UK investment in community renewables spikes ahead of tax reliefs end

There has been a record investment in UK community renewable energy projects over the last month due to a rush to beat an end of tax reliefs, according to Ethex and Mongoose Energy.

Ethical investment platform Ethex said this week that an all-time high of GBP 12.8 million (USD 19.2m/EUR 18.1m) was raised into 28 community energy schemes in the last month before the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) tax reliefs for such schemes closed on November 30. The six share offers listed on Ethex raised GBP 4.8 million of the total.

"We hope this interest continues with the new community energy share offers we have listed on Ethex the first week of December, albeit without tax reliefs," said Ethex chair Jamie Hartzell.

Community energy investment firm Mongoose Energy said that the British public had invested a record GBP 7.83 million in community energy solar projects in the month after the Treasury announced the removal of several tax reliefs for community energy. Fifteen community benefit societies running solar projects across the UK have announced their fundraising totals, it said. Five funds run in association with Mongoose Energy account for GBP 4.81 million of that.

"Community Energy plays a key part in helping to add renewable energy capacity whilst also enabling programmes such as those that reduce energy poverty," Emma Bridge of Community Energy England said, adding that the investment demonstrated the level of support for community energy.

Community Energy England is trying to challenge the removal of tax reliefs and has sent a legal "pre-action letter" to Treasury asking them to reverse the changes.

(GBP 1.0 = USD 1.500/EUR 1.416)

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