community generation fund - Regensw
COMMUNITY GENERATION FUND SUPPORT FOR
COMMUNITY-OWNED RENEWABLE ENERGY TO CREATE
SOCIAL IMPACT
© FSE C.I.C. This document and its contents remain the exclusive property of FSE C,I,C. and must not be circulated, replicated or utilised by other parties unless with the prior written consent of FSE C.I,C,
Community Generation Fund THE FSE GROUP SOCIAL ENTERPRISE: Community Interest Company (C.I.C.) FSA- AUTHORISED FUND MANAGER: “FSE Fund Managers Limited” EXPERIENCED TEAM : Finance professionals with commercial track records BLENDED SOCIAL ETHOS : Delivering financial and social objectives EARLY STAGE FUNDING EXPERTS : Creative, flexible, equity and debt SOCIAL AND BUSINESS FUNDS UNDER MANAGEMENT www.thefsegroup.com
Community Generation Fund NATIONAL ENERGY FOUNDATION LEADING INDEPENDENT NGO / CHARITY: Established 1990 ADVICE & TRAINING: Training, advisory services & technical support CERTIFICATION: Carbon Trust Standard & Green Energy Certification Scheme PROGRAMME MANAGEMENT: Research, collaborative projects COMMUNITIES: Playing an active role in co-ordination of new and growing sector: • • •
Community Energy & Practitioners Forum Communities & Climate Action Alliance Local United (Social Enterprises)
www.nef.org.uk
Community Generation Fund THE FSE GROUP
NATIONAL ENERGY FOUNDATION
FUND MANAGEMENT
STRATEGY ADVICE
LOAN APPRAISAL
INVESTMENT READINESS
LOAN MONITORING
APPLICATION SUPPORT
RELATIONSHIP MANAGEMENT
SHARED
MENTORING
EXPERTISE
SIGNPOSTING
ETHOS COMMUNITY EMPATHY SUPPORT LAUNCH INVESTORS:
BIG SOCIETY INVESTMENT FUND ESMEE FAIRBAIRN FOUNDATION
Community Generation Fund WHAT IS IT? NATIONAL FUND FOR
COMMUNITY-LED RENEWABLE ENERGY ENTERPRISES **Catalyse community projects: help to resolve key funding challenges** PROVIDING LOANS FOR
DEVELOPMENT (PRE-PLANNING) + CONSTRUCTION COSTS **Money where it is needed: empowering community ownership**
ALONGSIDE SUPPORT NETWORK **Reach out to all communities: Focus on disadvantaged**
TO CREATE LASTING SOCIAL IMPACT **Environmental + Social + Financial Legacy**
Community Generation Fund WHAT IS IT NOT? CHEAP OR NIL-COST LOAN **Aim is to supplement, NOT undercut, existing funding sources**
GRANT **Although Development Loans are contingently repayable**
EQUITY INVESTMENT **Long-Term Ownership benefit stays with the community**
AN UNLIMITED POOL OF FUNDS **Build Fund size over time: manage capacity meantime**
Community Generation Fund WHAT DOES IT SOLVE? FIT and RHI’s ARE GOOD......... BUT PROJECTS STILL NEED UPFRONT FINANCE FUNDING BARRIERS PRE-PLANNING
=
No bank appetite, grants declining, stop/start funding profile
CONSTRUCTION = Bank appetite but “loan to value” gap, community fund-raising threshold
Community Generation Fund HOW DOES IT HELP SOLVE PROBLEMS? FINANCIAL CREATIVE FUNDING PRE-PLANNING
=
CONTINGENTLY-REPAYABLE BRIDGING LOAN
POST-PLANNING
=
TERM LOAN (FLEXIBLE TERMS): possibly alongside bank
LOCAL SCALE
=
“SMALL-MEDIUM” SCALE PROJECTS (25kWp+)
BENEFICIAL
=
OWNERSHIP STAYS WITH THE COMMUNITY
Community Generation Fund LOAN PROFILE : DEVELOPMENT
PURPOSE
:
FUND EXTERNAL “PRE-PLANNING” COSTS
AMOUNT
:
TYPICALLY £10-100,000: MAX 75% OF COSTS
REPAYMENT
:
CONTINGENTLY REPAYABLE BRIDGING LOAN If project does not proceed = loan falls away (community liability waived)
If project proceeds = repayment in full + premium (Fund drawdown)
PRICING
:
PREMIUM: PAYABLE ON ‘SUCCESS’ ONLY Typically 25-100% of Loan Amount
RESPONSIBLE SUPPORT
Community Generation Fund LOAN PROFILE : CONSTRUCTION
PURPOSE
:
CLOSE THE GAP BETWEEN “BANK” SUPPORT + TOTAL COST
AMOUNT
:
TYPICALLY £100,000 - £1,000,000: MAX 75% OF “GAP” [Note: Size of individual loans dependent on scale of fund]
REPAYMENT
:
LOAN TERM: 10-15 YEAR Bespoke repayment profiles: refinancing, break options, etc
PRICING
:
6-10% P/A (mix of cash + deferred) + EXIT FEE (deferred loans only)
CONTROL
:
STANDARD SECURITY + CONDITIONS (project-finance)
REDUCE THE FUNDING GAP MAKE PROJECTS REACHABLE
Community Generation Fund WHO IS THE CGF FOR? COMMUNITIES NATIONAL: Any location within UK
1st TIMERS + REPEAT COMMUNITIES: Foster knowledge retention + sharing DISADVANTAGED COMMUNITIES: Focus on the top 50% of deprived locations
PROJECTS ELECTRICITY GENERATION: PV, Hydro, Wind, A.D HEAT GENERATION: Solar thermal, Biomass COMMUNITY SCALE: 25kWp+ IMPACT: Community ownership and clear social benefit
COMMUNITY OWNERSHIP COMMUNITY LEGACY
Community Generation Fund 1st CALL FOR PRE-APPLICATIONS LOAN TYPE
Construction
Development
NOTE : Figures are illustrative only to demonstrate debt-fund dynamics. These figures do not demonstrate actual project financial performance for any project, which will vary for each project circumstances.
