A new solar farm could provide clean power to more than 1,300 homes – if it beats the Government’s tax relief deadline at the end of the month.
The site, in Merston, near Chichester, could save 2,028 tonnes of CO2 annually and see £4 million raised for local initiatives over 25 years.
The 5MW solar array will be run by the locally based Meadow Blue Community Energy cooperative, with profits brought back to the community. The cooperative will use the profits to run education programmes that enhance biodiversity and reduce energy poverty.
The cooperative is seeking to raise £640,000, with people able to invest between £500 and £100,000. Investors will receive a projected 7% return per annum and will be eligible for 30% tax relief through the government’s Enterprise Investment Scheme.
The project is among the UK’s final community energy projects eligible to qualify for EIS tax relief.
In October the Chancellor stated this incentive will end on November 30.
To raise funding, the cooperative has announced a share offer scheme that will be open to people across the UK, with funds raised through the ethical crowd-funding website, Ethex.
The Merston Community Solar Farm site already has planning permission and the cooperative aims to keep the land in agricultural use.
The project has the potential to generate a community fund worth up to £4 million over 25 years, which will support local community projects, such as pop-up energy advice campaigns to help reduce the incidence of fuel poverty in the area.
Dave Barton, Director of MBCE and one of the founders of local community energy co-operative Solesco, said: “We hope to work with local groups to promote agricultural good practice on the site.
“Furthermore, if approved by HMRC, it is the best time ever to invest in a community energy project in the UK to benefit from 30% tax relief through the government’s EIS – to be withdrawn from November 30 2015.”
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