share offerInvest in Community-owned renewable energy Project

solar PV on the roofs of the Loughborough estate

> offer opens on Thursday 16th february 2012 and is scheduled to close at midnight on saturday 10th March 2012.

soLar 1

01. Director’s Letter• Declaration

02. brixton energy soLar 1• TheCo-operative• TheProject• IncomeGeneration• TheCommunityEnergyEfficiencyFund

03. share offer in community-owneD renewabLe energy Project • TheOffer• ReturnonInvestment• TaxationandEISRelief• TheFeed-InTariff• InstallationandOperationoftheSolarArray• FinancialModel

04. who we are• TheTEAM

05. terms anD conDitions06. gLossary07. aPPLication form• AmounttoInvest• IndividualApplicantDetails• Declaration• NomineeAppointmentForm

>ConTenT

01

page 2

page 3

page 6

page 12

page 14page 16page 18

ThisShareOffercontainsaninvitationtoinvestinthewithdrawablesharecapitalofBrixtonEnergySolar1.Weareseekingtoraiseapproximately£75,000byMarch10thtoinvestinupto50kWofcommunity-ownedsolarphotovoltaicenergygenerationontheroofofElmoreHouseintheLoughboroughEstate,Brixton.ThisprojectwillincreaserenewableenergygenerationinBrixton.ItwillbenefitfromtheUKGovernment’sfeed-intariffforsolarphotovoltaicinstallationsandwillprovideafinancialandsocialreturnontheinvestment.

BrixtonEnergySolar1isaCo-operativesocietyandthereforeeachmemberwillhaveonevoteeach(regardlessofthenumberofsharesheld).Themembersoftheco-operativewilldetermine,collectivelyandco-operatively,whattodowithanyfinancialreturnthatresultsfromthisinvestment.Thismayincludeacombinationofafinancialreturntotheinvestors,investmentinlocalenergy-efficiencyinitiativesandreinvestmenttoenableotherrenewableenergyprojects.

TheinformationcontainedinthisShareOfferhasbeenpreparedunderthesupervisionofthedirectorsoftheBrixtonEnergySolar1,whotakeresponsibilityforitscontents.Tothebestoftheirknowledge,allinformationisaccurate.

ThisShareOfferisexemptfromtheFinancialServicesandMarketsAct2000orsubsidiaryregulations,whichmeansyouhavenorightofcomplainttoanombudsman.AnindustrialandprovidentsocietyisregisteredwithbutnotauthorisedbytheFinancialServicesAuthorityandthereforethemoneyyoupayforyoursharesisnotsafeguardedbyanydepositorprotectionschemeordisputeresolutionscheme.

FulldetailsonthelegalcomplianceandthetermsoftheShareOfferaresetoutinthemainbodyoftheShareOffer.TechnicalandotherwordsandphrasesusedwithaparticularmeaninginthisShareOfferaredefinedandexplainedintheglossary.Thissummaryshouldbereadasanintroductiononly.Asaprospectiveinvestor,youshouldreadthewholeofthisShareOfferandshouldbeawareofanyriskstheyaretakinginmakinganinvestment.YoushouldalsoreadtherulesoftheCo-operative(the“Rules”),whichareavailableforviewingatwww.brixtonenergy.co.uk.

AninvestmentinthesharesofferedinthisShareOffercarriesrisksandyoumaylosethevalueofyourinvestment.Ifyouhaveanydoubtsorquestions,youshouldseekindependentadvice.

Theinitialofferperiodisforfiveweeks.AtthediscretionoftheBoard,theoffermaybeextendedforuptoafurthertwelveweeks.Intheeventthattheofferisoversubscribed,prioritywillbegiventolocalresidents(geographicallyclosesttothesolararray).

ThisdocumentdetailsandcontainsaninvitationtosubscribeforsharesinBrixtonEnergySolar1Co-operativeLimited(“BrixtonEnergySolar1”orthe“Co-operative”).

BrixtonEnergySolar1isanewCo-operativesociety,registeredundertheIndustrialandProvidentSocietiesAct1965(RegistrationNo.31433).Theco-operative’smissionistoenablepeopleinsouthLondonandbeyondtoinvestinrenewableenergygenerationinBrixtonandraisefundsforenergyefficiencyinitiatives.

suMMary InforMaTIon 16thFebruary2012

DearPotentialInvestorsandCo-operativeMembers,

BrixtonEnergySolar1isanewCo-operativesetuptoenablelocalpeopletoinvestinrenewableenergygenerationinBrixtonandraisefundsforenergyefficiencyinitiatives.IfyouinvestinBrixtonEnergySolar1,yourmoneywillbeputtoworkstraightawaytofinancetheinstallationofamajorsolarpowerstationinBrixton.

Thepowerstation,plannedfortheroofofoneofthehousingblocksontheLoughboroughEstate,willsaveapproximately20tonnesofCO2everyyearbydisplacingelectricitygeneratedbycoalandgaspowerstations.Theincomefromtheelectricitywillbeusedtosupportlocalenergyefficiencyprojectswhilealsoprovidingco-operativememberswithanannualreturnontheirinvestment.Theincomefromthepowerstationwillbederivedprincipallyfromthegovernment’sFeed-intariffscheme,whichisguaranteedfor25years.

Moreandmorepeoplenowaccepttheurgentneedtoreduceourunhealthydependenceonfossilfuels.Manyofusalsorealisethatwecannotwaitforotherstotackletheproblem.Weneedtoseeactionnotonlyfromgovernmentbutalsofromindividuals,householdsandcommunities.BrixtonEnergySolar1willbesouthLondon’spioneeringcommunity-fundedrenewableenergystation.Wehopethatyouwilljoinusinmakingthishappen.

dIreCTors’ LeTTer01.

soLar 1

DecLaration:BrixtonEnergySolar1Co-operativeLimitedandeachofitsDirectorswhosenamesaresetoutbelowherebydeclarethat,havingtakenallreasonablecaretoensurethatsuchisthecase,theinformationcontainedinthisShareOfferis,tothebestoftheirknowledge,inaccordancewiththefactsandcontainsnoomissionlikelytoaffectitsimport.

andre Pinho

will anderson

agamemnon otero

02

brIxTon energy soLar 102.brixton energy solar 1 co-operative Limited is a new co-operative society, registered under the industrial and Provident societies act 1965 (registration no. 31433). the co-operative offers an exciting new opportunity for individuals to support the generation of solar power in brixton and contribute to wider action to reduce our dependence on fossil fuels.

Theproject’saimsare:

1.TogenerateasmuchrenewableenergyaseconomicallypossibleontheroofofElmoreHouseintheLoughboroughEstate.2.Tocreateenoughfinancialsurplustofundlocalenergyefficiencyprojects,bothpracticalandeducational.3.Toengagewiththelocalcommunityasstakeholdersin,andbeneficiariesof,theproject,inresponsetothechallengesofclimatechange.4.TobecomeanexemplarforsimilarprojectsinLondonandthroughouttheUK.

