Sheffield Council to launch second Climate Investment Bond to fund green projects
Bond buyers get a return on their five-year investment plus their money back and the council uses the money raised to fund green schemes
A second climate bond is set to be be launched in Sheffield this year after the first one raised £1 million that is paying for solar panels on city schools.
Investors flocked to spend as little as £5 to buy the Sheffield Climate Investment Bonds last year, launched through specialist investment firm Abundance.
Bond buyers get a return on their five-year investment plus their money back and the council uses the money raised to fund green schemes.
A meeting of Sheffield City Council’s transport, regeneration and climate policy committee yesterday (September 16) agreed to commission a 25-year contract to operate and maintain solar PV panels on the roofs of 21 city schools.
They are: Athelstan Primary School, Bradway Primary School, Coit Primary School, Deepcar St John’s Church of England Junior School, Dore Primary School, Ecclesfield Primary School, Halfway Junior School, High Green Primary School, Holt House Infant School, Intake Primary School, King Edward VII Lower School, Lydgate Infant School, Marlcliffe Community Primary School, Mossbrook School, Royd Nursery and Infant School, Sheffield Inclusion Centre, Springfield Primary School, The Rowan School, Watercliffe Meadow Community Primary School, Westways Primary School and Woolley Wood School.
Council officer Matthew Hutton said that schools can sell any excess energy back to the National Grid but the return is not good at 4p per kilowatt hour.
He said that one school is undertaking a pilot scheme to buy a storage battery. Any unused electricity can still be sold on.
Committee deputy chair Coun Ruth Abbey asked if there will be another bond issue.
Mr Hutton said that the committee will be asked to approve a second issue in November, to go ahead in December.
He confirmed that the council will look to raise more than £1 million this time. Another 36 schools are on a waiting list for solar panels.
Mr Hutton confirmed to Coun Stuart Wallace that schools will continue to generate electricity during school holidays.
Coun Tim Huggan mentioned setting up local grids, directly exporting energy to nearby shops and businesses. Mr Hutton said discussions are taking place about that.
Coun Minesh Parekh said: “I am really happy that this is going through. It is important that we support council schools.”
He asked what happens if a school becomes an academy and Mr Hutton said the contract can be transferred.
Committee chair Coun Alexi Dimond said following the meeting: “I’m delighted that approval to proceed with the council’s Solar for Schools programme was agreed unanimously today.
“This will allow around 21 maintained schools in Sheffield to generate electricity – to reduce bills, reduce their emissions and show the benefits of renewable energy generation to schoolchildren.”
Coun Dimond said that Sheffield Green councillors first proposed local climate bonds in a motion in September 2022, again on 2nd November 2022 and again in February 2024.
He added: “But this is only the beginning – we have plans to move forward with more schemes which will generate energy and money for schools, communities and the council going forward, while also helping us to reduce our emissions and help prevent climate breakdown”.
Coun Parekh, Crookes and Crosspool councillor and Labour’s climate lead, said: “Solar panels on schools is a clear win-win. Schools generating solar power helps us with our ambitions to reach net zero but it also cuts their energy bills, so that our schools can spend more on pupils’ learning experiences.
“I’m delighted that Lydgate Infant School, Westways Primary and King Edward VII Lower School will all benefit from this council investment.”