First wind energy ISA investment launched

The offering from Abundance Investment is to refinance the Upper Pitforthie Windgen 500KW turbine in Aberdeenshire. The project needs a total of £2.3 million investment.

The average annual return rate of the Individual Savings Account (ISA) offer is estimated to be 7.3 per cent to 8.5 per cent over the 17-year investment lifespan.

The money raised will repay short-term Debenture holders who funded the construction of the project in November 2015 and allow investors to earn a return from the energy generated.

Abundance founder and managing director Bruce Davis 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.”

The project was commissioned in August 2016 and therefore pre-accredited for the Feed-in-Tariff (FiT) subsidy at the level before the recent cuts.  

Abundance has raised over £35 million in the past four years as over 1,200 people opened ISA accounts with the firm. Over £5 million of that amount has been invested through the ISA since November this year to fund UK renewable energy projects. Other new ISA-eligible projects listed on Abundance include Swindon Chapel Farm solar and Monnow Valley CHP biomass.