Frequently asked questions

Here are answers to the most common queries.

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Share offer related questions

How do I apply for shares?

Applications for YCE shares can be made through the Ethex platform by going to www.ethex.org.uk/invest/yce

This will take you through to the Ethex website where our share offer is listed. You will need to complete various steps to register, where eligibility checks will apply, before you can invest. The final decision to approve each application is at the discretion of the directors of Yealm Community Energy.

Ethex is an Oxford-based not-for-profit organisation operating an online platform for positive investments, which makes positive investing easy to understand and easy to do.

If you have a query about how to apply for this offer, please visit www.ethex.org.uk or contact Ethex by email at help@ethex.org.uk

For general queries about this offer, please contact YCE at: info@yealmenergy.co.uk

Who can apply for shares?

The board may, at its discretion, accept share offer applications from any individual aged 18 and over, any corporate body or nominee of an unincorporated body, firm or partnership, who supports the objects of the society. A corporate body that is a member shall, by resolution of its governing body, appoint a representative who may during the continuance of her/his/their appointment be entitled to exercise all such rights and powers as the corporate body would exercise if it were an individual person. Each such corporate body member shall supply notification in writing to the society of its choice of representative. Ethex’s platform cannot accept US or Canadian investments.

Investors in this share offer may hold shares on behalf of somebody who is under 16 years of age. If you wish to invest on behalf of a child then you can do this at the end of your online order process. The Ethex platform is unable to have accounts for individuals under the age of 18, instead you should use the online nomination form if you are buying shares on behalf of someone aged 16-17. Once the offer closes, the shares will be held in the name of the applicant (as first named member on the share register) on behalf of the person under 18 years old until such time as the named member instructs the society otherwise. On notification, we can cancel the original shares and new shares will be issued to the nominated individuals aged 18 on proof of age.

What happens if/once my application is accepted?

Prior to any drawdown of funds, Ethex will provide the board of directors with an allocation list for consideration at the next board of directors’ meeting. The board will be required to approve the list of investors, and, upon approval, funds will be transferred to YCE.

Money will be held by ShareIn as Ethex’s designated receiving agent until the shares are issued. Your money will be held by ShareIn in escrow until we issue shares to you. After this, you will be bound by the Rules (see YCE website)

Can I sell my shares?

Community shares are non-transferable and so cannot be bought or sold on any listed marketplace. Applicants should know that the only way of getting their money back is by selling shares back to the society. Notice has to be given of the intention to withdraw share capital and directors have the right to refuse requests for withdrawal. Before May 2029 the YCE directors will only accept requests for withdrawal associated with death or other exceptional circumstance, after that we will endeavour to meet all withdrawal requests providing sufficient funds are available.

What happens if the offer fails to reach its target?

If the offer fails to reach its target, any shortfall may be met through inter-company loans within CET, by other societies who over-raise. If the society partners fail to meet their overall equity raise targets, the junior lenders (BSC and PtC) may increase the Junior Loan amount to cover the remaining shortfall, so long as the CET minimum has been met. If the CET minimum is not met then the BSC/PtC Loan may not complete and if it does not, investor funds will be returned in full.

What happens if the offer raises above its target?

If the offer raises above its target, we may loan funds to other societies who under-raise. After this additional equity raised may be allocated to YCEs apportionment of the Junior Loan provided by BSC and PtC and will decrease by the over-raised amount (minus fees due to Ethex). The Junior Loan will be revised to meet the remaining financing need.

When can I expect to receive my first interest payment?

Interest payments will be agreed at our next AGM (Annual General Meeting), which we expect to hold in the early summer of 2024, and will be released after this.

Will I become a member of YCE?

All those who purchase shares through this offer or other similar offers will become members of YCE for as long as they hold at least the minimum investment. Each member is entitled to one vote at the AGM and any extraordinary general meetings. All members may stand for election as a director of the society at an AGM.

Could YCE sell any of the solar farms?

