Abundance Investment launches the first tax-free wind project in the U.K.


Abundance Investment has just launched the first wind-energy investment in the U.K. 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 percent – 8.5 percent 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 company said.

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,” Davis added.

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.

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 percent average annual IRR over lifetime, £250k remaining.
  • Monnow Valley CHP biomass – 1 year debenture with 12 percent IRR, now fully subscribed.
  • Thrive Renewables – 7-year bond with 5 percent fixed interest rate, now fully subscribed for ISA.

Abundance Investment has successfully raised over £35m for 22 different projects in the past four years. Abundance Investment is authorized and regulated by the Financial Conduct Authority.

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