FollowingamodelthathasbeensuccessfullyusedelsewhereintheUK,BrixtonEnergySolar1hasbeenestablishedasaco-operativesociety.Co-operativesarenot-for-profitorganisationsthatarejointlyownedandoperatedbyagroupofpeoplefortheirmutualbenefit.Theyaredemocraticenterprises,operatingwithaonemember,onevotepolicy.Thismeans,forinstance,thatthemembersoftheCo-operativewilldecidecollectivelywhowillserveontheBoardofDirectorsandhowtodivideanddistributetheincomegeneratedfromtheproject(inaccordancewiththeRules).

BrixtonEnergySolar1isasocialenterprisewhichseekstoachieverealsocialandenvironmentaloutcomes.IfyouinvestintheCo-operative,youwillbejoiningthiscollective,democratic,community-basedefforttobringaboutrealchange.Althoughweofferamodestfinancialreturnonyourinvestment,wehopethatyouwillalsovaluethewidersocialandenvironmentalreturnthatyourinvestmentwillbring.

The Co-oPeraTIVe

The ProjeCT

brixton energy solar 1 is focused squarely on delivering benefits for the local community. we hope it will be the first of many similar initiatives in south London. the project is the first to be implemented under the larger umbrella of repowering south London, a community-led initiative that aims to generate renewable energy, develop opportunities for community investments, increase resilience by reducing dependence on big energy companies, use retained profits to educate residents about energy efficiency, tackle fuel poverty and provide training and employment for local people.

Theprojectwillseetheinstallationofupto50kWofsolarelectric(photovoltaic)panelsontheroofofElmoreHouse,oneofthehousingblocksintheLoughboroughEstate,Brixton.TheEstateisownedbyLambethCouncilbutmanagedbyUnitedResidentsHousing(URH),anarms-lengthmanagementorganisation.WesecuredapprovalfromURHandLoughboroughEstateManagementBoard(LEMB)toinstallsolarpanelsontherooffollowingconsultationeventswiththeresidentsoftheestateinOctober2011.WeareworkingwithLambethCounciltosecureasatisfactoryleaseforthe25-yearlifeoftheGovernments’Feed-inTariff.WeaimforthistobeagreedbythefirstweekofMarch2012.

WeintendforsomeoftheelectricitygeneratedfromthesolarpanelstobeusedbyURHdirectlytopowertheliftsinElmoreHouse.WearecurrentlyindiscussionswithURHandtheirelectricityprovidertoensurethiswillbedoneefficientlyandeffectively.TheremainderofelectricitygeneratedbytheprojectwillbeexportedtotheNationalGrid.WecannotprovideadirectsupplyofelectricityfromtheprojecttotheflatsinElmoreHousebecausetheyaremeteredindividually.However,weintendthatthesehouseholdsshouldbethefirstbeneficiariesofthesocialfundgeneratedbyincomefromtheproject,withinitialemphasisondraught-busting,otherenergyefficiencyimprovementsandeducationinitiatives.

03

brIxTon energy soLar 1

TheCo-operativewillreceiveincomefrom:a. the feed-in tariff (fit), a 25-year inflation-protected price legally required by the government to be paid by the electricity supplier at Loughborough estate to the co-operative for generating electricity from renewable resources;b. the possible sale of discounted electricity to urh for any energy that is consumed on-site,c. the sale of excess electricity exported to the national grid.

ThemainsourceofprojectincomeisfromtheFeed-inTariff,whichpaysaninflation-linkedrateof15.2pforeverykWhofelectricitywegenerate.MostofthiselectricitywillbeexportedtotheNationalGridundera‘powerpurchaseagreement’(PPA)withthelocalelectricityprovider. An exportmeterwillbeinstalledandweanticipatebeingpaid3.1p/kWhforthisexportedelectricity. Inaddition,underthearrangementsofthisproject,we maybeabletosellpowerthatisusedbyURHonsiteunderaseparate PPA.However,URHiscurrentlyindiscussionswithitselectricityprovidertorenegotiatetheratesforelectricityusedatElmoreHouse.Accordingly,wearecurrentlyunabletosecuredefinitivetermsforaPPAwithURHand/oritselectricityprovider.Weintendtoresolvethisissuebeforetheinstallationoftheproject.Inanyevent,thedirectorswillactinthebestinterestsoftheCo-operativetosecureafinancialreturnand,inlinewiththeCo-operative’ssocialandenvironmentalaims,providerenewableenergytoElmoreHouse.

‘Weareconfidentthatthisprojectcanstilldeliverallthreecoreoutcomes:amajorincreaseinrenewableenergygenerationinBrixton;deliverenergyefficiencyinitiativesintheareathroughtheCommunityEnergyEfficiencyFund;provideagreeninvestmentopportunitytoresidents.

InCoMe generaTIon

The CoMMunITy energy effICIenCy fund

InlinewiththeethosofaCo-operativeorganisationandsocialenterprise,thisprojecthasbeenstructuredsothatsomeoftheincomegeneratedwillbesetasideforaCommunityEnergyEfficiencyFund.ThedirectorsintendforthisfundtobeusedtoimprovetheenergyefficiencyofthehousingstockinLoughboroughEstateandBrixtonasawhole.TheuseoftheFundwillbeoverseenbythedirectorsoftheCo-operative.However,initiativeswillalwaysbedevelopedthroughconsultationwiththelocalcommunityandbyvotingfromthefullco-operativemembers.

Theseinitiativesarelikelytoinclude:a.thepromotionandinstallationofrelativelylow-costenergyefficiencymeasures,suchas‘draught-busting’;b.informationandguidanceaboutopportunitiestoinstallmoresubstantialmeasures,suchasthoseproposedinthegovernment’sGreenDeal;c.localworkshopstoexploreday-to-daypracticalopportunitiesandlifestylechangestoreduceenergyconsumptionandcosts.InaccordancewiththeCo-operative’sRules,themembersoftheCo-operativewilldeterminecollectivelyateachannualgeneralmeetinghowmuchprofitfromthetheprojectwillbesetasidefortheEnergyEfficiencyFund.Thedirectorsproposethatthisamountshouldaverageapproximately20%ofnetprofits.

‘WeanticipatethatthisFundwillreceiveincomefromothersourcesbeyondthesolarpowerstationitself.Infact,RepoweringSouthLondonhassecuredagrantfromthegovernment’sLocalEnergyAssessmentFundtodeliverenergyefficiencytrainingandworkshopstoprovideadviceandhelpresidentsreducetheirenergyconsumptionandfuelbills.Weenvisionthattheannualincomefromthegenerationofsolarenergywillprovideasecurelongtermplatformuponwhichtopursuewiderenergyefficiencyfundraisingandactivity.

04

05

InVITaTIon To PurChase shares

03.brixton energy solar 1 is offering ordinary withdrawable shares for purchase. each ordinary share has a nominal value of £1.00. the minimum shareholding is £250 and the maximum (set by law) is £20,000. membership is open to british citizens and/or uK residents aged 16 and over. corporate bodies, voluntary organisations and public sector investors may also become members.