Community Generation Fund 1st CALL FOR PRE-APPLICATIONS PROJECT LOCATION: All projects Wales England Scotland N. Ireland
NOTE : Figures are illustrative only to demonstrate debt-fund dynamics. These figures do not demonstrate actual project financial performance for any project, which will vary for each project circumstances.
Community Generation Fund 1st CALL FOR PRE-APPLICATIONS TECHNOLOGY: All projects
Hydro Wind AD/CHP Biomass PV Other
NOTE : Figures are illustrative only to demonstrate debt-fund dynamics. These figures do not demonstrate actual project financial performance for any project, which will vary for each project circumstances.
Community Generation Fund 1st CALL FOR PRE-APPLICATIONS TECHNOLOGY: Development loans
Hydro Wind AD/CHP Biomass Other
NOTE : Figures are illustrative only to demonstrate debt-fund dynamics. These figures do not demonstrate actual project financial performance for any project, which will vary for each project circumstances.
Community Generation Fund 1st CALL FOR PRE-APPLICATIONS TECHNOLOGY: Construction loans Hydro Wind Biomass PV
NOTE : Figures are illustrative only to demonstrate debt-fund dynamics. These figures do not demonstrate actual project financial performance for any project, which will vary for each project circumstances.
COMMUNITY GENERATION FUND Jon d’Este-Hoare
The FSE Group [email protected]
©Finance South East Ltd This document and its contents remain the exclusive property of Finance South East Ltd and must not be circulated, replicated or utilised by other parties unless with the prior written consent of Finance South East Ltd
COMMUNITY-OWNED RENEWABLE ENERGY TO CREATE
SOCIAL IMPACT
© FSE C.I.C. This document and its contents remain the exclusive property of FSE C,I,C. and must not be circulated, replicated or utilised by other parties unless with the prior written consent of FSE C.I,C,
Community Generation Fund THE FSE GROUP SOCIAL ENTERPRISE: Community Interest Company (C.I.C.) FSA- AUTHORISED FUND MANAGER: “FSE Fund Managers Limited” EXPERIENCED TEAM : Finance professionals with commercial track records BLENDED SOCIAL ETHOS : Delivering financial and social objectives EARLY STAGE FUNDING EXPERTS : Creative, flexible, equity and debt SOCIAL AND BUSINESS FUNDS UNDER MANAGEMENT www.thefsegroup.com
Community Generation Fund NATIONAL ENERGY FOUNDATION LEADING INDEPENDENT NGO / CHARITY: Established 1990 ADVICE & TRAINING: Training, advisory services & technical support CERTIFICATION: Carbon Trust Standard & Green Energy Certification Scheme PROGRAMME MANAGEMENT: Research, collaborative projects COMMUNITIES: Playing an active role in co-ordination of new and growing sector: • • •
Community Energy & Practitioners Forum Communities & Climate Action Alliance Local United (Social Enterprises)
www.nef.org.uk
Community Generation Fund THE FSE GROUP
NATIONAL ENERGY FOUNDATION
FUND MANAGEMENT
STRATEGY ADVICE
LOAN APPRAISAL
INVESTMENT READINESS
LOAN MONITORING
APPLICATION SUPPORT
RELATIONSHIP MANAGEMENT
SHARED
MENTORING
EXPERTISE
SIGNPOSTING
ETHOS COMMUNITY EMPATHY SUPPORT LAUNCH INVESTORS:
BIG SOCIETY INVESTMENT FUND ESMEE FAIRBAIRN FOUNDATION
Community Generation Fund WHAT IS IT? NATIONAL FUND FOR
COMMUNITY-LED RENEWABLE ENERGY ENTERPRISES **Catalyse community projects: help to resolve key funding challenges** PROVIDING LOANS FOR
DEVELOPMENT (PRE-PLANNING) + CONSTRUCTION COSTS **Money where it is needed: empowering community ownership**
ALONGSIDE SUPPORT NETWORK **Reach out to all communities: Focus on disadvantaged**
TO CREATE LASTING SOCIAL IMPACT **Environmental + Social + Financial Legacy**
Community Generation Fund WHAT IS IT NOT? CHEAP OR NIL-COST LOAN **Aim is to supplement, NOT undercut, existing funding sources**
GRANT **Although Development Loans are contingently repayable**
EQUITY INVESTMENT **Long-Term Ownership benefit stays with the community**
AN UNLIMITED POOL OF FUNDS **Build Fund size over time: manage capacity meantime**
