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Raising social impact investments via a community share offer

BHESCo’s first community share offer was issued in June 2015, raising £250,000 to develop our first four low carbon energy projects in Brighton and Hove. 

Since then, we have attracted 262 investors and raised more than a million pounds of investment.

Every investment made in BHESCo is used to develop new community-owned energy projects and we are very proud to have now installed energy saving/energy generating technologies at no less than 48 sites around Sussex.

In addition to supporting local businesses and organisations to reduce their energy costs and environmental impact, our projects help to create business for the local clean energy sector and provide a replicable business model for anyone who wishes to take action on climate change.

Superior financial returns - our proven track record of repaying investors

BHESCo’s community energy projects are delivered at no upfront cost to customers using our unique ‘Pay As You Save‘ financial model. 

BHESCo finances the installation of our projects on behalf of our customers, who repay the cost over a number of years using a portion of the savings achieved from their monthly energy bills. 

In addition to repaying the initial project costs these monthly payments include a 5% interest allocation which is passed on to our shareholders.

For this reason, BHESCo is able to deliver on our promise to pay investors 5% interest each year for the duration of a ‘Pay As You Save’ contract (typically 20 years).

Since our first share offer in 2015, we have made £72,974 in interest payments to our investors. 

Asset security - why your investment can be considered low risk

When you become a shareholder with BHESCo your money is invested in low carbon energy technologies such as solar panels, heat pumps, energy efficient lighting systems and so on.

This means that the value of your funds is secured in those energy technology assets. In the unlikely event that BHESCo were to become insolvent, our ‘book’ of energy projects would likely be taken over by another community energy business who would continue to service the energy equipment on behalf of customers and continue to pay shareholders annual interest.

One drawback of community shares is that your investment is not covered by the Financial Services Compensations Scheme, which means you cannot enjoy the same level of security as you may expect from an ISA for example.

Social Impact Ethical Investing - Brighton Road Baptist church - ethex
Investments in BHESCo are used to purchase and install energy generation and energy saving assets on behalf of our project customers

Furthermore, because your investment is secured in our on-site energy technologies, it can be considered to be relatively ‘illiquid’, i.e. not readily accessible. 

However, the potential 5% return on your investment is significantly greater than the 1% – 2% interest that is typical of most ISAs and Easy Access savings accounts. 

Moreover, your investment will be playing a vital role in the creation of a more equitable and sustainable society, instead of just sitting in a savings account doing little to nothing (for you or the planet).

Since our first share offer in 2015, we have made £72,974 in interest payments to our investors.

Why you should start investing in an ethical business like BHESCo

Whatever your personal view on financial risk, you must acknowledge that with interest rates as low as they are, simply leaving your savings in a bank account will result in long-term devaluation due to the cost of inflation (typically 1-2% per year)

At the very least you should be thinking about putting your money in an account that matches the rate of inflation. However, if you want to see your savings grow over time then you should consider becoming a long-term investor in BHESCo. 

Our current share offer presents you with a low-risk investment opportunity that promises a superior financial return and will deliver meaningful social and environmental impact.

Please remember that our investments are not covered by the UK’s Financial Services Compensation Scheme, and that prospective investors should be aware that the value of the shares, which will not be quoted, cannot go up, but can go down. In addition, there is no certainty that investors will get back the full amount they invest.

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