UK’s first council solar bonds sell out early

The UK’s first council solar bonds have sold out a month early after Swindon Community Solar Farm reached its £1.8 million target.

The 5MW solar farm is funded jointly by Swindon Borough Council which is investing £3 million and through bonds sold directly to members of the public.

The bonds, issued by energy investment company Abundance and Swindon Borough Council, offer a 6 per cent rate of return over a 20-year term and during the three-month offer period attracted an average of £18,000 in investment per day.

Abundance managing director Bruce Davis said: “The success of this investment offer has really set a standard for local authorities looking to fund green infrastructure.

“Energy is one area where local authorities have the power to make a difference, engaging and enabling their residents to take positive action and invest in a more sustainable future. We’d also like to see them going beyond solar and fund other infrastructure projects this way.”

Revenues from the solar farm will be raised from selling the electricity generated alongside support from the feed-in-tariff (FiT) subsidy and 65 per cent of distributable profits will go towards funding local community initiatives with the remaining 35 per cent going to the council.

The solar farm was pre-accredited for FiT before government policy changed at the start of the year, making solar project subsidy cuts of up to 63.5 per cent.

Construction of the solar farm has already begun and is due to be completed by the end of June.