We have already secured £160k of feasibility and development funding from Homes England, MyLocality, South Hams Community Led Development and the Rural Community Energy Fund for the planning stages.
This type of innovative development will have a higher capital cost than an equivalent development from a typical commercial house builder, as it includes energy, storage and transport assets. However, it will have much lower operational expenditure, in terms of energy requirements, repair and renewals, due to the initial build quality and the onsite energy generation and storage.
SDCE directors have extensive experience of developing and financing large renewable energy schemes and experience in developing community housing schemes in other areas of the UK. The financing of this scheme will be approached in the same way as a community energy project would be. We will seek non-recourse debt finance at favourable interest rates from a suitable lender or lenders and the remainder of the capital will be raised through a community share offer.
Capital costs will be raised through a community share offer, enabling local people to invest in the scheme, as well as bank finance. The rental income from the homes and EVs, and the selling of energy will provide a long term income stream to cover the maintenance costs of the site and to provide a return on investment for shareholders. Any surplus income will be allocated to a Community Benefit Fund which would provide grants to grassroots community sustainability initiatives.
We're working with Communities for Renewables, to help us finance the project.