Ferry Farm Community Solar, a local energy enterprise which serves the West Sussex communities of Selsey and Sidlesham, completed a part-refinancing with Triodos Bank in October 2020, followed by a full refinancing through a community bond offer in December 2020.
The solar array has been up and running since 2016 and generates enough clean energy to power approximately 1,300 homes per year. Ferry Farm Community Solar is supported by Communities for Renewables CIC.
This successful refinancing follows on from the original acquisition financing in March 2020, on which we reported here.
The transaction was originally funded by a loan from Leapfrog Bridge Finance, advised by Lux Nova. The senior part-refinancing achieved by Triodos Bank in October 2020 represented the next step in the journey for this community solar asset, further increasing the significant income stream to the local community. Triodos were advised by CMS. Ferry Farm Community Solar were advised by Stephens Scown.
Since the original acquisition financing, Leapfrog have been acquired by Social and Sustainable Capital LLP (SASC), a significant community energy funder. The acquisition of Leapfrog was reported here. Leapfrog Bridge Finance are now called SASC Bridge Finance and remained a mezzanine lender to the project until December 2020.
The strong fundamentals of the project were confirmed by an over-subscribed community bond offer, which raised over £850,000 within a week. The proceeds were used to fully repay SASC Bridge Finance. For further information on the bond offer see here.
To date, surplus income generated by Ferry Farm Community Solar (around £50,000 per year since inception, due to increase following the refinancing) has been used to support:
An energy and fuel poverty advice service, helping individuals and families living in fuel poverty reduce their energy spend, maintain a healthy living environment in their homes, deal with energy debts and access energy-related benefit payments.
A community grant fund, supporting local organisations and projects in Selsey and Sidlesham.
A £40,000 Corona Crisis fund to support local people facing hardship due the outbreak, shut down and likely recession.
Over the solar farm’s lifetime of 25 years, it is expected to generate up to £2,000,000 of community funding.
Louisa Cilenti and Nikola Zahariev, Partners at Lux Nova – SASC’s legal advisors for the transaction – said:
“We are delighted to have supported Leapfrog (and now SASC) in its new capacity as mezzanine lender to the Ferry Farm Community Solar Project, with increased cash flow for the local community following this refinancing. It is testament to the expertise, vision and commitment of the Leapfrog, SASC, CfR and Triodos teams that community projects like this continue to be successful amid the current economic and regulatory uncertainty. We continue to be filled with optimism that we will emerge from the COVID-19 pandemic with a stronger focus on the value of communities and the enabling role of social finance to advance a bigger societal mission and positive social impact.”
Ben Rick, co-founder and Managing Director of SASC, said:
“I am delighted to see Triodos supporting community energy projects with this refinancing. When SASC acquired Leapfrog Bridge Finance in September, we did so not only to build on the strong work we have done in this space but also to support the existing Leapfrog portfolio borrowers. Ferry Farm Community Solar delivers clean energy, strong social impact and involves the local community in determining their energy future. It is great for SASC to be able to work with them and we hope they will provide a template for many more SASC Bridge Finance investments.”
