Invest

Brixton Energy Solar 2 is a new Co-operative set up to enable local people to invest in renewable energy generation in Brixton and raise funds for energy efficiency initiatives.

Our current share offer is now closed but if you are interested in investing in future projects you can pledge money using our online form.

How it works

If you invest in Brixton Energy Solar 2 (BES2), your money will be put to work straight away to finance the installation of a major solar power station on top of Styles Gardens in the Loughborough Estate, Brixton.

The solar power station will be registered under the Government’s Feed-In Tariff (FIT) programme, which requires energy companies to pay a tariff for the generation and export of qualifying renewable energy for 20 years. Additionally, BES2 intends to sell energy to the operator of Styles Gardens (United Residents Housing) for immediate use on the site. Revenue from the project will be used to cover administration costs and to provide a financial return to investors. Tax relief of up to 50% is available in the first tax year of your investment under the Government’s Seed Enterprise Investment Scheme (see below).

In addition, as a co-operative and social enterprise, this project has been structured so that a portion of the revenue generated will be set aside for a Community Energy Efficiency Fund (CEEF), which will be administered and managed collectively by the investors in the BES2 co-operative.

Investment in BES2 is open to all tax payers in the UK, aged 16 or older, not just residents of Brixton.

Indicative return

3%
average annual dividend
50%
tax relief via SEIS
+ 1%
average contribution to CEEF

We estimate that the project would provide an average annual return on investment of approximately 3.05% and additionally you will be able to claim a 50% lump sum tax deduction in year one.

Illustrative example

The figures above are for illustration only. You should read the accompanying Share Offer Document before making any investment decisions.

Initial investment: £1,000
Tax relief via  SEIS scheme (in Year One): £500
Dividends over 20 years: £600
Return of initial investment after 20 years: £1,000
Total financial benefit over 20 years: £2,100
In addition your investment will enable:
Contribution to the Community Energy Efficiency Fund: £200

 

Seed Enterprise Investment Scheme (SEIS)


As a co-operative member of Brixton Energy Solar 2, you are eligible for tax relief under the Seed Enterprise Investment Scheme. Pursuant to this scheme, qualifying investors can claim tax relief of 50% of their investment in BES2. The relief is given by way of a reduction of tax liability, providing there is sufficient tax liability against which to set it. This tax relief is in addition to the financial return and contribution to the CEEF. For more information about the SEIS, you should read the Share Offer Document and information from HM Revenue & Customs.

Assuming that you are able to take advantage of the full relief under SEIS, your investment in Brixton Energy Solar 2 would be, in effect, at a 50% rebate or discount because you would be reducing your tax liability by 50% of the cost of your investment. This would equate to an effective average annual return on investment of approximately 6.11%.