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Our latest community share and bond offers are now open for investment. We are offering you the chance to invest in shares in BWCE and/or a two year fixed interest bond.

You can download the Bond Offer Document here and the Share Offer Document here. You will be downloading large files so they may take a little time.

We will be holding a series of launch events for this offer – follow the link for more details.

The next events:

There are very limited places available for a chance to meet Directors of the project informally in Bath: Informal meeting (14 June) and Informal meeting (20 June). Both dates start at 7:30.

BOND – The bond is for 2 years with a fixed interest rate of 5.5% a year for members of BWCE and South Somerset Community Energy Society (5% for non-members).

SHARES – We are also offering you the chance to become a member of BWCE by buying shares. The target rate of return on investment in BWCE is 7%. We have paid our our members a 7% a year for the last 4 years.

The money raised will go towards allowing us to take into community ownership a solar array sited a few miles from Crewkerne in Somerset. The array will be capable of generating 5MW of clean energy. The total projected cost of purchasing the Crewkerne solar array will be £5.96 million. The bond and share offer combined will be for £2.63 million with the balance coming from a loan from a commercial lender for £3.33 million.

Advantages to early investors

As the project is fully underwritten we will issue shares and bonds to investors whose applications we have received by 7 June 2016. You start earning interest from the date shares or bonds are issued, within a week of this date. This will give early investors the chance to start earning interest earlier. For information on early investment please see full details in the Offer Document. The full offer will finally close on 12 July 2016 and interest will accrue for all those investing between 7 June and 12 July within a week of the final close date.

And here are 9 good reasons to invest in next offer

How your interest is calculated for the Bond offer

Interest is calculated from the date your bond is issued. There will be 2 issue dates, one for applications received before 7 June, the other at the end of the offer on 12 July. The bond is a 2 year investment with the 5.0/5.5 % interest a year with interest paid annually for 2 years and the capital, or amount invested, repaid at the end of the second year. If you decide to redeem your bond after 2 years you will be repaid your capital and interest earned during the period. You may also have the option to renew your bond for a further period.

How to apply

Before you apply it is important you have read and understood the Offer Document which can be downloaded from this page above. Then, should you decide to continue, go to the Ethex website and apply electronically or complete a paper application which can be found at the end of the Offer Document.

Risk Warning

Investment decisions must only be made on the basis of the offer document and not on information provided in this summary. Your original investment capital may be at risk and any return on your investment depends on the success of BWCE’s business as a whole. You should read the offer document in full, including the risk factors set out in the offer document, and the terms and conditions regarding this offer at Ethex before investing. You should consider taking appropriate financial and other advice before making any investment decision.

South Somerset Community Energy Society

BWCE is working with South Somerset Community Energy Society to help promote the share and bond offers and develop the opportunity for them to buy into the project after year 2. Shareholder members of South Somerset Community Energy Society will also receive the 0.5% bonus.

See the offer documents for more details.

http://www.bwce.coop

Click here to see BWCE’s Annual Reports and past Business Plans.

BROKEN PROMISES
HOW THE GOVERNMENT BROKE ITS WORD TO THE COMMUNITY ENERGY MOVEMENT
In Spring 2015, after a campaign which had clearly demonstrated the many social and environmental benefits that community energy brings to local communities, the Government (i.e. the Treasury) gave repeated written assurances as part of the final stages of the Finance Act that it would give the community energy sector 6 months notice of the removal of Enterprise Investment Scheme (EIS) tax relief, which is vital to the success of many community energy projects.
Since the spring of 2015 the community energy sector has been developing their business plans in the belief that the Government would honour this promise to give a minimum of 6 months notice of any significant tax changes. Community groups across the country, many of them run by volunteers, have been making plans to launch share offers and raise the funds for dozens of clean, renewable community energy projects in reliance on these assurances.
Government statements in March 2016 included:-
 The Budget Statement of March 2015:-
“2.77 Venture capital schemes: renewable energy – As announced at Autumn Statement 2014, companies benefiting substantially from subsidies for the generation of renewable energy will be excluded from also benefiting from EIS, SEIS and VCTs with effect from 6 April 2015, with the exception of community energy generation undertaken by qualifying organisations which will in future become eligible for the Social Investment Tax Relief (SITR). The government will allow a transition period of 6 months following state aid clearance for the expansion of SITR before eligibility for EIS, SEIS and VCT is withdrawn. (Finance Bill 2015) (y)” (paragraph 2.77)
 To coincide with the Budget Statement the Treasury published a background document1 with more details of the changes which confirmed that
“Budget 2015 announced the transitional provisions for community energy organisations moving from the tax-advantaged venture capital schemes to SITR. Provisions to exclude all community energy organisations from EIS, SEIS and VCT will take effect 6 months after the confirmation of state aid approval for the expansion of SITR. Qualifying community energy organisations will be able to use SITR from that date. Co-operatives and other non-qualifying organisations that benefit substantially from subsidies for the generation of renewable energy will no longer be eligible for tax-advantaged investment under the schemes once the transition period has elapsed.”
1 Overview of Tax Legislation and Rates HM Treasury and HM Customs and Excise March 2015 e
 Leading members of the CE sector also received email assurances from a Treasury Official 2 on 18 March stating that
“To provide a smooth transition from the venture capital schemes to SITR, the Government announced in Budget 2015 that all community energy organisations will continue to qualify for the venture capital schemes for 6 months following EU state aid clearance of a larger SITR scheme. This provides a reasonable period for adjustment and more certainty to affected groups.”
 A statement to the same effect that there would be 6 months notice was also made by the Chief Secretary to the Treasury in response to a written parliamentary question submitted by Roger Godsiff MP in March 20153.
The Government also announced during the same debate that community energy organisations will not be eligible for Social Investment Tax Relief when state aid approval is received. This represents a second broken promise. No proper explanation has been given for this abrupt change of policy.
The changes have come as a seismic shock to community groups, large and small, up and down the UK. They are causing particular turmoil with existing community share offers which were open and due to run beyond 29 November. The Government seems to have completely disregarded the fact that many community energy projects are social enterprises and just like any other business they need financial and regulatory certainty and stability. This U-turn by the Government has already caused the failure of a number of share offers and projects5. Many community groups are now launching share offers at short notice in an attempt to complete excellent projects which will not only contribute to reductions in carbon emissions but also generate generous community benefits.
CEE also believes that these tax relief changes will have a potentially devastating impact on the pipeline of projects due to be launched in the next six months. Tens of thousands of pounds has already been spent at the development stage of these projects on items such as feasibility studies, planning, structural surveys, legal fees and EPC certificates. Projects affected include a large number to install rooftop solar on schools and other community buildings which are the type of installations which once upon a time the Government actively supported6. Financial margins are tight and without the benefit of tax relief the organisers of many projects are feeling very apprehensive and think they will struggle to raise the capital required.
Community Energy England November 2015

