£1.1 million solar bond offer now live
Over £485,000 raised so far!
HECE has launched a new solar bond offer to raise up to £1.1million and complete our long-term financing. The solar bond offer will give people the opportunity to get involved in HECE as long-term investors.
The terms of the bond offer are set out in a bond offer document which is available via the Ethex social investment platform.
Our community solar array, made up of over 55,000 solar panels at Drayton Manor Farm on the outskirts of Stratford-upon-Avon, was bought into community ownership in 2018. The community buy-back was funded by two community investment offers which raised £600,000 in community investment alongside £16.5 million of bank loans and social investment.
John Stott, volunteer Director of Heart of England Community Energy said,
“Since commissioned, our solar array has generated 57 million kilowatt hours of electricity from the sun, provided £66,000 of funding to support local environmental and fuel poverty initiatives, and our community investors have been paid interest at 5 to 6% per year as offered in our 2017/18 share and bond offer documents. This latest community bond offer is the last piece in the jigsaw of securing the long-term funding for the solar array.”
HECE’s solar arrays generate over £1.6 million per year in revenue. As well as covering operating and finance costs (including interest and capital repayments to our share and bond investors), we expect to generate at least £3.5 million over the solar farms’ 25-year operating life to support local community initiatives. John Stott adds,
“It has taken years of work by the volunteer board and our advisors but the legacy for local communities makes it worthwhile. Our community solar array will generate green electricity for at least the next 20 years, and income to support our transition to a low carbon future.”
The bond has a term of 15 years paying 4% gross interest annually, but interest payments and return of capital are not guaranteed.
CAPITAL AT RISK - it is important you read the bond offer document in full before deciding whether to invest. If you are not sure, seek independent financial advice.