Manilla Solar | Swarmer (original) (raw)

Reasons To Invest

The Problem

Investment and ownership of solar projects are predominantly controlled by large corporations and investment funds, which often prioritise maximising returns over community needs. While communities may have opportunities to co-invest and share in profits, they rarely have a say in critical business decisions.

Consequently, regional development, support for local initiatives, and the reduction of electricity costs for households and businesses rarely guide in the decision-making process.

Photo of Grong Grong Solar farm courtesy of IAG

The Solution

The Manilla Solar Project provides a unique chance to invest directly in solar energy, gaining control over essential energy infrastructure while accelerating the energy transition.

By investing in the Manilla Solar Project, you support regional development and contribute to a sustainable future, all while earning economic returns on your investment.

Community ownership empowers local investors, ensuring that economic value stays in the region and positively impacts local initiatives, such as offering electricity at reduced rates through an energy retailer.

The Industry

The Manilla Solar Project will operate within the evolving electricity industry, delivering essential services during a time of significant transformation.

In New South Wales, approximately 58% of electricity still comes from coal generation, a decline from around 80% five years ago. This figure is expected to decrease further as major coal power stations like Liddell, Eraring, Vales Point and Bayswater retire.

The industry also faces a pressing need for radical decarbonisation. Transitioning from coal to renewable energy, alongside energy storage solutions, has been slow due to challenges such as securing land, obtaining approvals, and securing funding.

Photo courtesy of Grong Grong Solar Farm

Competitive Advantage

Mid-scale projects like the Manilla Solar Project can navigate development hurdles more efficiently than large-scale projects, enabling quicker deployment. As a project under 5 MW, it enjoys specific advantages in the National Electricity Market (NEM), including the flexibility to decide when to sell power or withhold it for later sale, thereby maximising the value of the energy generated.

The economic success of a solar farm hinges on construction and financing costs, which directly impact profitability. While large-scale solar projects benefit from economies of scale, the Manilla Solar Project is sizable enough to ensure efficient construction while remaining larger than typical community-scale projects. It also benefits from grant funding from the NSW Regional Community Energy Fund to help cover capital costs.

Electricity market prices are expected to remain high until Renewable Energy Zones come online. As a smaller project, the Manilla Solar Project can be delivered more rapidly, allowing it to capitalise on favourable market conditions.

If fully funded by the community, the project will have an agile setup, enabling it to adapt swiftly to changing market dynamics and emerging opportunities.

Photo courtesy of Grong Grong Solar Farm

Business Model

The business model of Manilla Solar is straightforward: secure financing, construct, and operate a community solar farm that sells renewable energy to the National Electricity Market while delivering community benefits.

As we approach 2030, a significant opportunity arises in the gap between the retirement of coal power stations and the slow rollout of large-scale renewable generation. Our goal is to finance and build the Manilla Solar Project as quickly as possible to capitalise on this transition.

Investing in battery storage will create additional revenue streams by allowing us to supply power during peak demand periods at higher prices and provide valuable grid services. We may offer power purchase agreements (PPAs) and support for corporations aiming to reduce emissions and invest in community energy.

Additionally, the Manilla Solar Project will deliver various community benefits. This includes ongoing support for the work of Manilla Community Renewable Energy Inc (MCRE) and an initiative to enable local residents and businesses to access renewable energy and lower their electricity bills.

Business Achievements

Our partner, Manilla Community Renewable Energy Inc. (MCRE), has been lobbying for more than 10 years to develop this project and built support in the local and regional community.

In 2023, Manilla Solar successfully raised over 435,000fromlocalinvestorstoacquirethedevelopmentrightsfortheManillaSolarProject.Thisachievementmarksasignificantmilestone,astheprojectisnowcommunity−ownedby82investors,eachcontributinganaverageof435,000 from local investors to acquire the development rights for the Manilla Solar Project. This achievement marks a significant milestone, as the project is now community-owned by 82 investors, each contributing an average of 435,000fromlocalinvestorstoacquirethedevelopmentrightsfortheManillaSolarProject.Thisachievementmarksasignificantmilestone,astheprojectisnowcommunity−ownedby82investors,eachcontributinganaverageof5,000.

The complex task of obtaining both development and grid connection approvals has been completed and Manilla Solar has acquired these development rights in April 2024.

MCRE has been awarded a grant from the NSW Government's Regional Community Energy Fund, which supports the project's capital costs and enables the Manilla Solar Project to deliver a range of community benefits.

Risks

Single-Purpose Entity: Manilla Solar is a single-purpose entity focused solely on the Manilla Solar Project, which aims to sell electricity and green certificates generated by the project. This narrow focus means that Manilla Solar is exposed to both the potential benefits and challenges associated with this specific venture, with limited ability to diversify its revenue streams.

Supply Chain Risk: Manilla Solar is subject to market fluctuations in global supply chains for solar equipment and construction. While we are working to ensure greater cost and timing certainty during the procurement process, there remains a risk that final costs and timelines may not align with our commercial expectations.

Market Fluctuations: Manilla Solar will operate within the evolving electricity industry, which is undergoing significant changes. This dynamic environment presents both risks and opportunities.

Financing Risk: The current fundraising efforts are not sufficient to fully deliver the Manilla Solar Project. Additional fundraising will be required to complete all project stages.

Photo of Grong Grong Solar Farm courtesy of IAG

Use of Funds

The allocation of funds will focus on several key areas of investment and may include:

Procurement Activities: We will engage in further design work to inform the procurement of components and contractors, prioritising local suppliers where feasible from both technical and financial perspectives.

Construction Activities: Funds will be used to pay suppliers and construction contractors involved in the initial stage of the Manilla Solar Project rollout.

Fundraising Activities: We will continue to pursue additional fundraising efforts to ensure the Manilla Solar Project is fully funded and successfully delivered.

Depending on the amount of funds raised, we need to remain open to adjusting our allocations to address emerging needs and opportunities.

Privacy Policy

In this Privacy Policy, "us", "we" or "our" means Manilla Solar Pty Ltd (ACN 670 201 493) and our related bodies corporate. We are committed to respecting your privacy. Our Privacy Policy sets out how we collect, use, store and disclose your personal information. Please access our Privacy Policy here: https://www.manillasolar.com.au/privacy.html

About Swarmer

Swarmer is an Australian equity crowdfunding platform connecting businesses and investors. Designed to support start-ups, growth companies and scale-ups we allow everyday investors to own a share in businesses that are the future. We hold Australian Financial Services License (AFS License #507867).

Find out more about becoming a shareholder via Equity Crowdfunding through Swarmer.