Octopus Energy has announced a new scheme to make "sustainable investing simple and accessible" through something called the Collective. The investment platform allows customers to buy a share of green energy projects listed, the energy company said. There are currently two wind turbines in Yorkshire and Wales on offer, with plans for more renewable projects to be added across the country, according to the Express. These are part of the energy supplier’s Fan Club scheme that offers nearby customers discounted electricity when there are strong winds.
Based on historical figures, the turbines are expected to generate up to 6% return over a three-year investment. People investing £1,000 would then get returns of £180 over the three years, plus quarterly dividends. For Octopus customers, the dividends can also be linked to their energy bills to keep more cash in their pockets. After the three years, the project aims to buy back shares at the original price, allowing members to withdraw or reinvest in other clean energy projects on the platform.
Zoisa North-Bond, CEO of Octopus Energy Collective, said: “Moving to renewable energy represents one of the biggest investment opportunities of our generation – and people can play a powerful role in driving it. We know our customers and lots of people want to do more than use green energy, they want to own a piece of it and turbocharge the shift to a cheaper energy system. “We’re at the start of a people-powered renewables revolution – and ‘the Collective’ platform is bringing green energy ownership to the many, not the few. It’s time for more people to have the chance to take a stake in their clean energy future.”.
The platform follows a recent YouGov survey which found one in three Brits are keen on investing in green power. With a minimum investment of £25, the platform, which is regulated by the Financial Conduct Authority (FCA), ensures that all returns go directly to investors, with "no fees" involved. However, there are some caveats to the deal. Investors can track their returns and the clean energy generated by their investment through their Collective account. But, it’s an illiquid investment, meaning a person won’t be able to touch any money they’ve invested into a project on the Collective until the investment term ends.
The Collective’s risk warning notes: “It’s important that you’re comfortable holding your investment for the full term. If you’re unsure you should speak with a financial advisor or qualified professional for advice.”. Past performance also doesn’t guarantee what the projects will return in the future, so dividends and returns like the 6% rate can be higher or lower than expected. Additionally, as with any investment, capital is at risk. Because of this, experts usually advise people not to invest more than they can afford to lose.