WHAT DO YOU THINK >>>>>have your say on our comments

Would your organisation benefit from installing renewable energy ? 3 steps that could make it possible.

Step One, find a suitable funding partner

We believe across Dorset and neighbouring Counties there are numerous sites suitable for installation of wood heat boilers, photovoltaics or other renewables were the site owner would like an installation but can’t afford it or doesn’t have the capacity to arrange. Many of these can loosely be described as community sites. Village Halls, schools, British Legions, scout huts, churches etc.

So we set up a Community Energy Society to help. We registered with the Financial Conduct Authority as Energize Stur Valley Industrial and Provident Society Ltd. We can plan, project manage and raise a local share issue to fund projects. The project host gets reduced energy costs and the investors get more than 5% interest and their original investment returned over 20 years with a 30% tax rebate in the first year on their investment.

The IPS is not for profit but because we believe passionately that renewable energy should be installed to replace fossil fuels wherever possible and benefit the community.

Step Two

With the help of a local installer we discuss and outline the potential project and together cost and create a potential revenue stream.

Step 3

This then allows us to create a share offer that offers a fair rate of return over 20 years, money back on the initial investment, tax incentives for the shareholders. Substancial energy cost saving for the project host and in some cases even a share of the revenue stream.

Let us have your comments even requests on how to get started:
stur.transitiontown1@gmail.com

There is much talk about Community Energy and the opportunities that will open up this way of bringing local communities together with energy creation.

The results can be startling, as an example Balcombe in Sussex. This quiet sleepy village became a conflict zone when locals and activists decided to fight test drills being made for Fracking. No one nationally really wants anything to do with fracking but Balcombe stood firm.

After days of blockade, arrests of good people and true the drillers finally went away and guess what, out of the battle came a new energy, Community Energy.

The local people formed into a group to develop their own energy schemes and almost overnight had their first project, fully funded, installed and creating clean energy and reasonable returns for the investors.

Its this sort of lead that will ultimately inspite people everywhere to create their own schemes. I Chair ESVIPS.com and we have installed our first solar project at Springhead Trust, Fontmell Magna and hope to have others up and running later this year.

Getting a fair price for the energy being created is important and I wanted to share a link with you to Ovo an innovative renewable energy supplier.

Its: http://www.ovoenergy.com/energy-plans/communities/

Ovo are the first Company to offer to offer the local people near a project the chance to but their own local energy at really advantageous prices far below the market norms.

The result will be that community energy can use a majority of its generation to the advantage of the local people bringing down their overall energy costs and giving them a real stake in whats happening in their own locality.

Go to the site and see what you think.

http://us10.campaign-archive1.com/?u=e6e9a90ecb6b91dd5cbe82f4d&id=370cba09f7&e=ca745227ad

The Village that stood up against Fracking is now forging ahead with its own Community Energy Projects. How can we all help its simple talk to your local Community Energy Groups they are nationwide and wanting you support and help on all fronts. We really can make these projects happen with your help its a win for you, its a win for the Local and its a win for the Planet, doesn’t that feel good.