In a joint statement the companies said they plan to offer solar panels to local government sites, including schools and town halls, by inviting members of the community to invest in the project by purchasing shares. The companies add that the solar panels could save up to 40% on electricity bills, while the government feed-in tariff for the solar power generated could be re-invested in community projects.
“Social Finance will raise up to £60 million of the institutional loan capital to finance the pipeline,” the companies said, adding: “Alongside this, members of the community will be able to invest in the solar projects by purchasing shares and will receive a fair financial return, in addition to social and environmental benefits.”
The community scheme is a first for British Gas, but Social Finance have used a similar model to provide free usage of daytime solar energy for social housing in Sunderland, raising a £10 million loan for Empower Community.
British Gas Solar, a part of British Gas, will act as contractor for the installation of the projects while Gen Community will manage the projects, coordinating with local authorities and community organisations. Last year, Gen Community installed over 200kWp of solar photovoltaic on fuel poor homes in Newport and South Wales which was also funded by a community share offer.
Head of sustainable communities at Social Finance Richard Speak, said: “Community energy deals can act as a catalyst for mainstream investment markets to align financial returns with tangible social impact. These deals help alleviate fuel poverty for our poorest households and bring the financial benefits back into the communities.”