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Frontier Impact Group has been involved in assisting in the development of renewable energy projects across Australia. Recently Frontier Impact Group completed a project that addressed the funding options for communities to build renewable energy projects with a number of partners including the Australian Renewable Energy Agency (ARENA), Clean Energy Finance Corporate, Coaliton for Community Energy, NSW government, Yarra Community Solar, Embark and many others. They have also been exploring the idea of community cooperative models and see the key driver is for communities to use community investors as equity partners in their own projects.
The workshop was hosted by Fiona Lewis from NSW Government Office of Environment and Heritage (OEH) and targeted local councils, community energy groups, NFP organisations and local businesses in the Greater Hunter and Central Coast regions. Presenters included: Jennifer Lauber Patterson and Mal Campbell from Frontier Impact Group and Tom Nockolds from Pingala.
Participants at the workshop
The workshop was supported by the NSW Government Department of Planning and Environment and ARENA and aimed to provide participants with the tools needed to enable community renewable projects to get off the ground quickly with sound economic and environmental outcomes. The workshops sought to provide an in-depth understanding of the Community Renewable Energy Toolkit, which was developed as a guide for developing community solar projects by Frontier Impact Group.
Training was provided to support the use of the toolkit and included:
- Completing the planning and financial assessment of a real project;
- Identify key challenges in securing funding for Community Energy projects and how to overcome them;
- Recognising the steps required to develop large and small-scale Behind the Meter Solar PV projects;
- Managing risks associated with the development of Solar PV Projects;
- Learning how to use and apply the financial model template (spreadsheet) for Behind the Meter Solar PV projects; and
- Understanding the sharing of benefits between host sites and Behind the Meter Solar PV project investors.
The different forms of project funding for community renewable energy projects and factors that affect the choice of funding were described including:
- Equity funding: Retail and wholesale investors, institutional funds/banks (social impact funds), sweat equity and angel investors;
- Debt funding: Retail and wholesale investors, institutional funds/banks, angel investors, corporate balance sheets, and equipment lease companies.
- Grants
- Donations
- In-kind support
Case studies presented included: the Repower Shoalhaven project and Pingala: Young Henrys Project.
The Behind the Meter guidebook details the key project elements of a behind the meter Solar PV project and project phases (concept, prefeasibility, feasibility and final funding phases). The guidebook provides a logical checklist of things that need to be addressed at each phase in the project. This would be a very useful tool for Community Energy projects to help ensure their success.
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From left to right: Chris Harle (LMCC), Jo Muller (Central Coast Community Energy), Alec Roberts (CLEANaS), Tom Nockolds (Pingala), and Thomasen Knight (LMCC)
Lake Macquarie City Council is partnering with Pingala (a Sydney based Community Energy group) to facilitate community financed solar within the Lake Macquarie area.
There was good attendance despite a late change of venue with 5 clubs, and a couple of other businesses and solar vendors in attendance.
Chris Harle, Sustainability Engagement Coordinator, spoke on behalf of Lake Macquarie council on current council initiatives in sustainability and renewable energy.
Alec Roberts (Chair of CLEANaS) gave an introductory talk on community energy and the importance of energy efficiency to be included in community energy projects. Alec also presented on CLEANaS past and present projects undertaken including Hunter Wetlands Solar project.
Tom Nockolds (Pingala Secretary) spoke about Pingala’s successful recent project Young Henrys Project, where Pingala put 115 solar panels on the roof of Young Henrys, a craft brewery in inner-west Newtown. The 29.9kW solar system installed has enabled Young Henrys to produce “solar-powered beer”, and reduce their carbon footprint. Pingala raised finance for the project from the local community at an investor event at the brewery. Investment was through a cooperative share offer which sold out in 9 minutes! Community investors are expected to receive a ROI of between 5%-7% on their investment in the project.
Both CLEANaS and Pingala presentations spoke to what makes a good host site for and why go with community solar. A good host site has:
- high day-time energy demand;
- available roof space with N-NW aspect and good access and safety;
- long term tenure (>10 years);
- well defined and large supporter group;
- good visibility/contribution to region;
- flexible and motivated building owners;
- no access to discounted energy contracts; and
- a project champion within the organisation, that can help galvanise support for the project
Community solar offers businesses an alternative model to private rooftop solar. It not only protects the business against rising electricity prices and generates clean energy on site, community solar helps forge strong relationships with the local community, as members of the local community are often investors in the solar installation.
Therefore, upfront as a business:
- Solar must stack-up for your business;
- Financing should be something that you’re interested in, viz avoiding up-front purchase and other normal financing benefits; and
- You are keen on Community engagement and the marketing opportunity associated with a Community Solar project.
Most clubs that attended had large membership bases and also large electricity bills. Only one already had some solar PV installed but wished to add more if possible. The representatives from the clubs talked about the dramatic increases in electricity bills and effects on their clubs. They also talked about the difficulty of getting impartial advice about installing solar.