About Humshaugh Community Solar Project
The Community Benefit Society
Humshaugh Community Solar Limited (HCSL) is a Community Benefit Society registered with the Financial Conduct Authority (FCA). The FCA, which sets out requirements for societies, says that a CBS's business must be conducted "entirely for the benefit of the community...” with no alternative or secondary purposes, including any that may preferentially benefit the members. The FCA also says “it is not usually appropriate for a community benefit society to give any particular group of members greater rights or benefits, because the society must be conducting its business for the benefit of the community. So, for example, we would expect to see community benefit societies run democratically on the basis of one-member-one-vote.“ Any profit made by a community benefit society must be used for the benefit of the community. Profits cannot be distributed to members of a community benefit society. Interest on share capital is an operating expense and should be subject to a declared maximum rate. HCSL would seek to provide a fixed annual return for investors and use surpluses to provide local community benefits.
The rules of the CBS can be found below.
Risk Management
Community solar projects are not new. Initial projects had the benefit of the highly lucrative FIT payment scheme for renewable energy generation, which is no longer available. However there is still a premium and a demand for low-carbon electricity from companies wanting to be sustainable and demonstrate their green credentials. Energy suppliers such as Octopus and Good Energy are set up to buy and sell low-carbon energy exclusively.