As a Community Benefit Society the value of the assets are "locked" for community benefit. If they were sold the money raised by the sale must be used for community benefit. A sale would also need the approval of the membership and of the senior lender, abrdn, unless the senior loan has already been repaid.

What about further community energy schemes and share offers?

YCE may consider acquiring new community energy assets in the future so might issue further share offers. Any new scheme will only go to a share offer with the approval of the membership. Any future share offer could have different terms and conditions to this offer. Any future schemes could affect YCE’s ability to repay the capital invested under this share offer, hence the requirement to get members’ approval before undertaking further share offers.

What is CORE’s relationship with YCE?

Community Owned Renewable Energy (CORE) LLP is the current owner of the holding companies for the three solar farms: Newton Downs, Creacombe and Marlands. It is also the owner of all other holding companies in the CORE portfolio. The original funders, Power to Change (PtC) and Big Society Capital (BSC) own CORE LLP. PtC and BSC also have nominated representatives on the CORE management board, which oversees the management, strategic decision making, operation and administration of the CORE portfolio.

Upon completion of the equity raise, ownership of the three YCE solar farm holding companies will be transferred to YCE. Portfolio level decision-making will be handled by CET, which is governed by members of each of the societies. PtC and BSC will maintain an ongoing relationship with YCE and CET as junior lenders to the portfolio through CET.

What is Finance Earth’s role and relationship with YCE?

Finance Earth (FE) designed CORE and launched it with funding from PtC and BSC in 2017. FE currently acts as the advisor and investment manager, providing a range of services including acquisition and corporate finance advice, administration services, restructuring and optimisation and debt and equity refinancing. FE also prepared bespoke financial models for the CORE portfolio and each society, including YCE. These models have informed this share offer document and supporting business plan.

Community fund related questions

What is the purpose of the Community Fund?

The Community Fund is designed to use surplus income from YCE’s solar farms to support good works within our local communities, including Brixton, Holbeton, Newton & Noss, Wembury, and Yealmpton.

How are the surplus funds from the solar farms allocated?

Surplus funds are allocated based on the planning agreements for each solar farm:

• Newton Downs: Funds are directed into a Community Benefit Fund controlled by YCE.

• Creacombe and Marlands: Funds follow two Section 106 agreements, providing inflation-linked payments to Parish Councils and Primary Schools in Holbeton, Newton & Noss, and Yealmpton. Any remaining surpluses are added to the Community Fund.

Who decides how the funds are used?

For Newton Downs, YCE controls the Community Benefit Fund. For Creacombe and Marlands, the Section 106 agreements dictate the allocation, with YCE having no control over those specific funds. Remaining surpluses from Creacombe and Marlands are added to the Community Fund managed by YCE.

How much funding has been distributed so far?

Since YCE was formed, and the solar farms began operation, over £141,000 has been distributed to the communities. This total is expected to rise to almost £160,000 by early 2025.

How are the funds typically used within the community?

The funds are used for various community projects and initiatives, as decided by the controlling entities of each fund. The specific uses can be seen in the detailed table provided above.

Can community members apply for funding?

For funds controlled by YCE, community members or organisations can apply for funding through our established application process. Follow us on Facebook and/or sign up to our newsletter to be alerted when we are accepting new applications.

Yealm News

YCE Autumn Newsletter

An interesting development in battery storage in a disused power station in Ferrybridge. https://www.sserenewables.com/solar-and-battery/battery-storage/ferrybridge/?fbclid=IwY2xjawG0O5JleHRuA2FlbQIxMAABHYHqmrrJJxW1fRd40MzsG7l-v7p7-_SKbEt6m5QYLbOGuwO-Q5G5rhqTWA_aem_epAQcLbsmm7k5Rd0tkyAqw

November 27, 2024

Get involved

We launched a community share offer in 2023 to fund the transfer of three nearby operational solar farms into community ownership. The offer is now closed.

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