The £1 million raised by Sheffield’s first-ever climate bond is being spent on solar panels for city schools.
The money was raised by the first issue of the bond by the city council. Investors can spend from £5 on five-year bonds, which earn 4.1% interest a year, and the lump sum is returned at the end.
The council, which has declared a climate emergency and is aiming for net zero emissions by 2030, is adding £365,775 from its Local Renewable Energy Fund to deliver the programme of solar panel installation at 26 non-academy schools.
As well as cutting climate emissions, it will lower energy costs.
A report to the council finance and performance policy committee (February 25) said that the scheme will be delivered by an outside partner. They will undertake detailed technical design, structural surveys and cost plans, make electricity grid and planning applications and install the systems.
Reduced
They will also provide servicing and maintenance for 25 years and deliver educational sessions to pupils on sustainability. The report said: “The solar panels will remain the property of SCC and the costs of their maintenance and the repayment of the climate bond will be funded via the power purchase agreements with the schools.
“Schools will be charged at a reduced rate for the electricity they consume which is generated by the panels and this will offset the borrowing and other operational costs of the panels.”
Three more schools – Arbourthorne, Walkley and Prince Edward Primaries – will receive solar panels through £149,000 of Great British Energy Solar Partnership funding, via the Department for Education.