Abundance Investment has just launched the first wind-energy investment which is eligible to be held tax-free in an ISA (Individual Savings Account). The scheme is to refinance the Upper Pitforthie Windgen 500 kW wind turbine in Aberdeenshire which was commissioned in August 2016 and is therefore pre-accredited for the Feed-in Tariff subsidy level prior to the recent cuts. With the subsequent reduction in FIT for onshore wind this will be the last opportunity to invest in wind on Abundance in the near term.
On offer is a Variable Return Debenture with an effective average annual rate of return estimated at 7.3% – 8.5% over the 17-year investment life, with a minimum investment of just £5. The total amount available for investment is £2.3 million.
This is the second phase of the Upper Pitforthie Windgen project, following the funding of its construction by Abundance members in November 2015. The money raised will repay those Short Term Debenture holders who funded the construction and allow investors to enjoy the returns from the energy generated with the risk of construction removed. People who invested in the first debenture will be able to ‘flip’ their investment directly into the new debenture.
Bruce Davis, founder and managing director, Abundance, said: “This is one of the last chances to invest in an onshore wind project whose returns are underpinned by a Feed-in-Tariff rate no longer available to new projects and without any construction risk. Investors will have the opportunity to effectively double their money if they hold the debenture for its full 17-year term.
“Abundance members can now have a fully diversified renewable energy ISA portfolio which is considered good practice in investment – with projects in wind, solar and biomass and over a variety of time frames – and enjoy tax-free returns.”
This is the fourth ISA-eligible new renewable energy investment to be listed on Abundance since it launched the UK’s first Green Energy ISA in November. Other ISA investable technologies listed on the site have included solar and biomass giving renewable energy supporters the ability to have a fully diversified portfolio both in technology and term of the investment.
Over 1,200 people have now opened ISA accounts with Abundance and over £5 million has been invested through the ISA since November to fund UK renewable energy projects.
Bruce added: “The extraordinary success of our ISA so far shows what a difference it can make to the real economy in the UK. We’re making it easy for ordinary people to invest tax-free directly in the UK’s green energy infrastructure into projects that are tangible, straightforward and easy to understand. It’s a win for everyone.”
Other new ISA-eligible products listed on Abundance are:
·Swindon Chapel Farm solar – 20-year debenture with 6% average annual IRR over lifetime, £365k remaining.
·Monnow Valley CHP biomass – 1 year debenture with 12% IRR, now fully subscribed.
·Thrive Renewables – 7-year bond with 5% fixed interest rate, now fully subscribed for ISA.
For more information, please visit: www.abundanceinvestment.com