Energy
Trillion Fund wind crowdfunding opportunity offers investors 7.5% return
Investors could achieve a 7.5% return on their investment whilst supporting renewable energy in a new crowdfunding opportunity. Trillion Fund will launch on Thursday the first offing on its new platform, which allows investors to support projects in just a few minutes.
E2Energy, a joint venture between wind turbine manufacturer Endurance and turbine supplier and installer Earthmill, will launch the first £1.25m tranche of a total £5m to finance the construction and installation of new wind turbines across the UK.
Individuals can invest as little as £50 and the loan-based crowdfund expects to pay a return of 7.25% over three years. Lenders that sign up within the first 30 days will also receive bonus interest of 0.25%
The proceeds raised will be used to install new turbines on sites that have already received planning permission in Yorkshire, the north-west, the north-east, south Wales and Scotland. Typically, wind projects have the greatest risk during the planning process; once they are up and running, the risk involved is significantly reduced.
Investments are also backed by five, fully operational wind turbines located in Yorkshire and South Teeside, which are already generating revenue and covered by insurance for 20 years.
Julia Groves, managing director of Trillion Fund, said, “Wind profits do not have to be just for wealthy landowners – they can go to everyone. And we are all ultimately paying for feed-in tariffs, so we might as well be making a return on them too.
“Renewable energy projects offer unique, asset-backed returns, because they generate a steady, relatively predictable income flow from the feed-in tariff they receive and the electricity they send to the grid. There is also some inflation-proofing as the tariff rises in line with the Retail Price Index.”
As well as receiving a financial return, investors will know that their money is helping the UK move towards a low-carbon economy and benefitting the environment. Some of the electricity generated will go directly to local farmers, with the rest being bought by power utilities.
Communities are increasingly interested in becoming involved in local projects, by investing in them and having their say. As well as providing a return to locals, it can benefit companies because they are more engaged with the communities affected.
Dave Rankin, managing director of Endurance UK, noted, “They say that when local people own the wind farms and share in the benefits, they support them. You go from nimby (“not in my back yard”) to pool (“please on our land”).”
Photo: ColinBroug via Freeimages
Further reading:
Seven steps: essential tips for successful crowdfunding
Wind farms an ‘attractive long-term’ investment opportunity
Good Energy offers wind investment opportunity in Cornwall
£310m Hull offshore wind plant given go-ahead as Siemens confirms investment
Wind share offer raises £100,000 investment in less than 24 years