ThisShareOfferseekstoraisesufficientfundstofinancetheinstallationofasolararrayofupto50kWontheroofofElmoreHouseintheLoughboroughEstate,Brixton.Weareseekingtoraiseapproximately£75,000,theestimatedtotalcapitalcost.Oncethesolararrayisinstalled,allannualrunningandadministrativecosts,includinginsurance,willbemetthroughtheproject’sannualrevenuestream.

Theinitialofferperiodisforthreeweeksfrom16thFebruary2012until10thMarch.AtthediscretionoftheBoard,theoffermaybeextendedforuptoafurthertwelveweeks.Intheeventthattheofferisoversubscribed,prioritywillbegiventolocalresidents,i.e.thoselivinginpostcodesgeographicallyclosesttotheLoughboroughEstate.

AgreatdealofinvestmenthasalreadybeenmadeinBrixtonEnergySolar1.Alldevelopmentcostshavebeenmet.Wehavereceivedsubstantialsupportfrom:

Moreinformationaboutsupportersisincludedinpage12.

Asalldevelopmentcostshavebeenmet,andallrunningcostswillbemetbytheincomefromthegenerationofsolarpower,ouraiminthisShareOfferistoraisemoneyforthecapitalcostsonly.WeareinnegotiationswithleadinginstallersinthesolarindustrywiththeaimofinstallingthepanelsinMarch2012.

06

• brixton Low carbon Zone 

• carbon Leapfrog 

• Karmarama

• Lambeth council

• Loughborough estate management board

• ramboll

• sharenergy 

• simmons & simmons 

• transition town brixton

• united resident housing

• many volunteers.

TaxaTIon and eIs reLIef

reTurn on InVesTMenT

WehaveappliedforadvanceassurancefromHMRevenue&CustomsthattheOfferShareswillqualifyfortaxreliefundertheEnterpriseInvestmentScheme(EIS).Ifthisisgranted(whichisnotguaranteed),thisreliefofferscertaintaxbenefitstoinvestors.

Incometaxreliefisavailabletoindividualswhosubscribeforaminimuminvestmentof£500worthofshares.Thereliefis30%ofthecostoftheshares,tobesetagainsttheindividual’sincometaxliabilityforthetaxyearinwhichtheinvestmentwasmade.A‘carryback’facilityallowsallorpartofthecostofsharesacquiredinonetaxyeartobetreatedasthoughthoseshareshadbeenacquiredintheprecedingtaxyear.Thisreliefcannotbesetoffagainstannualinterestpaymentincome,asthetaxcreditattachedtotheannualinterestpaymentisnotrecoverable.Thesharesmustbeheldforacertainperiodorincometaxreliefwillbewithdrawn.Generally,thisisthreeyearsfromthedatetheshareswereissued.

IftheCo-operativedoesnotcomplywiththerequirementsofEISforthequalifyingperiod,thetaxreliefswillbewithdrawn.TheBoardwillreasonablyseektoconductthebusinessofBrixtonEnergySolar1sothatitqualifiesundertheEISbutthereisnoguaranteethatitwillbeabletodoso.

Youshouldnotassumethatthesebenefitswillautomaticallyaccrueoninvestmentinthisproject.YoushouldseekindependentfinancialadviceifyouintendtoclaimreliefundertheEIS.

Theestimatedannualreturntomembersisbasedonprojectedincomeandexpenditureoverthelifeofthesolararrayusingtheassumptionsstatedinthebusinesscasebelow.Youshouldconsidertheseassumptionscarefully.Youshouldalsoconsidertheidentifiedrisks.WebelievethatBrixtonEnergySolar1offersacomparativelysecureinvestmentbecauseitreliesontheFeed-inTariff,aprogrammeimplementedandguaranteedbythegovernmentfor25years.However,noinvestmentisrisk-freeandwecannotguaranteetherateoftheannualinterestpaymentbecauseoftheothercostsandrisksoftheproject.

Ifyoubuyshares,youwillautomaticallybecomeamemberofBrixtonEnergySolar1whichoperatesonaonemember,onevotebasis.Youcannottradeyoursharesonastockexchangeortransferthemtootherindividuals.Thetransferofsharesisonlypossiblefollowingthedeathofamember(ifyounominatesomeone),orotherexceptionalcircumstancesincludedintheRules.

OnceyouhaveboughtsharesinBrixtonEnergySolar1,youwillnormallykeepthemuntiltheendoftheproject,atwhichtimealloutstandingshareswillberepaidinfulltomembers.Forexample,ifyouinvest£5,000youcanexpecttoreceiveanannualinterestpaidasreturnonyourinvestmentandrepaymentoftheinitial£5,000investmentattheendoftheproject’slifein25years.Youcanapplyforthewithdrawalofallorpartofyourcapital(afterthefirstthreeyears),butwithdrawalofcapitalisattheBoard’sdiscretiontoensurethehealthandstabilityoftheproject.Youshouldbeawarethatanywithdrawalofsharecapitalmayaffectyourrights

fortaxreliefundertheEnterpriseInvestmentSchemeandyoushouldseekindependentadviceonthismatterifthisaffectsyou.

BecauseBrixtonEnergySolar1isaCo-operative,themembersoftheCo-operativewilldecidecollectivelyhowtodivideanddistributetheincomegeneratedfromtheprojectinaccordancewiththeRules.TheRulesprovidethatprofitsoftheprojectwillbeappliedinsuchproportionsasthemembersoftheCo-operativeshalldecideateachannualgeneralmeeting,inaccordancewiththefollowingprinciples:a.firstly,toageneralreserveforcontinuationanddevelopmentoftheCo-operative;b.secondly,topayashareinteresttomembers;andc.thirdly,tomakepaymentsforsocialorcharitablepurposes(e.g.,theCommunityEnergyEfficiencyFund).

TheBoardofDirectorshastheauthoritytopayinterimannualinterestpaymentwithouttheapprovalofageneralmeetingoftheCo-operative.ThecurrentdirectorsdonotpresentlyintendtomakeanyinterimpaymentswithoutapprovalofageneralmeetingofCo-operativemembers.

TheCo-operative’sgoverningdocument(TheRules)explainsmembers’rightsaswellasdetailsofthenatureofthesharesandthemanagementandconstitutionoftheCo-operative.TheycanbeexaminedontheBrixtonEnergywebsite(www.brixtonenergy.co.uk)orsentviaemailonrequest.

07

The feed-In TarIff

08

In2010,theUKGovernmentintroducedaFeed-inTariff(FIT)schemeforthegenerationofelectricityfromsmall-scalerenewableenergyprojects,includingsolarphotovoltaic.TheFeed-intariffwillbetheprincipalsourceofincomeforBrixtonEnergySolar1.

