Renewable energy organisation Pingala sold out of shares in nine minutes for its first community solar fund.
Pingala partnered with the environmentally-conscious Young Henrys brewery in Newtown, Sydney to build a solar farm on its roof, which will save an estimated 127 tonnes of greenhouse gas emissions a year.
The newly launched Pingala Cooperative, which sits alongside the Pingala Not for Profit, allows the organisation to raise funds from member investors to install solar panels on its partner businesses.
“We then lease the solar to the business, so they pay us a fee to be able to use the equipment as though it were their own, and through that we get a revenue stream that allows us to pay our costs and generate a small profit,” Pingala secretary Tom Nockolds told Pro Bono Australia News.
“So we’re offering our investors between 5 and 8 per cent… return on investment. But they’re investing in Pingala on an ongoing basis, so there’s no predetermined timeline for when investors get their money back, it’s totally up to the investors themselves to decide when they want to sell their shares, it’s much like buying shares in a company.
“Every time we do a new project we’ll need to raise more funds, so we’ll release more shares, and we’ll make sure that when we do bring on new projects they’re on equal or better terms than our first projects so that the first investors are not having their share holdings diluted or their returns diminished with under-performing projects in the future.”