Renewable energy investment platform Abundance Generation has launched its first fixed rate return project – the sixth since the firm launched over a year ago.
The new development, SunShare Community Nottingham, will see rooftop solar panels installed on schools, nurseries and libraries in Nottingham. The project is open to individuals wanting to invest as little as £5, with Abundance looking for around £900,000 to fuel the carbon-free project.
Investors will see 6.65% returns on their investment, which is paid back annually over the 19-year lifespan of the project. Abundance claims that an investor who commits £950 to the project would see annual payments of £90.39 for 19 straight years, consisting of £50 capital, £38.50 profit and a £1.43 “pioneer bonus”.
The buildings involved are set to benefit from low-cost, clean energy, which is significantly cheaper than paying current electricity prices. Last week, consumer group MoneySupermarket.com warned of “imminent” price hikes within the energy sector, calling on householders to switch to cheaper tariffs.
In addition, Abundance says that its prices will increase in line with inflation, whereas the Department for Energy and Climate Change (DECC) predicts that energy prices are set to soar ahead of rates of inflation.
Bruce Davies, joint managing director of Abundance, said, “We know from the rapid take up of the previous five projects that savers and investors are desperate for inflation beating returns and would much rather get them through investing in the real economy in assets that they can see, trust and believe in.”
Abundance’s last project connected investors with clean energy projects, highlighting the “growing potential” of democratic finance and raising £700,000 in just 35 days.