Thegovernment’sstatedaimfortheFITistoencouragethedeploymentofsmall-scale,low-carbonelectricitygeneration,particularlybyorganisations,businesses,communitiesandindividualsthathavenottraditionallyengagedintheelectricitymarket.TheFITschemerequireselectricitysupplierstopaysmall-scalerenewableenergygeneratorsbothforalltheelectricitytheygenerate(thegenerationtariff)andforanysurpluselectricitytheyexporttothegrid(theexporttariff).Electricitysuppliersarerequiredbylawtopaythetarifftoanyonewhoinstallssolarelectricpanelsuptoamaximumsizeof5MW.

TheFITwasdesignedtoprovideinvestorsinrenewableenergywithlong-termpricesecurity:paymentsundertheschemeareguaranteedfor25yearsfromthedatewhentheinstallationiscommissioned.Thetariffisinflation-linked,increasingfrom1stAprileachyearbytherateofinflation(usingtheRetailPriceIndex)inthepreviouscalendaryear.However,overthelast12months,theGovernmenthastwicereviewed(andreduced)theratesatwhichthetariffsareset.Thishascreatedaconsiderableuncertaintyinthemarket.

On31October2011,theGovernmentannouncedtheFITComprehensiveReviewPhase1Consultationdocumentwhichclosedon23December2011.TheGovernment’sdecisiononthenewtariffsforsolarPV,followingtheconsultation,wasannouncedon19January2012.Thelicencemodificationsnecessarytoimplementthenewtariffswillapplythenewtariffsfrom1April2012toanynewsolarPVinstallationwithaninstallationdateonorafter3March2012.Thegenerationtariffforprojectsbetween10-50kWinstalledcapacitywillbe15.2p/kWh.WehaveassumedthistariffratewillapplytoourproposedprojectandhaveuseditforthecalculationsintheindicativeFinancialModeldiscussedbelow.

YoumayhaveheardorreadthattheGovernmentlostacourtcasebroughtbyFriendsoftheEarthandothersthattheproposedchangestotheFITwere“unlawful.”Whilethisistrue,andanappealbeforetheSupremeCourtispending,thisactiononlyrelatestoinstallationsbetween12December2011and3March2012and,therefore,doesnotrelatetoourproposedproject.

TheGovernmentalsoannouncedthatinstallationsafter1April2012willhaveanenergyefficiencyrequirement,pursuanttowhichprojectsmustwillneedtodemonstratethatthebuildingtowhichthesolarPVinstallationisattachedorwiredtoprovideelectricityhasanEnergyPerformanceCertificate(EPC)ratingofLevelDorabove.Weintendforthisprojecttobeinstalledpriorto1April.Ifthisisdelayedforanyreason,ElmoreHousehasanEPCratingofLevelDand,therefore,theprojectwouldnotbeaffectedbythisrequirement.

On9February2012,theGovernmentlauncheditsFITComprehensiveReviewPhase2AConsultationdocument.ThisconsultationisopenuntilearlyAprilwithanychangesproposedtotakeeffectfrom1July2012which,accordingly,shouldnotaffectthisproject.

Undercurrentlegislation,theFITisavailablefor25yearsafterthesolarpanelshavebeencommissioned.Solarpanelshavebeeningeneralusagearoundtheworldformorethan40years.BasedontheperformanceofexistingsolarPVarraysthroughouttheworld,thepanelsarelikelytohaveaconsiderableamountoflifeleftinthemafter25yearsandweintendtocontinuetousethepanelstogenerateandproviderenewableenergyinBrixtonformanymoreyears.However,thereisnoguaranteeofanyincomefromthepanelsduringthislatterstageoftheirlives.Consequently,areviewofoptionsforthearraywillbeschedulednearertheendofthe25-yearlifeundertheFITtodecidewhatshouldhappentothepanelsandwhethertodissolvetheCo-operativeatthatpoint.

InsTaLLaTIon and oPeraTIon of The soLar array

Solarpanelsareratedunderlaboratoryconditionforapeakoutputunderaspecificintensityofsunlight.TheratedpeakoutputoftheBrixtonEnergySolar1photovoltaicarraywillbeupto50kW.However,theactualpoweroutputofaphotovoltaicpanelis,inpractice,alwayslowerthanitsratedoutputanddependsonmanyfactorsincludingtheamountofsolarenergythatreachesthepanels,whichdependsonseason,latitudeandtimeofday;theangleanddirectionwhichthepanelsface;andtheweather.Whatmattersmostforourpurposesisnottheratedpeakpoweroutputbuttheestimatedtotalannualenergyoutput.

Weestimatethata50kWarrayonElmoreHousewillgenerateapproximately40,000kWhofelectricityperyear(onaverage).ThisestimateisbasedonindustrydataandexperienceofsolarpowergenerationelsewhereinBrixton.MostofthepanelswillbemountedonthelongsouthernedgeoftheroofofElmoreHouseontheLoughboroughEstatewheretheywillexperienceminimalshading.Someofthepanelswillbeinstalledtotherearoftheroofwheretheywillexperiencelimitedshadingfromchimneystacksinthewintermonths.Thisshouldhaveasmallimpactontotalgenerationaswintergenerationisaverysmallpartoftotalpoweroutputacrosstheyear.

ThepanelswillbewiredtoinverterswithinthebuildingwhichconvertthelowvoltageDCoutputfromthepanelsintoACpower.Thiselectricitywillfeedintothemainelectricaldistributionpointforthebuildingfromwhereitwilleitherbeusedtomeetimmediatedemandfromcommunalareas,suchaslifts,orexportedtotheNationalGrid.Ameterwillbeinstalledtorecordtheamountofelectricitygeneratedbytheproject.

AsnotedaboveinBrixtonEnergySolar1-IncomeGeneration,weintendtoinstallaseparatemetertorecordtheamountofelectricitythatisexportedtotheNationalGridandenterintoseparatePPAswitheachof

URHanditselectricityproviders.Weintendtoresolvethisissuebeforetheinstallationoftheprojectand,inanyevent,thedirectorswillactinthebestinterestsoftheCo-operativetosecureafinancialreturnand,inlinewiththeCo-operative’ssocialandenvironmentalaims,providerenewableenergytoElmoreHouse.

Solarphotovoltaicpanelsaresolid-statetechnologywithnomovingparts.Assuch,theytendtoberobustandreliable,requiringaminimumofmaintenanceonceinstalledandcommissioned.Theycanremainoperationalfordecadesalthoughexperiencethroughoutthesolarindustryhasshownthattheirefficiencyandoutputtendstodeclineovertheyears.Thisisaccountedforinthefinancialmodelbelow.Theinvertershaveashorterlifetimeandgenerallyneedtobereplacedevery15years.Thecostofonereplacementinverterhasbeenincludedintherunningcostsfortheproject.Warrantyoftheequipmentanditsinstallationwillbeprovidedbythemanufacturersandtheinstallers,respectively.Insuranceisincludedintheannualrunningcosts,coveredbyincomefromthepanels.

TheroofisbeingleasedtoBrixtonEnergySolar1byLondonBoroughofLambethwiththesupportofUnitedResidentHousing(URH)inreturnforadiscountedelectricitysupplytoURH.WeareworkingwithLambethCounciltosecure signoff on theleaseagreementforthe25yearlifeoftheGovernment’sFeed-inTariff.

