A crowd-funded solar and battery storage plant being developed in the central western New South Wales city of Orange has opened the door to investors from outside of the local community, with anyone in Australia now able to buy a stake in the project.
The 4.99MW solar and 4.99MW/5.2MWh battery Orange Community Renewable Energy Park is being developed by ITP Renewables around 6km north-west of the town centre of Orange on the Essential Energy grid, after getting the all-clear in March of last year.
The group behind the crowd-funding part of the project, Energy Democracy’s Central West NSW Co-operative, owns a 44% share in the solar farm that it bought with the help of grant funding from the NSW government’s Regional Community Energy Fund.
In April, just under 1000 parcels of shares were opened up to co-op members, offering 2.5kWh of solar and 2.5kWh of battery storage for $4995.
And while community uptake has been strong – OCREP has been “one of the fastest raises to date for a community renewable energy project in Australia,” according to its developers – changes to the investment structure hope to broaden the investor base.
Namely, the board of the Central West NSW Co-operative has resolved to reduce the minimum share purchase from 5000 shares for $4995 to 1000 shares for $999; lowering the financial barrier to investment to cater to smaller investors.
A second key change is that shares have been opened up to investors from anywhere in Australia, in response to patterns in investor demand.
“It has been apparent since [April] that the community are purchasing multiple share parcels for investment return rather than to offset their electricity consumption,” a statement from OCREP said.
“Members across the country can take advantage of the opportunity to make an ethical investment to reduce the impact of climate change. Investors will benefit from returns of 8% to 12% per annum for the 25+ year lifetime of the project in the form of dividends.”
Granton Smith, the Chair of the Central West NSW Co-op, said that the majority of members to date had been from the Orange region, highlighting local support from individuals, households and small businesses, as well as investors with self-managed super funds.
“The effects of climate change will be felt by us all, and it’s up to individuals to contribute,” said Smith. “Membership in the Co-operative provides a tangible opportunity to participate in the renewable energy transition that is currently underway to offset emissions in a carbon-intense electricity grid.”
Construction of the Orange Community Renewable Energy Park is due to be completed by the end of Q2 2022 and is expected to take three months.
To learn more about the Orange community renewable energy project, visit www.energydemocracy.net or email info@energydemocracy.net.
Sophie is editor of One Step Off The Grid and editor of its sister site, Renew Economy. Sophie has been writing about clean energy for more than a decade.
