Summary
Pure Leapfrog developed a comprehensive business case for Lymm Community Energy’s (LCE) proposed 2.5MW solar PV installation at Wildersmoor Hall Farm.
Through detailed energy and financial modelling, we evaluated three business models including innovative routes to market via sleeved Private Purchase Agreements (PPAs) and private energy markets.
The work demonstrated that community matching (selling directly to local offtakers- the businesses and organisations that buy the electricity) offers the strongest balance of financial viability and community benefit, particularly where at least 65% of generation can be matched to local demand. This provided LCE with a clear roadmap for delivering their most ambitious project to date.
What problem are we trying to solve?
Community energy projects typically rely on standard export tariffs that offer limited revenue and minimal local engagement. For Lymm’s 2.5MW scheme, conventional routes couldn’t deliver the financial returns needed for viability. With a private wire connection to a single offtaker proving unfeasible, we needed to find innovative ways to connect locally generated renewable energy with local consumers whilst achieving near ‘behind the meter’ revenue levels (the higher prices generators can achieve when selling directly to consumers on the same site) within the regulatory framework of the Great Britain electricity market.
How are we doing this?
Pure Leapfrog conducted a thorough options appraisal, narrowing to three models for detailed assessment: community matching via sleeved PPA (where a licensed supplier facilitates the sale of electricity from generator to specific consumers) or private markets, community matching with demand-side battery storage (batteries installed at customer sites to store solar energy for later use), and standard export as a baseline.
We carried out load matching analysis using half-hourly consumption data, built financial projections across 30-40 year lifespans, and assessed regulatory requirements and commercial risks. Working with UrbanChain, we explored platforms for facilitating multiple sleeves or private market arrangements, enabling LCE to supply several local electricity buyers simultaneously. The modelling tested various scenarios for offtaker match percentages, export prices and inflation rates to identify viable pathways.
Pure Leapfrog delivered what we needed: a comprehensive assessment of business options and financial model for our solar farm. The team were responsive and flexible throughout, despite delays. We’d recommend them to other community energy organisations tackling similar projects.
Richard Pearce- Director, Lymm Community Energy Ltd
Who are we working with?
The project involves Pure Leapfrog, Lymm Community Energy, and UrbanChain (a licensed energy supplier specialising in half-hourly matching of generation to load). Lymm Community Energy have established a strong relationship with the local high school as a key potential offtaker, and have identified several other potential offtakers including road services, a village bakery, a nursery, and a garden centre within the local grid area.
What’s the innovation?
The innovation sits in applying sophisticated energy market mechanisms, traditionally used only by large commercial players, to enable genuine local supply for a community energy project. By exploring sleeved PPAs and private market platforms, we’re demonstrating how community generators can sell directly to multiple local consumers whilst maintaining regulatory compliance. The work also investigated demand-side battery storage to increase local consumption by an initial cohort of potential offtakers from 30% to 55% of total generation. We’ve shown how proper load matching analysis and financial stress testing can give community energy groups the confidence to pursue more complex, higher-value business models.
What did we learn?
Community matching business models are financially viable when properly structured but require securing a diverse portfolio of electricity buyers from the outset, with 65% match significantly reducing risk to the community group. Battery storage offers technical benefits but high capital costs (over £1,000/kW) make it unviable at portfolio level unless the electricity buyers co-invest (share the upfront costs). The gap between generator revenue and consumer prices roughly doubles due to platform and system costs, but final tariffs remain competitive. Standard export required at least 8.5p/kWh average to be viable. The energy market is evolving rapidly, with new settlement roles and flexibility opportunities likely to create additional revenue streams during the project’s 30-40 year lifespan, so projects need to be structured with this evolution in mind whilst remaining robust against current conditions.
What’s next?
Lymm Community Energy are planning to go from feasibility to reality – raising funds for the project through a community share offer and other investment. We’re excited to continue to collaborate them on this next phase.
