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Crowdlending financing for solar installation in local entity
Published on 11 January 2021
Spain
Cataluña
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
Faced with the complexities or difficulties of traditional financing, the crowdlending alternative allows people to contribute small amounts of money in exchange for a financial return (installments), collected in a loan contract.
ECROWD, having prior experience of this type of financing through citizen participation in a local entity (Viladamat), proposes to the Barcelona City Council to opt for this type of financing.
The Barcelona City Council put out to tender the hiring of the installation company, and also - for the first time in Spain - of the company in charge of managing the crowdlending of which ECROWD was awarded.
ECROWD managed to raise 105,000 € for the implementation of the 32kWp solar installation in a public building through citizens' investments, which they will recover with a nominal interest of 0.95% per annum in semi-annual installments for five years, with the deadline for making contributions (from 50€ to 3,000€) being from March to June 2019 (90 days).
ECROWD has many self-consumption projects for different types of beneficiaries, so it is applicable to any recipient.
ECROWD, having prior experience of this type of financing through citizen participation in a local entity (Viladamat), proposes to the Barcelona City Council to opt for this type of financing.
The Barcelona City Council put out to tender the hiring of the installation company, and also - for the first time in Spain - of the company in charge of managing the crowdlending of which ECROWD was awarded.
ECROWD managed to raise 105,000 € for the implementation of the 32kWp solar installation in a public building through citizens' investments, which they will recover with a nominal interest of 0.95% per annum in semi-annual installments for five years, with the deadline for making contributions (from 50€ to 3,000€) being from March to June 2019 (90 days).
ECROWD has many self-consumption projects for different types of beneficiaries, so it is applicable to any recipient.
Resources needed
Total amount: 71,860€
• Contract for the ECROWD platform: 9,700€.
• Contract for the solar installation: 62,160€ (it was tendered for 105,000€ and very economic offers were presented, so ECROWD returned the remaining 42,840€ to investors through a partial early repayment of the collective loan).
• Contract for the ECROWD platform: 9,700€.
• Contract for the solar installation: 62,160€ (it was tendered for 105,000€ and very economic offers were presented, so ECROWD returned the remaining 42,840€ to investors through a partial early repayment of the collective loan).
Evidence of success
38,880 kWh / year have been generated, which is equivalent to the consumption of 17 homes.
14,700 kg CO2 / year has been avoided
166 citizens participated in the crowdlending
14,700 kg CO2 / year has been avoided
166 citizens participated in the crowdlending
Potential for learning or transfer
When intervening in energy poverty and addressing actions to vulnerable groups, an essential actor is the municipal entity as an instrument to promote self-consumption in social housing directly or through local self-consumption. Therefore, this form of financing (crowdlending) is a strength for the promotion of self-consumption that directly benefits social housing or buildings or indirectly their benefits can be dedicated to social purposes.
This good practice is easily transferable to any European region due to the fact that this reference of how a City Hall finances a solar installation through crowdlending already exists and citizens are gaining more knowledge and participating more in projects through crowlending.
This good practice is easily transferable to any European region due to the fact that this reference of how a City Hall finances a solar installation through crowdlending already exists and citizens are gaining more knowledge and participating more in projects through crowlending.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
ECROWD and Barcelona City Hall
Spain
Cataluña
Contact
Project Manager