Reading Community Energy Society has been installing community-owned solar photovoltaic (PV) panels in and around Reading for the last 10 years and is currently raising funds for its biggest installation yet. Director, Dan Fernbank, explains more.

Community Benefit Societies are the lesser known relation of co-operatives. They exist specifically to benefit the local community (a requirement of the Co-operative & community benefit societies act 2014). For Reading Community Energy Society, we deliver those societal benefits in multiple ways…

Saving energy costs for local organisations

We currently own and operate 23 solar PV systems in and around Reading and are working to expand this further. This covers a wide range of different buildings, including churches, community centres, leisure centres, council buildings, university buildings, a school, a farm, a recycling centre and more!

Our model is simple. We fund the installation and operation of the systems, so there are no upfront costs for organisations (save for a £100 proposal fee) and we sell the energy generated back to the host building over a long-term contract (typically 20 years). Any energy that can’t be sold to the host organisation is sold instead to the national grid. Though as we get paid less for that, we typically work with organisations that are likely to use at least 70% of what we generate. We hope that planned changes to regulations will open new opportunities to work with a broader customer base.

We always aim to set a p/kWh starting price for electricity that is lower than the building’s current electricity tariff, enabling them to make sustained cost savings compared to the alternative. Our prices are index-linked, but otherwise this protects the customer from some of the volatility of international energy market prices. They still need a standard supply contract too, to be able to buy electricity from when our generation is low.

At the end of the contract term, the panels are donated to the host organisation, so they can continue to benefit from the panels’ generation for free for the rest of their operational life.

Reducing carbon emissions locally

Our generation has zero onsite carbon emissions, and typically the ‘embedded carbon’ of solar panels pays back within three years. That is, the amount of carbon involved in their manufacture is offset by that saved after around three years of operation – and solar panels typically last for 30+ years.

We currently generate around 525,000 kWh electricity each year, enough to power 207 average households in Reading borough [1], and saving around 118,000 kg of carbon dioxide annually [2].

Providing a fair return to our members on their investment

We raise funds through bespoke share offers and are currently running our fourth share offer, to fund our biggest installation to date. A whopping 609 solar panels at Reading Buses’ Great Knollys Street depot – adding a further 271 kWp generation to our existing 605 kWp capacity.

Individuals and organisations can invest from £200 up to £20,000. For this fourth share offer, targeted returns are 5% years 1-3 and 5.5% years 4-20. After year 3, we plan to repay 15% of members’ capital investment, and then a further 5% per year going forwards, so that at the end of year 20, we have completely repaid their investment.

Priority is given to applicants with RG postcodes, as well as our 231 existing members. This current share offer is due to close on 30 June 2026.

Note: It is important to be clear that these are long-term investments in shares to deliver environmental and social impacts as well as a financial return. As with any investment there are risks, capital is at risk and may not be readily realisable. Returns are projected and variable, depending on the performance of the project, and are not guaranteed. It is therefore important to consider all risks before investing and to read the offer documents.

Providing a grant fund for local sustainability initiatives

Reading Community Energy is a volunteer-run organisation, though we pay for some management and accounting services, as well as for some operational costs to maintain the solar PV systems. Once we have covered those costs and paid returns to our members, we operate a sustainability grant fund to support local sustainability initiatives. Over 10 years, we have given a total of £17,597 to 14 projects, ranging from LED lighting, to growing gardens and school sustainability workshops. As our scheme matures, we expect our grant funding pot to grow and we are always open to new applications.

About the author

Dan Fernbank – Director at Reading Community Energy Society

Dan is one of eight current Directors of the Society, having been involved since its inception in 2015, and leads on their new project and communication work.

In his day job, Dan works as Energy & Sustainability Director at the University of Reading, where he has managed the delivery of operational sustainability since 2011. He has overseen a 64% cut in the University’s carbon emissions, saving £56 million in energy costs cumulatively. 

Dan is a Fellow of the Energy Managers Association, a Member of the Energy Institute and has a first class honours BSc in Environmental Studies.

[1] Median electricity use 2024-25 – source: https://www.ons.gov.uk/explore-local-statistics/indicators/domestic-electricity-consumption (accessed 26 May 2026)

[2] Based on 2026 DESNZ carbon factors for electricity generation, transmission & distribution – source: https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2025 (accessed 26 May 2026)