THANKS HALF A MILLION!

We now have over half a million pounds worth of investment in Southill Community Energy. With less than a week left to go until the share offer IS DUE TO close, what does this mean for the project, our investors and anyone still thinking of investing?

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The banks are listening

£500,000 is a key milestone in the equity raise.

We have made significant progress with discussions with banks and underwriters and are edging closer to Heads of Terms with these partners. Hitting 25% of the equity signals to our prospective partners that investors are taking the project seriously.  With our draft lease with the relevant parties awaiting signature, Southill Community Energy is in its strongest position since the share offer was launched. A huge thank you to everyone who has got us this far!

Investment-gets-investment

The ancient 'chicken and egg' causality dilemma is never truer as when raising equity for community projects. We know a lot of investors take the 'wait and see' approach before committing to invest, especially those considering investing a significant sum. However, the project needs investment to reach tipping point and go 'live'.  Reaching 25% is an encouraging milestone for those less confident investors. The Directors have been encouraged by a strong response from investors coming to see us at the recent spate of 'Meet the Director's events. If some of you reading this fall into the 'wait and see' bracket, now's the time to get investing! 

That 5% question... 

We have previously written about the risk of losing 5% . The risk of losing 5% of your investment if the project doesn't go forward only applies if, wait for it, the project doesn't go forward.  We have our debt partners lined up and we have now reached 25% of the equity raise. The draft lease is awaiting signature. We can't offer guarantees here and now, but what we can say with a strong degree of confidence is that this is happening! And every investment makes a huge difference to realising this certainty. 

This is your moment

The next seven days really do represent a crucial last leg in the race to get Southill Community Energy off the ground. With a recent UN report indicating that global investment in renewables, has, for the first time, over taken investment in fossil fuels, and with our very own Prime Minister conceding that renewables will form an essential part of the UK energy mix, we truly are on the brink of being part of a global movement to help secure a cleaner, greener and above all sustainable future. The power is in the hands of investors. 

If you haven't invested yet, now's the time.  every investment, no matter how small, makes a tangible difference to ensuring that community-owned, clean renewable energy becomes a reality in oxfordshire. Are you in?

 

"The impacts of climate change": Geoff

Geoff, from Finstock, has invested in Southill Solar for several reasons. He says he likes that the project is “local and community-owned” and that “profits will benefit local communities.”

However, Geoff is primarily concerned about climate change and what we can do to mitigate its effects.

Climate change worries

He says, “I work in the Department of Geography and Environmental Science at Reading University, with close links to Department of Meteorology. They have been in the vanguard of [climate change] research for many years.”

He’s in an excellent position to understand the environmental benefits that Southill Solar will bring.

5% a year in interest payments + your capital back

Shares in Southill Community Energy will pay 5% in interest a year plus your capital back - take a look at the financial return.

Share offer closes 8 April - still time to act!

Buy Southill Community Energy shares online through Ethex - they are the ethical investment company that handles the share offer. Download our share offer document.

Need more information?

Contact us at any time or call the impartial team at Ethex on 01865 403 304.

"5% a year and a positive social impact": Sue

Sue's invested in Southill Solar. She says, "there aren't many opportunities to make 5% a year on a sum of money AND a positive social impact." Here's why you should invest.

Positive social impact

Southill Community Energy, which is setting up Southill Solar, is a community benefit company which aims to fund local low-carbon projects.

5% a year in interest payments + your capital back

Shares in Southill Community Energy will pay 5% in interest a year plus your capital back - take a look at the financial return.

Share offer closes 8 April - so act now!

Need more information?

Contact us at any time or call the impartial team at Ethex on 01865 403 304.

INVESTOR STORIES| DAN

In which local Charlbury resident speaks of how taking control locally has the capacity to bring about change at a global level.

 

I’m in because I think that community energy is the future - local, renewable and democratic. 

It’s so exciting that communities across the country and the globe are taking control of their own energy generation. Renewable schemes like this one can be a major part of the solution to volatile international energy markets.

And when our so-called leaders say one thing about our responsibility to act on climate change and yet are incapable of putting their money where their mouth is, the obvious answer is to take the power into our own hands.

