Renewable energy crowdfunding platform Abundance Generation has successfully reached its £500,000 target to fund the installation of solar panels on 20 community buildings in Nottingham.
The project, named SunShare Community Nottingham plc, will power schools, leisure centres and a library in the city with clean energy from the sun.
The initiative managed to raise the £500,000 required in just under a month, thanks to 337 people who invested in the project. Investors could pledge as little as £5.
Bruce Davis, co-founder and joint managing director of Abundance Generation, said, “The success of SunShare Nottingham is a real vote of confidence both in the sector and in the idea of diversifying investment away from conventional stocks and shares.
“This is the sixth renewable energy investment project we’ve opened up and we know from the rapid take up that investors are actively looking for inflation beating returns. People would much rather get them through investing in the real economy in assets that they can see, trust and believe in.”
Investors gain debentures – contracts that represent loans, in a similar way to IOUs – that pay a fix return of 6.65% internal rate of return (IRR) over its 19-year life, through payment instalments.
Nottingham resident Bryan Norris, who invested in the project, said, “I invested £200 in SunShare because, simply, it’s too risky to invest in dirty, rapidly depleting fossil fuels these days. Renewable energy is much more secure, sees better returns and it’s right on the doorstep helping the local community.
“At over 6.6% IRR it makes more sense than other investments where quite frankly I’ve no idea where my money is going. Within 19 years I expect to get £360 back, so I’d urge others to snap up the last remaining debentures whilst they can.”