http://www.newenergyworldnetwork.com/renewable-energy-news/by-technology/wind/community-renewable-energy-projects-generate-preferential-returns-experts-say.html

Community-based renewable energy projects can offer high returns, according to social enterprise community energy group Green Trust.

A social enterprise model of community power has certain benefits and giving communities ownership of profits without necessarily having ownership of assets is one key plus point. Projects that generate a return can be invested back into the community. Secure community involvement generates preferential returns, according to sustainability experts speaking at a recent Carbon Leaprog sustainability event.
‘A community doesn’t have to have ownership of renewable energy assets to get profits,’ said Jake Burnyeat, managing director of sustainable community enterprise organisation Green Trust.
Big names in power such as EDF and Scottish Renewables have community wind interests. One drawback of community-owned renewable energy assets, however, is that it is not possible to secure renewable energy assets through bonds.
UK-based green energy company Ecotricity launched a bond issue late last year to enable investment in a portfolio of renewable power, seeking to raise £10m by ‘cutting out the middle man’. Its fixed-rate EcoBonds have an initial four-year term, paying an annual interest rate of seven per cent.
‘It would be difficult to do this [secure bonds for renewable energy projects] from a community perspective,’ said Burnyeat.
‘If community wind projects are looking to do this through refinancing, then it may be possible, but otherwise it is not a viable option for initial funding.’
Several venture capitalists have also returned to backing solar projects after the feed-in tariff changes, enhancing the pool of funding available for community projects.
‘As a number of projects have fallen through in the UK, there is a lot of venture capital funding floating around,’ said Will Cottrell of Brighton Energy Co-op.