BrixtonEnergySolar1willremaintheownerofthepanelsthroughoutthe25yearlifeoftheproject.TheboardanddirectorsofBrixtonEnergySolar1remainresponsiblefortheongoingoperation,monitoringandmaintenanceofthepanels.

09

fInanCIaL ModeL

10

Theinformationprovidedhereisgivenasanillustrationonlyofthepossiblefinancialreturnsthatwillbegeneratedfromthisproject.Thereareanumberofvariablesthatmayaffecttheamountofincomegeneratedbythisprojectand,therefore,itisnotpossibletoprovideadefinitiveestimateoftheamountoffinancialreturnforthisproject.BrixtonEnergySolar1intendstoawardamodestfinancialreturnonyourinvestmentinordertoprovideareasonableincentiveforinvestorstomaintaintheirsupport,however,investorsshouldnotexpectpaymentsthatmirrorthereturnsofcommercialinvestments.TheFITforsolarenergyincludesagenerationtariffbasedonthesizeofthesystemandtheamountofpower(measuredinkWh)thatthesystemgeneratesandanexporttariffbasedontheamountofenergyfromthesystemthatisexportedtothenationalgrid.PaymentsundertheFITareguaranteedfor25yearsandthepaymentratesareindex-linkedtoinflation(usingtheRetailPriceIndex).caPitaL costs of Project

Theanticipatedcostforthepurchaseandinstallationofupto50kWinstalledcapacityfortheBrixtonEnergySolar1projectis£75,000.Thisisbasedonanestimatedcostof£1.50perratedWattoutput.Ifthepricepaidforthesystemprovestobehigherorlowerthan£75,000,theinvestorandsocialreturnsoninvestmentwillbeadjustedaccordingly.Spreadoutacrossthelifetimeoftheproject,suchadjustmentsarelikelytobeminorunlessthefinalcapitalcostissignificantlyhigher.

inDicative revenues from Project

BasedontheGovernment’srecentannouncementsregardingtheFIT(seeaboveinTheFeed-inTariff),wehaveassumedthatthegenerationtarifffortheproposedsystemwillbe15.2p/kWhandtheexporttariffwillbe

3.1p/kWh.Theamountofrevenuegeneratedfromtheprojectwilldependontheamountofavailablesunlightforanygivenyearwhich,inpractice,willvaryfromyeartoyear.Basedoncurrentmodels,weestimatethattheprojectwillaverageapproximately40,000kWhofannualestimatedoutput.Theabilityofsolarphotovoltaiccellstoconvertsunlighttoelectricalenergydiminishesovertime.Wehaveassumed1%lossofefficiencyeveryyear.

Weestimatethattheannualrevenuefortheprojectwillbederivedfromthefollowing:

a)Feed-intariffpaymentsforallenergygenerated.Thisisestimatedtobe£6,080inthefirstyear(40,000kWh@15.2p/kWh).Thetariffwillbeadjustedannuallyforinflationandweestimatea1%declineinoutputperyearduetothenaturalperformancedeclineofsolarpanels.

b)Feed-intariffpaymentsforallenergyexportedtotheGrid.Thisisestimatedtobe£1,116inthefirstyear(36,000kWh@3.1p/kWh).Thisincomewillalsobeannuallyadjustedforinflationandsystemperformance.

c)Thesaleofelectricitytothebuildingoperator(UnitedResidentsHousing)forimmediateuseonsite.Thisisestimatedtobe£320inthefirstyear(4,000kWh@8p/kWh).Thisincomewillalsobeannuallyadjustedforinflationandsystemperformance.

Thetotalestimatedincomeinthefirstyearisthereforeestimatedtobe£7,516.Thisestimateassumesthatweareabletoinstallanexportmeterontheprojectandthat90%ofthegeneratedpowerisexportedtotheNationalGridwiththeremaining10%beingpurchasedbyURHforuseatElmoreHouse.Ifweareunabletoinstallanexportmeter,theestimatedexportincomefromtheprojectwillbe£620inthefirstyear(20,000kWH@3.1p/kWh)andthetotalestimatedincomewouldbe£6,700.

11

inDicative oPerating costs of Project

Aportionofrevenuewillbesetasideannuallyfortheinsuranceandmaintenanceoftheproject,theadministrationofinvestmentsandtheeventualpaybackofinvestedcapital.

WeestimatethatongoingcostsfortheoperationandmaintenanceofthesolarPVequipmentwillbeapproximately£1,500annuallyand£1,130forthemaintenanceoftheCo-operative,includingpreparationofannualreportsanddistributionofinterestpayments.

Thetotalestimatedcostsinthefirstyeararethereforeestimatedtobe£2,630.

inDicative Distribution of annuaL Profits from Project

Afteralloperatingexpensesarepaidontheproject,theprojectshouldbegeneratingannualprofits.Forinstance,basedontheestimatedfiguresabove,weassumethatnetprofitsaftercostsinthefirstyearwillbeapproximately£4,886.

InaccordancewiththeCo-operative’sRules,thememberswilldetermineateachannualgeneralmeetinghowtoapportiontheprofits:• firstly,toageneralreserveforthecontinuationanddevelopmentoftheCo-operativeandthefurtheranceofitsobjectives;• secondly,inpayingshareinteresttoitsmembers;and• thirdly,inmakingpaymentsforsocialorcharitablepurposessuchastheCommunityEnergyEfficiencyFund.

Thedirectorsproposethatthisrevenuewouldbedividedasfollows:

1)Provisionforpaybackofinitialinvestedcapital.Everyyear,aportionofannualprofitswillbesetasideandinvestedinfixed-termdepositswithourbank,theCo-operativeBank,toguaranteerepaymentoftheinitialcapitalattheendoftheproject.Inaddition,themembersmaydeterminetosetasideadditionalamountsasageneralreserveforthecontinuationanddevelopmentofBrixtonEnergySolar1.

2)Theremainingrevenuetobedividedbetweenpayinganinterestpaymenttoinvestors(approximately80%)andinvestingintheCommunityEnergyEfficiencyFundorsimilarsocialandcharitablepurposes(approximately20%).

inDicative return

Iftheseestimatesarecorrect,thiswoulddeliveraninvestorreturninthefirstyearofapproximately2.87%andacontributiontotheCommunityEnergyEfficiencyFundof£538.ThecumulativeCommunityEnergyEfficiencyFundoverthelifetimeoftheprojectisestimatedtobeapproximately“£15,000.Theaverageinvestorannualinterestpaymentisestimatedtobe3.15%peryear.

brixton energy solar 1 is a project of repowering south London, a community-led initiative which aims to generate renewable energy, develop opportunities for a community investment vehicle, increase resilience by reducing dependence on big energy companies, use retained profits to educate residents about energy efficiency, tackle fuel poverty and provide training and employment for local people.

