Heart of England Community Energy has funding available to help local schools and community buildings install solar PV under two finance models which guarantee savings with no upfront cost, and create a long-term legacy fund for our communities.

Solar Soft Loans for community building PV

HECE’s Solar Soft Loan offer helps community organisations and local councils to install rooftop solar panels with no upfront cost, no roof lease and no long-term commitment to a power purchase price. You own the system from day one, benefit from lower energy bills and can earn from any surplus electricity exported to the grid. The repayment of the Solar Soft Loan is based on a share of the actual cost savings and all repaid funds are reinvested into a local low-carbon fund to help more local schools and community buildings go green.

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How does it work?

 
1.    HECE provides a 'Solar Soft Loan' to the community building to pay for a solar PV system. HECE can offer support with feasibility assessments and can assist in procuring and managing installers if needed.

2.    The community building owns the solar system and is responsible for its maintenance. Solar electricity generated is free for the community building to use. The community building will save money as kWhs of solar electricity generated and used on-site will reduce kWhs bought from suppliers. The community building will also earn an income from selling surplus solar electricity to the grid (export income).

3.    Repayments will be made only on the basis of actual net savings each year. Payments will be based on 50% of the actual net savings each year, after an allowance for maintenance costs. e.g. if the community building saves £1,000, the loan repayment will be £500.

4.    If the savings are less than expected (e.g. the community building uses less electricity, power prices drop or there is less sunlight), the Solar Soft Loan repayments will reduce and the loan will be repaid slower. If the loan amount (plus inflation) is not repaid after 20 years, the outstanding balance will be written off.

5.    HECE recoups the loan over time to re-invest into a local low carbon revolving loan fund to help other schools and community buildings go green. 

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PPA offer for school PV

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Schools are currently not allowed to borrow which means we can’t use our Solar Soft Loan model for school solar. Instead, HECE offers funding for school solar via a Power Purchase Agreement (PPA). The PPA is based on a discount to the price the school pays for power supplied from the grid, so a saving is guaranteed.

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How does it work? 

1.    HECE enters into a roof lease arrangement with the school and installs solar panels on the school roof at no upfront cost to the school. 

2.    HECE owns the solar panels and is responsible for maintenance costs. 

3.    Solar electricity used by the school as it is generated is sold to the school via a PPA. The PPA price is set at a discount (e.g. 20-30%) to the school’s going rate for electricity supplied from the grid so a saving is guaranteed. 

4.    HECE earns additional income from the sale of surplus electricity to the  grid.

5.    At the end of 20 years HECE will remove the solar panels or donate them to the school.

6.    HECE will re-invest any surplus income generated into a local low carbon revolving loan fund and help other schools and community buildings do the same as you. 

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The roof lease requires the consent of the Academy Trust (if applicable), council and Dept of Education.