THE UK's first ever solar bonds allowing people to invest in a new solar farm at Wroughton have sold out a month early.

Issued jointly by Swindon Council and leading peer-to-peer investment company Abundance, the bonds have now set a benchmark in innovation for local authorities to fund renewable energy and other infrastructure projects to boost the green economy.

In February, Swindon Community Solar Farm invited members of the public to invest a minimum of just £5 and offered an effective rate of return of 6 percent over its 20-year term. During the three-month offer period it attracted an average of £18,000 in investment per day with one-third coming from the Swindon area. The bond offer closed on Tuesday, a month earlier than scheduled, after reaching its £1.8 million target. Swindon Borough council is co-investing £3 million to build the 5MW solar farm on council-owned land at Common Farm, Wroughton.

Councillor Dale Heenan, Swindon Borough Council cabinet member for Transport and Sustainability, said: "We took a bold decision to create this community solar farm by offering the first council bond direct to the general public. It was a calculated risk to raise £1.8 million this way, but we knew there was an appetite from residents to invest in something with genuine environmental and community benefits. The fact that we’ve hit the target four weeks early proves how successful this project has been.

“All councils need to find new and innovative ways to fund the vital work that they do for their communities, and Swindon now has a template which other local authorities can follow. Embracing renewables will help Swindon Borough Council raise £1 million more in business rates and rent by 2020, which means £1 million more every year which can be spent on important local services.”

Bruce Davis, Managing Director at Abundance, said: “The success of this investment offer has really set a standard for local authorities looking to fund green infrastructure. We’ve had lots of inquiries from other councils interested in following Swindon’s pioneering lead. Energy is one area where local authorities have the power to make a difference, engaging and enabling their residents to take positive action and invest in a more sustainable future. We would also like to see them going beyond solar and fund other infrastructure projects this way.”

Construction has already started and the solar farm is due to be completed by the end of June.

The solar farm will help Swindon in its aim to install 200MW of renewable capacity by 2020, enough to meet the equivalent energy requirements of every home in the Borough. A Community Interest Company, wholly owned by Swindon Borough Council, will manage it. Sixty-five per cent of the distributable profits from the solar farm will go towards funding local community initiatives, with the remaining 35 percent going to the Council.

Revenues will be raised from selling the electricity generated, as well as support from the Feed In Tariff subsidy (FIT).