Leapfrog Finance and Communities for Renewables C.I.C. are delighted to share the news of a successful community re-finance of a 5MW solar farm by Ferry Farm Community Solar Ltd.
Ferry Farm Community Solar, a local energy enterprise which serves the West Sussex communities of Selsey and Sidlesham has completed a £5.5million transaction to bring a 5MW solar array into full community ownership. The solar array has been up and running since 2016 and generates enough clean energy to power approximately 1,300 homes per year. Ferry Farm Community Solar is supported by Communities for Renewables CIC. More details can be found in this.
The transaction was funded by a loan from Leapfrog Bridge Finance. A further opportunity for the community to invest in the enterprise will come later this year.
Surplus income generated by Ferry Farm Community Solar (around £50,000 per year since inception) has been used to support:
- An energy and fuel poverty advice service, helping individuals and families living in fuel poverty reduce their energy spend, maintain a healthy living environment in their homes, deal with energy debts and access energy-related benefit payments.
- a community grant fund, supporting local organisations and projects in Selsey and Sidlesham.
Immediately following completion of the transaction Ferry Farm Community Solar launched a £40,000 Corona Crisis fund to support local people facing hardship due the outbreak, shut down and likely recession.
Louisa Cilenti, Partner at Lux Nova - legal advisors for the transaction, said: “We are delighted to have supported Leapfrog to finance the acquisition of Ferry Farm Community Solar Project, to enable this FiT-backed 5MW solar park to remain in long-term community ownership and under community management. It is testament to the expertise and commitment of the Leapfrog finance team and the strength of their relationship with community developer and asset manager CfR that acquisition terms could be structured to meet the commercial requirements of Triple Point whilst preserving significant cash surpluses over the life of the project to directly benefit local community initiatives. We continue to be filled with optimism that we will emerge from the COVID-19 pandemic with a stronger focus on the value of communities and the enabling role of social finance to advance a bigger societal mission and positive social impact.”
Matt Andrews, Director of Project Finance at Leapfrog Group said: “Leapfrog Bridge Finance is delighted to support another community with its’ transition to a carbon neutral future whilst at the same time generating significant social impact. Working closely with our professional advisors Lux Nova Partners, Johnston Carmichael Chartered Accountants & Green Cat Renewables we were able to complete the funding during a period of intense uncertainty for the country and its communities. The funds already being distributed locally to help combat the impact of the coronavirus demonstrate how local energy enterprises can support their community’s resilience.”
Tom Cosgrove, of Communities for Renewables CIC, who managed the transaction for Ferry Farm Community Solar said: ‘behind the scenes a huge amount of work goes into a transaction like this from the borrower, funder and the advisory team. It has taken us 6 months to get through the finance process and several months of negotiations prior to that. To complete the transaction in the midst of the lock down is a credit to all parties and shows how important it was to everyone to get it done and enable the enterprise to mobilise the Corona Crisis Fund.’