Haystacks Solar Farm
 

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.

Project Information
 
City, Country
Riverina, New South Wales, Australia
Duration (Start/End Dates)
April 2024 / On-going
Funding Source
The NSW Government's Regional Community Energy Fund, crowd-investment, and equity investors
Project Lead (Organisation)
Pingala
Project Partners
Komo, Pingala, Community Power Agency, Energy Locals

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

  • Allowing people regardless of tenancy/ownership to realise the benefits of solar on their electricity bill
  • 175 ‘plots’ taken up as of April 2024
  • Fully subscribed solar farm with cooperative ‘plots’ at a niche size
  • Demonstration of model to expand ownership within existing regulatory framework
  • What problem(s) does the case study aim to resolve? The project aims to solve the issue of people, especially apartment owners, who can’t install solar panels on their own properties. The Haystacks Solar Garden gives them the opportunity to invest in solar energy by purchasing plots hosted by the 1.5MW Grong Grong Solar Farm in the Riverina region.

 

  • What were the social objectives (if any)? The main social goal was to make renewable energy more accessible, allowing more people to participate in the clean energy transition. The project received a grant specifically for community energy initiatives, helping to cover costs and expand involvement. It also emphasizes strong community engagement in renewable energy projects, ensuring that local communities benefit socially, environmentally, and financially.

 

  • What were the environmental objectives (if any)? The environmental objective was to expand access to solar power, allowing people without rooftops to invest in and benefit from renewable energy.

 

  • To what degree were participants actively involved in design or operation? The project was largely driven by members of the Pingala cooperative, along with other key partners, who played an active role in its development and operation.

 

  • Was participation financially or socially incentivized or both? Participation was primarily incentivized as a financial investment, offering returns through energy credits.

 

  • What degree of demand response flexibility was provided? There was no requirement for participants to adjust their energy use. Instead, they received bill credits based on the energy generated by their solar garden plots

 

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

 

 

  • Wider Participation in Solar Energy: The project successfully enabled 333 cooperative members to benefit from solar energy without the need for rooftop installations.
  • Financial Savings: Participants received on-bill credits valued at approximately $505 per year, helping them reduce electricity costs.
  • Community Engagement: The cooperative model allowed members to actively participate in project decisions, fostering a sense of ownership and collaboration.
  • Environmental Contribution: The project contributed to reducing carbon emissions by generating clean energy through a 1.5MW solar farm.
  • Media and Public Attention: The project garnered significant media attention, raising awareness about the potential of community solar gardens and encouraging replication across other regions.

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.


For more information on the Case Study
Contact Person: Dr Declan Kuch, Jonathan Prendergast
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