Crowdfunders offered 7.25% annual return in new wind power venture

19th June 2014

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Intrepid crowdfunders are being offered the opportunity to earn an annual 7.25% return for as little as a £50 stake in a new venture in the renewable energy sector.

E2Energy, a joint venture between Endurance, a community-scale wind turbine manufacturer and Earthmill, a wind turbine supplier, will launch the first £1.25m tranche of a total planned £5m raise to finance the construction and installation of new wind turbines.

The loan offers anyone with as little as £50 a return of 7.25% a year over three years, via the Trillion Fund crowdfunding platform, which funds ventures by raising many small amounts of money from a large number of people.

Early birds who sign up within the first 30 days will receive bonus interest of 0.25 %, boosting their return to 7.5%, where for example, a lender putting in £1,000 before July 31 will get back £1,225 at the end of three years.

The money raised will go to installing more turbines and generating more clean, cost efficient energy to parts of the UK that need it.

The cash will be backed by five, fully operational wind turbines located in Yorkshire and South Teesside, which are covered by insurance for 20 years. Proceeds from the raise will be used to install new Endurance turbines on sites that have already received planning permission in Yorkshire, the North West, the North East, south Wales and Scotland.

Some of the electricity generated by the turbines goes directly to local farmers, helping to support the UK agricultural industry – the rest is bought by power utilities.

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 from 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.”

Dave Rankin, managing director of Endurance UK, added: “Endurance has a strong community focus and we wanted to give everyone the chance to have a stake in the growth of UK wind – not just the private equity players, banks and high net worth individuals that have so far funded much of the sector.”

Potential lenders must bear in mind that as stated on Trillion Fund’s website, capital is at risk and this is a long-term loan and it may not be possible to withdraw your capital before the end of the term and as with any kind of investing or lending, there are risks associated with putting your money into renewable energy projects.

2 thoughts on “Crowdfunders offered 7.25% annual return in new wind power venture”

  1. dlp6666 says:

    Looks like the interest is paid gross, though presumably not eligible for ISA/SIPP

  2. Interesting to see what comes of this.

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