Community Generation Fund WHAT DOES IT SOLVE? FIT and RHI’s ARE GOOD......... BUT PROJECTS STILL NEED UPFRONT FINANCE FUNDING BARRIERS PRE-PLANNING
=
No bank appetite, grants declining, stop/start funding profile
CONSTRUCTION = Bank appetite but “loan to value” gap, community fund-raising threshold
Community Generation Fund HOW DOES IT HELP SOLVE PROBLEMS? FINANCIAL CREATIVE FUNDING PRE-PLANNING
=
CONTINGENTLY-REPAYABLE BRIDGING LOAN
POST-PLANNING
=
TERM LOAN (FLEXIBLE TERMS): possibly alongside bank
LOCAL SCALE
=
“SMALL-MEDIUM” SCALE PROJECTS (25kWp+)
BENEFICIAL
=
OWNERSHIP STAYS WITH THE COMMUNITY
Community Generation Fund LOAN PROFILE : DEVELOPMENT
PURPOSE
:
FUND EXTERNAL “PRE-PLANNING” COSTS
AMOUNT
:
TYPICALLY £10-100,000: MAX 75% OF COSTS
REPAYMENT
:
CONTINGENTLY REPAYABLE BRIDGING LOAN If project does not proceed = loan falls away (community liability waived)
If project proceeds = repayment in full + premium (Fund drawdown)
PRICING
:
PREMIUM: PAYABLE ON ‘SUCCESS’ ONLY Typically 25-100% of Loan Amount
RESPONSIBLE SUPPORT
Community Generation Fund LOAN PROFILE : CONSTRUCTION
PURPOSE
:
CLOSE THE GAP BETWEEN “BANK” SUPPORT + TOTAL COST
AMOUNT
:
TYPICALLY £100,000 - £1,000,000: MAX 75% OF “GAP” [Note: Size of individual loans dependent on scale of fund]
REPAYMENT
:
LOAN TERM: 10-15 YEAR Bespoke repayment profiles: refinancing, break options, etc
PRICING
:
6-10% P/A (mix of cash + deferred) + EXIT FEE (deferred loans only)
CONTROL
:
STANDARD SECURITY + CONDITIONS (project-finance)
REDUCE THE FUNDING GAP MAKE PROJECTS REACHABLE
Community Generation Fund WHO IS THE CGF FOR? COMMUNITIES NATIONAL: Any location within UK
1st TIMERS + REPEAT COMMUNITIES: Foster knowledge retention + sharing DISADVANTAGED COMMUNITIES: Focus on the top 50% of deprived locations
PROJECTS ELECTRICITY GENERATION: PV, Hydro, Wind, A.D HEAT GENERATION: Solar thermal, Biomass COMMUNITY SCALE: 25kWp+ IMPACT: Community ownership and clear social benefit
COMMUNITY OWNERSHIP COMMUNITY LEGACY
Community Generation Fund 1st CALL FOR PRE-APPLICATIONS LOAN TYPE
Construction
Development
NOTE : Figures are illustrative only to demonstrate debt-fund dynamics. These figures do not demonstrate actual project financial performance for any project, which will vary for each project circumstances.
Community Generation Fund 1st CALL FOR PRE-APPLICATIONS PROJECT LOCATION: All projects Wales England Scotland N. Ireland
NOTE : Figures are illustrative only to demonstrate debt-fund dynamics. These figures do not demonstrate actual project financial performance for any project, which will vary for each project circumstances.
Community Generation Fund 1st CALL FOR PRE-APPLICATIONS TECHNOLOGY: All projects
Hydro Wind AD/CHP Biomass PV Other
NOTE : Figures are illustrative only to demonstrate debt-fund dynamics. These figures do not demonstrate actual project financial performance for any project, which will vary for each project circumstances.
Community Generation Fund 1st CALL FOR PRE-APPLICATIONS TECHNOLOGY: Development loans
Hydro Wind AD/CHP Biomass Other
NOTE : Figures are illustrative only to demonstrate debt-fund dynamics. These figures do not demonstrate actual project financial performance for any project, which will vary for each project circumstances.
Community Generation Fund 1st CALL FOR PRE-APPLICATIONS TECHNOLOGY: Construction loans Hydro Wind Biomass PV
NOTE : Figures are illustrative only to demonstrate debt-fund dynamics. These figures do not demonstrate actual project financial performance for any project, which will vary for each project circumstances.
COMMUNITY GENERATION FUND Jon d’Este-Hoare
The FSE Group [email protected]
©Finance South East Ltd This document and its contents remain the exclusive property of Finance South East Ltd and must not be circulated, replicated or utilised by other parties unless with the prior written consent of Finance South East Ltd