“The obvious answer is take the power
into our own hands”

It’s true that Southill has been one of the lucky ones to get the higher rate of feed-in tariff before it was slashed. But the fact is that, with the technology advancing and the costs coming down fast, renewables will soon become a no-brainer - with or without government support.

Some people think that these kind of local schemes are reserved for those with lots of disposable income and plenty of time to invest. But the community benefit society is a great leveller. For the minimum investment of £250 you can have the same say in Southill as someone who has invested the maximum £100,000.

As members of Southill Community Benefit Society we will collectively run our own totally clean, green power plant. The rewards will ripple out: from the personal interest payments, to the money available for the community, to the educational potential, to the biodiversity the site will create, to the carbon not emitted.

“To take action locally that, alongside other similar schemes, has a direct effect globally”

To taking action locally that, alongside other similar schemes, has a direct effect globally... Imagine that? It’s a big deal.

Dan lives in charlbury and is a director at new internationalist publications ltd.

Solar Energy | A Safe Bet

Investing in solar is relatively safe and predictable. Solar only needs daylight to generate electricity, a valuable 'commodity'.

Investments in solar show a good rate of return long term and is inflation protected. Als Vowles, technical director at Southill Community Energy, has worked in the community renewables sector for 15 years. As a renewables developer for E.ON and Low Carbon Solar, she has personally led the development of  9 large-scale solar farms. In short, she knows her solar. Here's what she has to say.

Solar Panels at Westmill Solar Farm.

Solar Panels at Westmill Solar Farm.

How renewable energy investments work

In talking to potential investors at various events recently, one of the queries that came up time and time again was around whether or not an investment in solar is particularly risky- not because it's an investment per se (all investments come with some level of uncertainty) but because solar - the sun itself - is 'unpredictable', which therefore imbues solar with an extra level of volatility.

It has highlighted a real 'lag' in understanding in how renewable energy investments actually work.  So I set out to write down why, generally speaking, investment in solar is in fact comparatively safe and predictable, with specific reference to the set up of our proposed site at Southill, Cornbury Park.

Solar only needs daylight

Firstly, solar photovoltaic panels only need daylight and not direct sunlight or heat to generate electricity. In Oxfordshire where Southill Solar Farm is based, we have done a calculation based on the amount of solar radiation hitting the site and its potential to convert this to electrical energy. This figure or “yield” is affected by the panel’s geographical orientation (due south in this case), the module inclination or tilt, the module quality and any losses that it succumbs to as the power is converted via an inverter from direct current to alternating current – the type we need to supply to the grid. The figure that has been chosen has been produced by a specific type of industry report and one that has withstood careful scrutiny by the banks. 

Solar panels have an excellent lifespan

The other thing that we have to take into account when we calculate risk is the panel degradation figure, which is widely understood to be 0.4% per year. This degradation figure has been incorporated into our business model.

Furthermore, unlike many other technologies, there are no "moving parts" in the solar farm and so there is a low risk of anything going wrong. Once the panels are installed and generating electricity, they should continue to do so each day from sunrise to sunset as they stand in the field catching the daylight.

We have also signed up to an annual Operation and Maintenance Contract to carefully monitor the site’s performance on a daily basis. This will make sure that any faults are quickly identified and easily corrected. 

Electricity is a valuable commodity

The site will of course be generating electricity which is an extremely valuable commodity. Unless there is a significant change to the way that energy is generated and used over the next 25 years, it is likely that energy will continue to be in high demand and so we should continue to get a good price for the power. 

Why pension funds love renewables

The low risk nature of solar investments can be demonstrated by Pension fund investment. Pension Fund Managers have been quick to identify the long term predictable income of solar investments and have invested in solar schemes across the UK as a great match for their commitments. An example of this is Lancashire County Pension Fund which invested £12 million in the Westmill Solar Farm in 2013.

Solar investments enjoy a good rate of return over the long term and are inflation protected and so, as well as doing good for the environment, it can be argued that they are superior in financial terms to a traditional high-carbon investment. 

The sun WILL rise tomorrow

So, as long as we continue to believe that it will get light and it will get dark, day in and day out, for the next 25 years – we should see a consistent amount of electricity produced by the site making an investment in solar,  a safe bet.

This is your chance to invest in solar

There is still time to join us and invest in Southill Community Energy. Share offer closes 8th April

Als Vowles, March 2016