BrixtonEnergySolar1Co-operativeLimitedhasbeendevelopedinpartnershipwiththefollowingorganisations:

TransitionTownBrixton(TTB)acommunity-basedmovementwithapracticalapproachtopreparingforalow-carbonfuture.Forthelastcoupleofyears,TTBhavebeenexploringwaysofincreasingenergyefficiencyandusingrenewableenergyinBrixton.BrixtonEnergySolar1isalignedwiththeaimsoftheTransitionmovement.

TheBrixtonLowCarbonZone(LCZ)aprojectofLambethCouncilhasactivelysupportedthedevelopmentoftheCo-operative.TheBrixtonLCZisoneoftenzonesacrossLondonlaunchedbytheMayorofLondoninSeptember2009.TheaimoftheBrixtonLCZistoinvolveresidentsandbusinessesincarbonreductionthroughcommunity-ledinitiativestoachievea20%reductionincarbonemissionsintimefortheOlympics.TheinstallationandgenerationofrenewableenergyontheLoughboroughhousingestatewillcontributetowardstheBrixtonLCZcarbonemissionstarget.

LambethCouncilstrivestogivepeoplemoreinvolvementandcontroloftheservicestheyuseandtheplaceswheretheylivebyputtingcouncilresourcesintheirhands.BrixtonEnergyCo-operativewillseeresidentsgeneratingtheirownenergyandreducingcarbonemissionsrealisingLambethCouncil’sambitionofmovingtowardsaCo-operativeCouncil.

UnitedResidentHousingandLoughboroughEstateManagementBoardhavebeenearlychampionsofBrixtonEnergySolar1.TheirsupporthasbeeninstrumentalinthedevelopmentoftheprojectbyagreeingtotheinstallationofsolarpanelsontheroofsoftheLoughboroughEstate.

Wehavereceivedadviceandsupportfromthefollowingorganisations:

• carbon Leapfrog,business-ledcharitythatgalvanisesandchannelshigh-value,professionaladvicefromleadingserviceprovidersintoUKandinternationalcarbonreductionprojects,whichprovidedlegaladviceandsupportinthedevelopmentoftheproject;

• KarmaramaoneofBritain’stopcreativeagencies,whichprovidedassistanceinPRStrategy;

• rambolloneofEurope’sleadingconsultingengineeringcompanies,whichprovidedfreestructuralengineeringadviceontheinstallationoftheproject;

• sharenergyaco-operativewhichprovidesexpertiseandfundingtocommunitygroupstohelpdeveloprenewableenergyprojectsintheirarea.FivecommunitygroupshaveestablishedusingtheSharenergyco-operativemodel,twoofwhicharesolarco-ops;and

• simmons & simmons aworldclassinternationallawfirm,whichprovidedfreelegaladviceonthisShareOfferdocumentandtheleasedocumentsforuseofElmoreHouse.

• volunteers withadiverserangeofexpertiseincludingenergyefficiency,renewableenergy,research,projectmanagement,journalism,engineering,webdevelopment,communications, financeandbusinessdevelopment.

who are we04.

TOWN

12

Becky Payne(CompanySecretary)haslivedinBrixtonsince1985.Shehasworkedforover25yearsintheheritageworld.Shehasbeenapolicyandgrantofficerwithextensiveexperienceinadministration,buildingcontracts,engagingwithlocalcommunitiesandgivingadviceonsustaininghistoricbuildings.BeckyhasheldexecutivepositionsinpublicandprivateinstitutionsincludingEnglishHeritageandtheChurchofEngland’sChurchBuildingsDivision.Nowcurrentlyworkingasafreelanceconsultantandresearcheronsustaininghistoricplacesofworshipthroughwidercommunityuse.

Kees FrederiksleadstheGreenCommunityChampionsprogramwithintheBrixtonLowCarbonZone,acommunity-ledinitiativeaimingfora20.12%reductionincarbonemissionsintimefortheOlympics.Thisprogramfacilitatesandsupportsenvironmentallyfocusedcommunitygroupsaroundtheareasoffood,energy,wasteandtransport.Inadditiontocommunityfacilitation,Keeshasastrongsalesbackgroundinanumberofstartupcompaniesrangingfromsolarwaterheatingtointernationallogistics.

Andre Pinho(Signatory,Director&Chair)iscurrentlychairingRepoweringSouthLondonandhasbeenaLambethGreenCommunityChampionsince2009.HeholdsaMastersdegreeinaerospaceengineeringwithathesisinlargescalewindenergymodelling.HeisayoungcommitteememberofInstituteofMechanicalEngineers(IMechE)Energy,EnvironmentalandSustainabilityGroup(EESG).OverthelastfewyearsAndrehasaccumulatedexperienceinenergyefficiency,co-generationandsmallscalerenewables.HeworksinaninternationalESCOasprojectengineerfortheirenergysolutionsdivision.

Agamemnon Otero(Signatory,Director&ProjectManager)isaBoardmemberof RepoweringSouthLondon. ResidentinStockwell since2002,Agaisasustainability andsocialresponsibilityconsultant, entrepreneurandfineartartist,well knownintheareaasaco-founder oftheEdibleBusStopcommunity gardenprojectandaLambethGreenCommunityChampion.Hewason thedevelopmentteamforBetter WorldFinanceL.L.C.andworkedas theirdirectorofsocialresponsibility andprojectfinanceresearchfor renewableenergy.Healsoserved astheCFOforEnergyBankLtd,a startupinvestmentplatformfor fossilfuelfreeenergybondsand hasfacilitatedandcontributed tovariousrenewableenergy, sustainability,andarts&health conferences.AgahasanMasters degreeinArchitectureinAdvanced Environment&EnergyStudies.His thesisfocused onsocialresponsiblefinancingof renewableenergyprojects.

Will Anderson(Signatory&Director)isawriter,researcher,designerandself-builder.Heiswell-knowntoreadersoftheIndependentforhiscolumnDiaryofanEco-builderwhichdescribedtheconstructionofoneofBritain’sfirstenergyself-sufficienthomes(ontheBrixton-Claphamborder).WillhasaMastersdegreeinEnergyandSustainableDevelopmentandledtheenergyandenvironmentaldesignofthebuilding,whichcombinedexceptionalbuildingperformancewithsolarphotovoltaictechnology.From2009toearlyspring2011WillwasSeniorResearcherattheCentreforSustainableEnergywhereheledresearchintosmartmeters,energyfeedbacksystems,fuelpovertyandenergyimprovementsinhistoricandlistedbuildings.Hismostrecentbook,HomesforaChangingClimate,focusesondesigningbuildingstocopewiththeexpectedchangesintheclimateoverthe21stcentury.

Duncan LawisfoundingmemberandchairofTransitionTownBrixtonandhashelpedstartupmanyTTBprojectssuchastheBrixtonPound,BrixtonCommunityDraughtBusters,BrixtonRe-useCentreandBrixtonEnergy.Hespendshislifetryingtopioneerabetterlowenergyfuture.Hehasjustsuper-insulatedhisVictorianhouseandput4kWofsolarontheroof.HeisaqualifiedPermaculturedesignerandhasdoneenergyandclimatechangeeducationandconsultanciesformanyindividuals,schoolsandorganisations.Hecampaignsagainstbiofuelsasafalsesolution.

