Community Energy bencoms respond to Treasury’s suspension of EIS tax relief

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27 projects – from Sussex to the Shetlands and Carmarthen to Cumbria – open to let ethical investors access the 30% tax relief, which will end on 30th November.

10th October – In its October Financial Statement, the Treasury announced that investors seeking to back community-led renewable-energy projects will no longer be eligible for the 30% Enterprise Investment Scheme tax relief, despite it being safeguarded by the chancellor in March.

New data from Mongoose Energy, which helps community cooperatives set up, fund and run local energy projects as an effective business, and the industry trade body Community Energy England, have shown that the cooperatives have responded to ensure ethical investors can still access this 30% tax relief on top of the projected annual returns of between 4 and 11 per cent.

27 cooperatives have launched or are planning launches that seek to close funding on £23.5 million before the 30th November deadline. These projects include wind, solar and hydro energy generation. Solar projects alone, which make up the majority, will create a combined peak capacity in excess of 35 megawatts, deliver over 40GWh of electricity per year and power 10,000 homes with clean energy.

Quotes and table of projects, including capacity, return and funding are below the graphic

Jan-Willem Bode, CEO of Mongoose Energy says: “The Treasury may have made a surprise announcement at the end of last month, but the cooperatives that are in a position to launch have reacted fantastically. And this means there has never been a better time to invest in these ethical-energy projects, be it to support your local area, to build your retirement fund, invest for your children, or simply buy an ethical Christmas gift.”

Emma Bridge CEO of Community Energy England says: “Community energy enables people to take greater control over how energy is generated as well as ensuring wider benefits are fed back to the local area. Schemes offer a range of benefits from reducing energy bills and developing skills to generating revenue in the local economy, as well as the more obvious benefit of encouraging the production of cleaner energy.

Lisa Ashford, CEO of the online positive-investment portal Ethex, says: “We would like to see people investing in the wide range of community renewable schemes Ethex has listed in November to show the groundswell of support for the community energy sector in the UK.

The former energy secretary Ed Davey will host a community energy investment evening, with information on the changes to EIS and how to maximise investments in London on the 10th November. Details are available from the Eventbrite website.

List of projects open for investment:

Solar
City /
county
Co-op Capacity Projected
RoI
Funding
sought
Kent Orchard Solar 5MWp 7% £1m
West
Sussex
Meadow Blue Community
Energy
5MWp 7% £640k
Nottinghamshire Nottinghamshire Community
Energy
5MWp 7% £850k
Wiltshire Wiltshire Wildlife Community
Energy
5MWp 7% £1m
Bath Bath and West Community
Energy
250kWp
solar12kWp
hydro
7% £600k
Swansea Gower
Power
TBC 6.5% TBC
Shropshire Pomona Solar 50kWp
extension
5.85% £70k
Milton
Keynes
Wolverton
Community Energy
TBC 5.5% £815k
Bristol and Somerset Bristol Energy
Cooperative
9.3MWp 5%
pa
£2.8m
Leicestershire Harborough
Energy
5MWp 5% £184k
Edinburgh Edinburgh Solar
Cooperative
1.5MWp 5% £1.4m
Exeter Exeter Community
Energy
300kWp 5% £390k
Shropshire Nadder
Community Energy
440KWp 5% £500k
Maidenhead Maid
Energy
90KWp 4.3% £120k
London South East
London
200kWp 4% £250k
Dorset Dorset
Community Energy
290kWp 7.4% £352k
Devon Teign
Energy Communities
TBC TBC TBC
Somerset Brendon Energy TBC TBC TBC
Hydro
City /
county
Co-op Capacity Projected
RoI
Funding
sought
Cumbria Killington
Hydro
1.8
MWh
4.7% £420k
Highlands Applecross
Hydro
TBC 4% £780k
London Teddington & Ham
Hydro
TBC 3.5% £3.5m
Kinrossshire Rumbling Bridge
Hydro
2.1GWh
(500 homes)
TBC £3.75m
Wind
City /
county
Co-op Capacity Projected
RoI
Funding
sought
Shetland Islands Fetlar
Wind
2x25kW 11.7% £223k
Carmarthenshire Awel Co-op 2.35MW 7% £500k
Perthshire Heartland
Wind
2x250kW 7% £1.8m
Carmarthenshire Carmarthenshire Energy
Community
500kW 5.6% £1.5m
Gloucestershire Mounteneys
and Cherry Rock Wind Turbine
TBC TBC TBC

Additional graphics

Solar array in Sussex (UK)

Solar array in Sussex, graphic courtesy of Blue Meadow Community Energy, which launched its share offer on Monday. Graphic copyright G Parker, Westmill

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