Haystacks solar garden is in the Riverina region of New South Wales, and has provided an opportunity for 333 cooperative members to purchase solar garden plots equivalent to 3kW. Each plot, priced at $4,200, is estimated to generate an average annual credit of $505 on a member’s electricity bill for ten years. Cooperative Capital Units (CCUs), a type of debenture, are the legal tool used for selling these solar garden plots to the co-op members.
The sale of these 333 solar garden plots worth $1,398,000 has financed the farm. This amount is intended to be loaned to the 1.5MW Grong Grong Solar Farm, helping to fund its construction. The remaining funds for construction are sourced from the equity owners of Grong Grong Solar Farm and grant funding provided by the NSW Government Regional Community Energy Fund.
The loan repayments from Grong Grong Solar Farm to Haystacks Solar Garden form the revenue stream necessary to create on-bill credits for the members. This approach not only promotes the adoption of renewable energy but also offers a unique investment opportunity for individuals in the cooperative, aligning financial incentives with environmental sustainability. This model represents a significant advancement in community-driven renewable energy initiatives, demonstrating a viable pathway for similar projects in the future.
Parameter |
As designed |
As built |
No. participants |
Open |
333 Cooperative members |
Generation (kWp) |
1.5 MW |
1.5MW Solar Farm |
Storage (kWh) |
None at time of writing |
None at time of writing |
Unit price ($/kWh) |
Estimated at A$0.12/kWh |
Approximately A$0.12/kWh |
Project cost ($) |
|
Total of $4.98m |
The solar gardeners, who mostly live in cities hours away, will get at least $455 off their power bills for the next decade, with $505 a year for the first five years locked in.
A key lesson learned from the project development process is the importance of careful financial planning. Good accountants and financial planners are crucial. Early feasibility studies, costing around $30,000–$50,000, can become outdated in 6 to 18 months, so balancing early investment and securing detailed project plans is crucial. Additionally, raising funds at the right time is essential—too early and investors may be nervous; too late and the project may carry too much debt.
Partnerships with community energy groups, such as regular communication, are vital for project success. The construction phase requires just as much attention as development and finance, especially regarding safety and metering. Delivery is just as intense as finance and development!
For community groups looking to partner with industry, the top tips include defining clear objectives, regular communication, prioritizing “must-haves” versus “nice-to-haves,” and finding a patient landowner. The Regional Community Energy Fund from the NSW Government provided 50% of project costs, which was crucial for the project to get over the line.
The official launch of the Haystacks Solar Garden in Grong Grong was April 27 2024, some 5 years after project conception.
Key takeaways for future Solar Gardens · The cavalry isn’t coming – it’s us! · 5MW scale is easier but you don’t get economies of scale · Legal and accounting expertise, as well as community networks are crucial · When to secure funding from community: tradeoffs between going too early or late |
Key takeaways · Haystacks Solar Garden provided renters and apartment owners access to solar energy, offering a practical solution for those without rooftop options. · The cooperative model empowered participants by involving them in decision-making, fostering local engagement and collaboration in renewable energy. · The project delivered savings through energy credits and reduced carbon emissions, offering a scalable model for community-driven clean energy projects. |