Media reports relating to launch of crowd funding

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Abundance Generation, the UK’s leading crowdfunding platform, has today delivered an investment boost for solar power in UK schools, with the launch of another 'Green Dividend'. 

The Engynious solar schools project, which has already installed 800kW of solar on 19 schools with plans for more, pays investors a 7% fixed rate of return and a 30% discount on electricity costs for schools, freeing up money to be used for educational purposes.

This comes on the back of the UN Intergovernmental Panel on Climate Change (IPCC) report emphasising not only the urgent need to deploy renewable energy, but the positive investment opportunity the technology brings. 

Earlier this month Energy Minister Greg Barker outlined plans for the rollout of solar power across government owned buildings, particularly primary and secondary schools - following the demonstrable financial and educational benefits witnessed in over 250 British schools with the Solar4Schools programme.

This latest project means people with as little as £5 to invest can enjoy an effective rate of return fixed at 6.7%, (7% with Early Bird bonus) paid twice yearly over the 19 year term. Holdings can be sold earlier, at no additional cost, to other people via a facility on the Abundance website. The schools participating in the scheme do not pay anything for the panels or their ongoing operation, but still benefit from electricity at 30% or more below standard rates. As and when electricity prices rise in the future, the amount the schools save will increase. 

Engynious Schools has been set up to own and manage solar PV systems installed on schools across England. To date, 21 systems have been installed and are already generating electricity for 19 schools with more planned for the future. Engynious Schools earns revenues from the Government's Feed-in Tariff scheme and from selling electricity to the schools well below the price they would normally pay.

The Engynious Schools project is looking to raise at least £300,000 and up to £1m which will be used in the wider Engynious group to develop and install more PV systems, particularly in schools. Engynious has identified other potential schools and will continue to engage more that are interested.

The management team has long experience of solar PV having met when working for a German panel manufacturer in 2008. To date, they have installed 3.5MW for various commercial, agricultural and public projects principally here in the UK and in Germany.

In addition to the significant cost savings, and the opportunity to spend that money instead on educational resources, the schools will each benefit from a valuable practical demonstration of alternative energy to educate and inspire their students.

Bruce Davis, co-founder and joint MD of Abundance said, "This latest project we are offering to investors with as little as £5 to spare is a perfect example of a genuine 'Green Dividend' and right where it is needed. Even the smallest investor can enjoy very attractive, inflation beating returns at low risk, the schools enjoy electricity at much lower rates freeing up money for educational purposes, and the firm running the scheme will be able to expand its operations further, increasing the UK’s renewable energy capacity". 

"This latest offer is another example of how – contrary to what many think – it is possible to invest in tangible, ethical assets that do good and enjoy returns far greater than those paid from mainstream products offered by banks and other traditional providers. Abundance projects provide the hard evidence that a win-win situation is perfectly possible."

"After raising more than £1 million over the last month, this further £1 million on offer on the solar schools Engynious project will give our investors more choice and the chance to diversify further. Of our eight projects to date, three are still open for investment, but are going fast, as our typical customer invests in at least three projects and 10% of them have invested in all eight."

Cheryl Chatburn, Head Teacher at Rice Lane Infant and Nursery School said, "We have a large flat roof that seemed prefect for solar PV and Liverpool local authority have supported us. With Engynious we got there and the children are really excited to have them. The children will be writing to the parents to let them know just what we are doing to help look after the world in which we live." 

"For us the teaching and learning that the solar PV system brings is our first consideration. But there are financial savings too which will come in very handy. The system has cost the school nothing and we will only pay for the electricity we use at a subsidised rate, which will always be lower than the energy companies charge, so it is wonderful to be part of this particular programme."

As with all Abundance projects, investment is facilitated by investors buying debentures in the project, which are a form of IOU from the PLC committing it to make half yearly cash payments of capital and a share of the profits made through the generation of renewable energy. Debentures are a regulated product that has existed for hundreds of years, predating even equities in the stock market. 

Once purchased, these debentures will run for the duration of the project which in this case is 19 years, although investors can sell them to others via the Abundance website at any time. Abundance makes no charge for these transactions. 

Written by ClickGreen staff