All about shared community ownership under the Community Energy Strategy's voluntary protocol
Note: Various business approaches are represented in this list; from commercial to not-for-profit; mainly business- to mainly community-focussed. Before choosing any, assess the best fit for you.
Some of these intermediaries also assist with fund-raising.
In principle funding shared ownership projects is no different from stand-alone commercial or pure community projects. Don't confuse funding with the ownership approaches here.
Crowdfunding is often mentioned in conjunction with shared ownership, because it is becoming such a popular way for lots of people to invest in projects.
Crowdfunding is the way of funding a project or venture by raising contributions from a large number of people, typically via the internet. Both equity and debt capital can be raised this way; ordinary and preference shares, and debt debentures are all commonly crowdfunded instruments. Crowdfunding in the UK is regulated by the Financial Conduct Authority.
There are three primary participant groups: the initiator with the project or venture to be funded; the individuals or groups who invest; and the crowdfunding platform that brings the parties together.
Some developers already use crowdfunding to enable private individuals to invest in a project. Where that investment is done as part of a community enterprise it is a shared community ownership approach, where the individual investors are are not members of community groups, then it is classified amongst the other participation approaches.
Crowdfunding can of course be used for raising capital for shared ownership projects – and for pure commercial or community projects too. Ways in which crowdfunding platforms are adapting to facilitate shared community ownership are mentioned here.
The crowdfunders listed on the right have experience in raising capital for community energy projects and are also enthusiastic about shared community ownership projects.