Burnham and Weston Energy CIC Bond Offer Launched – 5% inflation linked bonds to support one of the UK’s largest community solar farms!
Burnham and Weston Energy CIC’s bond offer is the cumulation of over two years’ of work by CfR to realise one of the largest community solar farms in the UK. The operational solar farm currently generates enough carbon-free electricity to power the equivalent of over 2,000 homes. It is expected to generate around £3million in surplus income over its life to help local people struggling with fuel poverty and support community projects in Burnham-on-Sea, Weston-super-Mare and the surrounding area.
The bond offer aims to raise an ambitious £4,000,000 with 5% inflation linked bonds. We think it’s the largest UK community energy bond raise yet, and it has already reached over 70% of its target.
The bonds are available on the Triodos Crowdfunding website. The initial investment will be repaid in instalments over 18 years. As with similar community energy investments, interest payments are not guaranteed and capital is at risk. The bonds are eligible to be held in a Triodos Innovative Finance ISA (IFISA) which allows investors to earn interest tax-free. Be aware that IFISAs have eligibility criteria and any tax savings depend on personal financial circumstances.
Investments can be made from £200; roughly equivalent to 2 of the community solar farm’s 36,000 panels! Each bondholder will also be given a single share in Burnham and Weston Energy CIC, enabling them to take part in AGM decisions on a ‘1-member 1-vote’ basis.
You can visit the Triodos Crowdfunding website to read the bond offer document and find out more.
Jake Burnyeat, our Managing Director said: “The shift to a decentralised green energy system creates the opportunity for communities to take back control, and reverse the energy spend drain on the local economy.
Burnham and Weston Energy has been set up to help the communities of Burnham and Weston take advantage of this opportunity, with around £3 million in surplus profits going into the local community over 23 years. We want to involve investors who share our values.”
The community solar farm has been in operation for two years and expects to pay out £50,000 per year from the outset to support the community purpose of Burnham and Weston Energy CIC. Half is to be used for the Sunshine Community Grant Fund supporting local clubs and sustainability projects, and the other half will tackle fuel poverty to help households who are choosing between food and warmth.
An investment in Burnham and Weston Energy CIC bonds is not covered by the Financial Services Compensation Scheme. Burnham and Weston Energy’s ability to pay the interest and repay the bonds is not guaranteed and is dependent on the continued success of its business model. These bonds are unquoted securities with a fixed repayment date and although the bonds are transferable, investors should be aware that they may not be able to access their capital during the life of the bond.