A community-based renewable energy funding venture has installed 35kW solar PV around Australia, with the completion of its latest project this week at Camden Park in South Australia.
Citizens Own Renewable Energy Network Australia (CORENA) is a not-for-profit organisation that was set up to help provide a means to collectively fund renewables and energy efficiency projects that wouldn’t otherwise attract financial support.
Using its innovative revolving funding model (see diagram below) CORENA has provided interest-free loans to finance Quick Win projects for four non-profit organisations in three states: Tulgeen Disability Services in Bega (NSW), Gawler Community House (SA), Beechworth Montessori School (Vic), and Camden Community Centre (SA).
In total, CORENA has raised $58,771.69 for Quick Win projects. The next project in line, in Nannup (WA), is already half-funded, and a community centre in Ravenshoe (Qld) is queued as Project 6.
“After just four projects the growth potential of our revolving funding model is looking quite exciting,” said CORENA spokesperson Margaret Hender.
“The four projects completed so far have cost a total of $63,460. Climate-concerned citizens donated most of that, but $10,438 of it came from loan repayments from completed projects.”
The loans are repaid over about five years out of the resultant savings on power bills, meaning that non-profit organisations can reduce their carbon emissions without diverting funds from their core
purpose.
As the projects ‘pay for themselves’, the original donations are then used over and over again in new projects.
“The first project was funded entirely from donations, but already $5,000 of that loan has been paid
back into the revolving pool of funds,” said Ms Hender. “As the number of completed projects
increases, an increasing proportion of the cost of new projects is covered by loan repayments.
Eventually the revolving loan repayments will cover 90%, or even 100%, of the cost of new projects.”
As CORENA’s website explains, these community projects will eventually become self-funding due to the way the donated funding pool revolves.
“A funding pool of around $210,000 will fund one new community solar project every three months. If supporters continue to contribute till there is around $630,000 in the funding pool, that will fund one new project every month, forever,” is sayd.
The group has also revealed plans for its first Big Win project: to build Australia’s first citizen-funded and owned solar thermal plant with storage.
This campaign, says CORENA, aims to connect the 50,000-odd people who regularly turn up at climate rallies and the like with the opportunity to invest in the solar thermal plant.
“The idea is that if 50,000 people chip in an average of $100 each, or set up smaller recurring contributions, we’d soon have the $5 million we need for Stage 1 of the project,” a CORENA spokesperson told RenewEconomy.
“I could talk to politicians until I’m blue in the face in the hope of getting better renewable energy policies, and never know if I’ve had any effect,” said Hender in a statement on Monday.
“But if I put $100, or $10 a week, for example, into solar panels on a roof somewhere, within a matter of weeks my money will be reducing carbon emissions and keep on doing so forever as it is used again and again in future
projects.”
This article was first published at RenewEconomy.
Sophie is editor of One Step Off The Grid and deputy editor of its sister site, Renew Economy. Sophie has been writing about clean energy for more than a decade.
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Here is how this works, it funds projects in the first place from donations, then the payback from that money creates a money pool which is then put into another project which again pays back toward the fund.
Because there is no fee being taken out this will of course work very well because of the inherent advantage of using free energy input into the investment.
This also works because there is no management fee being taken out which may be as high as 20% of the incoming in the usual business practise.
I just say yes you have started small but you will grow due to the very simple business plan you have created.
This of course could have been done by the retailers of energy however due to myopic vision you have filled the void.
I am encouraged by your enthusiasm and yes it is possible that in a few years you may have sufficient support to fund more ambitious projects but proceed cautiously so you do not fail please.
This initiative has huge potential to get more solar on roofs. Arguably one of the biggest factors holding it back is the cost of PV for lower income households and this schem will potentially overcome this barrier although the scheme will be initially held back by funding constraints which will ease with increasing takeup.
It deserves to be widely publicized!
Tulgeen is reported to be very proud that it was CORENA project #1, and is now extending its original system to increase its savings from not having to purchase electricity. Thus it is freeing up real dollars to provide increased good outcomes for its people with disability.