Christiane Schuetze

Afsheen Kabir RashidmanagestheBrixtonLowCarbonZone,oneoftenLowCarbonZonesacrossLondon.AfsheenhasseveralyearsexperienceinimplementingbehaviourchangeprogrammesacrossLondonengagingwithresidentsandbusinesses.AlongwithhavingastrongcommunityengagementbackgroundAfsheenhassuccessfullyruncommunitybasedsocialmarketingcampaignstofosterenvironmentalbehaviour.Asabehaviourchangeco-ordinatoratLondonSustainabilityExchange(LSx)Afsheenwasrecognisedforherworkonthe‘HinduismandH2O’projectwhenshereceivedanawardforsocialmarketingbestpracticeatthenationallaunchofShowCase2009.AfsheenwasinstrumentalinsettinguptheMuslimWomen’sCollectiveinTowerHamletsthatseekstoempowerwomentoplayanactiveroleinimprovingtheenvironment.AfsheenisanAssociatememberoftheInstituteofEnvironmentandAssessment(IEMA)andcurrentlyworksforLambethCouncil.

Rowena ParsonshasbeenaresidentofBrixtonsincethelateeighties.ShebecameawareofthePeakOilsituationthankstotheactivitiesofTransitionTownBrixtonandworkedasavolunteerintheCommunityShopinBrixtonVillage.RowenaisamemberoftheStMatthew’sTenantsandResidentsAssociationandishelpingtosetuptheircommunitygardeningproject.Herareaofprofessionalexpertiseisinformationmanagementandreporting.Inhercurrentpositionatasos.com,sheisinvolvedinthecarbonreductioneffortsoftheirSocialResponsibilitydepartment.

The TeaM13

At the Co-operative’s first annual general meeting, the current directors intend to stand down and offer themselves for re-election by the members. The Directors are not related to each other.

haslivedinBrixtonforthelasteightyears.AfteranearlycareerinacademictechnologytransferandintellectualpropertymanagementintheBiosciences,sheretrainedasaplumber,qualifiedasaheatingengineerandisnowinherfinalyearofaBEnginBuildingServicesEngineeringatnearbySouthBankUniversity.Chrisispassionateaboutincreasingaccesstorenewabletechnologiesandfoundedtechnologystart-upHelianthSystemsLtdin2009toadaptrenewabletechnologiestotheneedsofsmallhouseholds.

TerMs and CondITIons of share offer

05.Pleasereadthissectioncarefully–itsetsoutthedetailsforbecominganinvestorinBrixtonEnergySolar1.Membershipisopentoindividuals,corporatebodiesandvoluntaryorganisations.Whileyoumayhearaboutthisinvestmentopportunityfromothersources,youshouldmakeyourdecisionbasedsolelyontheinformationcontainedorreferencedinthisShareOffer.

sharehoLDings

risK factors

TheminimumshareholdingthatyoucanapplyforunderthisShareOfferis£250andthemaximumis£20,000(asprescribedbylaw).

EachshareinBrixtonEnergySolar 1hasanominalvalueof£1,which willnotincreasebutmaydecrease iftheCo-operativesufferssustained losses.Thesharesarewithdrawable butarenottransferable.SharesmaybewithdrawnonapplicationtotheBoardofDirectors,subjectto180days’notice;nowithdrawalswillbe

possiblewithinthefirstthreeyearsofinvestment.AllapplicationsforwithdrawalofsharesaresubjecttothetermssetoutintheCo-operative’sRules.Withdrawalswillbehonouredsolongas,inthesolediscretionoftheBoardofDirectors,theydonotjeopardisethefinancialstrengthoftheCo-operative.Forinstance,theBoardofDirectorshastherighttochangethenoticeperiodforwithdrawals,ortosuspendwithdrawals,butitdoesnotpresentlyintendtodosoexceptinexceptionalcircumstances.

Thedirectorsconsiderthatthisprojectislowerriskthanmanylong-terminvestmentsbecauseitisunderpinnedbytheFeed-intariffwhichisguaranteedbythegovernmentforthelifetimeoftheproject(25years).Nonethelessthereareinevitablyarangeofriskswhichyoumustconsider.TheDirectorshaveidentifiedthefollowingrisks:

•Thepriceofelectricitycangodownaswellasup.•Changesinlegislation,especiallytothevalueoftheFIT,couldaffecttheproject(thoughto-datechangesinFITvalueshaveonlyappliedtonewinstallations).•Theamountofelectricityproducedmaynotmeetthetarget,forexampleduetounexpectedweatherpatternsortheperformanceofthesolarpanels.•Theprojectmaybedelayedfortechnical,financialorlegalreasons.•Theremaybeinterruptionstoelectricitygenerationbecauseoffinancialorlegalmatters.

•Theremaybedamagetothesitethatinterruptsgenerationofelectricity.•Thecapitalcostsarebasedoncalculationscarriedoutbeforethisshareissue.Anysubsequentincreaseincapitalcostswillhavetobemetbymoniesraisedinthisshareofferandanyothersourcesoffunding(gifts,grantsandloans).•LegislativechangestotherolesandfunctionsoftheFinancialServicesAuthorityortothoseofotherregulatorybodiesmaychangethewayinwhichBrixtonEnergySolar1Co-operativeLimitedisregulated.•Althoughtheinstallationwillbefullyinsured,standardexclusionswillapplyincluding‘ActsofGod’.

Thislistisnotnecessarilycomprehensiveandyoushouldconsiderotherrisksthatmayimpactthevalueofyourinvestment.

voting interestEachmemberoftheCo-operativewillhaveonevoteregardlessofthesizeandvalueoftheirshareholding.ThesovereignbodyoftheCo-operativeisthegeneralmeeting,whichappointsaboardofdirectorstomanagetheCo-operative,andthebusinessofthegeneralmeetingandtheBoardofDirectorsisgovernedbysuchresolutionsasmaybeadoptedatageneralmeeting.

ProvisionismadeintheRulesforpaymentofinterestonthesharecapitalatsuchrateorratesasmaybedeterminedbytheCo-operativemembersateachannualgeneralmeeting.Thedirectorsintendtoawardamodestfinancialreturnonyourinvestmentinordertoprovideareasonableincentiveforinvestorstomaintaintheirsupport.Investorsshouldnotexpectinterestpaymentsthatmirrorthereturnsofcommercialinvestments.

14

terms anD conDitions for aPPLying for shares

your Promises to us

YoucannotwithdrawyourapplicationforsharesafterwereceiveyourApplicationForm.Wedonothavetoacceptyourapplicationforshares.Wemaydecidenottoissuesharestoyouorwemaydecidetoissuefewersharesthanyouapplyfor.Wedonothavetogiveanyreasonforourdecisions.

ThisShareOfferwillcloseon10March2012.YourapplicationforshareswillonlybeacceptedifwehavemettheconditionslaidoutinthisShareOffer.IfthisShareOfferisover-subscribed,shareswillbeofferedinprioritybyproximity(viapostcode)totheproject.

