How to invest in a local community energy project

Once 361 Community Renewables finds a site which it is confident can be developed and will return a sustainable income over the lifetime of the project, typically 25 years, it will issue a Share Offer Document; this lays out the details of the project including the capital costs, operation and maintenance costs, and the potential income. People are invited to invest in the project by purchasing community shares with a projected interest rate which depends on the financial assessment of the project; can vary depending on the price of electricity; and is typically around 5%. The share offer will also spell out the risks of the investment.

A minimum number of shares that can be purchased is normally set to minimise administration costs; this is normally around £250. A maximum shareholding is set in the regulations for Community Benefit Societies and is currently £100,000.

Community shares are withdrawable and non-transferable, meaning they cannot be sold or traded. Investors become members of 361 Community Renewables, a Community Benefit Society which is a form of co-operative, and can attend annual general meetings and vote on a one-member-one-vote basis.

Members can withdraw their shares at their nominal value when permitted by the directors.