Octopus Energy launches renewable investment platform in UK
Image: Octopus Energy
Octopus Energy has launched ‘the Collective’ to enable consumers to invest in and gain returns from renewable energy projects.
Citing a recent YouGov survey finding that one in three people would want to invest in green energy, Octopus Energy is offering ‘the Collective’ as its response to meet this demand.
The first of its kind platform in the UK, and regulated by the Financial Conduct Authority, the financial regulator, opens the way for individuals to buy a share in green energy projects with a minimum investment of £25 ($31).
Initially the offer is open to two wind turbines in Yorkshire and Wales, with plans for several more renewables projects across the country.
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These turbines are also part of the Octopus’ ‘Fan Club’ scheme through which local customers receive an automatic discount at the times their wind facility is spinning and generating electricity.
“Moving to renewable energy represents one of the biggest investment opportunities of our generation – and people can play a powerful role in driving it,” says Zoisa North-Bond, CEO of Octopus Energy Collective.
“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 scheme is free to join and without any fees so that any returns go to the investors, where they are subject to those individuals’ tax circumstances.
As an opening offer for this new investment type potentially attracting new investors, Octopus Energy is aiming these first two wind turbines, which the company has owned since 2021, to provide a 6% annual return over a three year investment term.
This target return has been calculated by factoring in historical data on the wind turbines’ financial and operational performance.
To ensure the return, Octopus Energy is committing funds to underwrite the initial investments made.
Collective members who invest £1,000 would own approximately 0.05% of a turbine and with a 6% annual return with quarterly dividends, could receive £180 over the three years.
The returns, as well as the clean energy generated from the project, will be able to be monitored by members in their Collective account.
Octopus Energy customers also have the option of linking potential dividends to their energy accounts to reduce their bills.
At the end of the three years, the project aims to buy back the shares at the original price paid, with the Collective investors able to withdraw this or reinvest it in other clean energy projects on the platform.