YourapplicationmustbeconsideredforapprovalatthenextBoardofDirectorsmeeting.Wewillacknowledgereceiptofyourchequeandapplication.Wemaycash

yourchequeassoonaswereceiveit.Wewillholdthatmoneyontrustuntilweissuesharestoyou.Wewillreturnyourmoneytoyou(withinfourteendaysoftheBoardofDirectorsmeetingatwhichweconsideryourapplication)ifwedecidenottoissuesharestoyou.Ifwedecidetoissuetoyoufewersharesthanyouapplyfor,wewillreturnthebalancetoyou(withinfourteendaysoftheBoardofDirectorsmeetingatwhichweconsideryourapplication).Wewillnotpayyouinterestonanymoneythatisreturnedtoyou.

YouwillbeboundbytheRules(asmaybeamendedfromtimetotime)ifweissuesharestoyou.

Youpromisethat:-Yourchequewillbehonouredonpresentation;-You,asanindividual,areatleast16yearsofage;-Youwillsupplyuswithproofofyouridentityandaddressifweaskforit(wemayneedthistocomplywithMoneyLaunderingRegulations2003);and-YouareaUKresidentand/oraBritishcitizen.

a share application form is included with this document. it can also be downloaded from www.brixtonenergy.co.uk

nomination oPtion

warning anD DiscLaimer

Intheeventofthedeathofashareholder,therepaidvalueoftheshareswillnormallybeaddedtotheestateforprobatepurposes.Youmay(ifyouwish)electtonominatearecipientforthevalueoftheshares(butonlyupto£5,000)andthus(undercurrentlegislation)removethevalueoftheshares(upto£5,000)fromyourestateforprobatepurposes(butnotforcapitaltaxpurposes).Ifyouhaveanyquestions,youshouldseekindependentadvice.

Youmaylosethevalueofyourinvestment.ThisShareOfferisexemptfromtheFinancialServicesandMarketsAct2000orsubsidiaryregulations.Thismeansthatyouhavenorightofcomplainttoanombudsman.Aco-operativeformedundertheIndustrialandProvidentSocietiesAct1965isregisteredwithbutnotauthorisedbytheFinancialServicesAuthorityandthereforeanymoneyyouinvestisnotsafeguardedbyadepositorprotectionschemeordisputeresolutionscheme.

IntheeventBrixtonEnergySolar1getsintofinancialdifficulties:-Wemayhavetosuspendyourrightstowithdrawyourshares;-Wemayhavetowritedownthevalueofyourshares;-Youmayloseallthemoneyyouhavepaidforyourshares.

Can you afford to be without the money you pay for these shares? If not, you should not buy them. If you are in doubt about any information contained in this document, you should consult an Independent Financial Advisor under the Financial Services Act 1986, or you should seek advice from a solicitor or accountant.

15

ApplicAnt:anapplicantforOfferSharesthroughsubmissionofanApplicationForm

ApplicAtion Form:theforminthisShareOfferwhichmustbecompletedandreturnedinaccordancewiththeTermsandConditionsofthisShareOfferandtheGuidanceNotes

ApplicAtion monies:thetotalgrosssumrealisedbythisShareOffer

BoArd:theBoardofDirectorsofBrixtonEnergySolar1

repowering south london:acommunityorganizationwhichexiststopromoteandrealizecommunity-ownedrenewableenergyinstallationsinandaroundBrixtonandsouthLondon

Brixton energy solAr 1 (or the co-operAtive):BrixtonEnergySolar1Co-operativeLimitedwhichisregisteredwiththeFinancialServicesAuthority(RegisteredNo.31433).

climAte chAnge:thephrasewidelyusedtodescribechangingweatherpatternsasadirectresultofglobalwarming

commissioned:PanelsregisteredforFeedinTariffandsysteminactiveservice

co2:Carbondioxide,anaturalgasemittedduringtheburningoffossilfuelsandregardedasthemaincauseofglobalwarming

directors:theDirectorsofBrixtonEnergySolar1

AnnuAl interest pAyment:inaCo-operativeSociety,adiscretionaryallocationofprofitpaidtomembers,basedonthemembers’transactionswiththeco-operativeandnotontheamountofcapitalinvested

eis:EnterpriseInvestmentScheme,ataxreliefmechanismforeligibleshareholders

Fit:Feed-inTariff,anincentiveformicrogenerationupto5MWintroducedbyHMGovernmenton1stApril2010underpowersfromtheEnergyAct2008

kw:kilowatt,aunitthatmeasurespowerandisequalto1000Watts

kwp:kilowattpeak,aunitthatmeasuresmaximumpowergeneratedbytheinstallationorasinglepanel

kwh:kilowatthour,aunitthatmeasuresenergyandisequaltotheenergythatcanprovidethepowerof1kWfortheperiodofonehour

gLossary06.16

loughBorough centre:alargehallat105AngellRoadtorunactivitiesandeventsforthecommunity

loughBorough emB:theestatemanagementboardfortheLoughboroughEstate,throughwhichcounciltenants,leaseholdersandfreeholdersarecollectivelyresponsibleformanagingtheirhomes

loughBorough estAte:isacomplexofhighandlowrisebuildingslocatedinSouthWestLondonownedbyLambethCouncilandmanagedbyURH

shAre oFFer:TheOfferofSharesinBrixtonEnergySolar1containedinthisdocument

oFFer costs:TheexpensesincurredbyoronbehalfofBrixtonEnergySolar1inissuingthisShareOffer

oFFer period:TheperiodduringwhichtheinvitationtopurchasesharespursuanttothisShareOfferwillremainopen(includinganyextension)assetoutinthetimetableinthisdocument

oFFer shAres: NewwithdrawablesharesinBrixtonEnergySolar1,offeredataparvalueofonepound(£1.00)eachpursuanttotheTermsandConditionsoftheShareOfferand payableinfullonapplication

photovoltAic pAnels: Panelswhichareabletoconvertsunlightintousefulelectricalenergyfordistributionintotheelectricitynetwork

ppA: PowerPurchaseAgreementforthesaleofelectricity

project: theproposedownershipandoperationbyBrixtonEnergySolar1ofa50kWphotovoltaicarrayattheLoughboroughEstate,LondonSW9

projections:thefinancialprojectionsforBrixtonEnergySolar1setoutinthisShareOffer.

rules:theRulesofBrixtonEnergySolar1,availableondemandbyusingthecontactdetailssetoutinthisShareOffer

site:thelocationoftheproposedsolararray

solAr ArrAy:collectionofphotovoltaicpanelsconnectedinseriestogenerateelectricity

urh:UnitedResidentsHousing,themanagementorganisationforfourresident-managedestatesintheLondonBoroughofLambeth,includingtheLoughboroughEstate

17

To apply for this Share Offer, fill in the online Application Form under the ‘Shares’ tab of the Brixton Energy website:

www.brixtonenergy.co.uk/shareoffer

18

how To aPPLy07.

soLar 1

www.brixtonenergy.co.uk