorporating a range of variable, changeable and uncertain factors, having due regard to historic evidence and the experience gained by the Board, Energy4All and Joju Solar. They include estimates of hours of sunshine, operational costs, the reliability of the equipment installed and replacement and repair costs. While every effort has been made to present an accurate forecast of the financial returns, this is no guarantee of the actual return received by members which could be less than projected.

Offer Closed

 As of 31st December 2019 this offer is closed.

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