Public Buildings

Križevci Croatia

Crowdfunding - CrowdInvesting

CO2 emissions reduction 55 tones/year

Public Buildings

Green Energy Cooperative


PROJECT DESCRIPTION

Objectives & Characteristics:

Green Energy Cooperative (ZEZ) launched the first crowd-investing initiative in Croatia, supported by Križevci local authorities. Thanks to this initiative, a solar PV system is being installed on the rooftop of Križevci’s Development Center and Technology Park’s administrative building


The Measures

Green Energy Cooperative provides solar equipment for lease to the city of Križevci, the owner of the building, for 10 years. All investors sign a loan agreement with the Cooperative for 10 years as well, for which an annual interest on accrued funds is projected.

The modelled system (50 kW), installed on the rooftop of the business centre, will primarily cover the needs of the users of the centre in terms of electricity. The city pays the actual electricity consumption, and from the monthly savings it would return investment to citizen-investors. The energy surplus will be sold to the network.

After 10 years (required for the investment to pay off) the system is transferred into the city's ownership and continues to make savings.


The Model

Green Energy Cooperative is the initiator and implementing partner for this initiative. The project was developed together with partners from the city of Križevci, Regional Energy Agency North, Greenpeace Croatia, Solvis and ACT Group.

The City of Križevci provides administrative and financial support in the preparation phase and grants an energy saving annual fee for 10 years to the investors.

The cooperative used the crowd investment, micro-loan model to involve the citizens in the sustainable development of their city. Through this system, citizens lend money to the cooperative who is paying them back with 4.5% fixed interest.

The interest rate is set to be somewhat higher than the annual average inflation rate over the last 13 years and the annual interest rates given by commercial banks, so it should be interesting and attractive for lenders.


The Figures:

  • EUR 31,000 invested through crowdfunding
  • 10 days of crowdfunding to reach the amount needed to build the solar plant;
  • 50,000 kWh produced by the PV system each year
  • 55 tons CO2 saved each year;
  • 10 years until the investment will be returned;

TECHNICAL & FINANCIAL DETAILS


The Money

The total project worth is around € 65,000. Thanks to the crowd-investing initiative, ZEZ collected around € 31,000, enough to fully fund a 30 kW PV plant. The minimum investment chip was 1,000 kuna (€130), the maximum was 10,000 kuna (€1,300). The average investment was 4,000 kuna (500).


Financing scheme:

Crowdfunding - CrowdInvesting

Source of Funds:

Crowdfunding - CrowdInvesting

Phase:

Completed

Link:


KEY SUCCESS FACTORS (REPLICATION POTENTIAL)

The City of Križevci encourages its citizens to invest in local RE production, in accordance to the objectives set in their Sustainable Energy Action Plan.

For crowd-investing projects, intend to attract citizens – small investors, it is advisable to offer an interest rate higher than the one provided by commercial banks, in order to make it more attractive.

Crowdfunding for renewable energy has become quite common in the last few years. Many platforms are available to manage such projects and communicate with the participants. Furthermore, nowadays it is easier to obtain a good return in investment because of the decreasing costs of renewables