Savvy investors in Stratford and Warwickshire set to benefit from local energy project that aims to give back to the community, as well as their wallets
Waiting list launched for Warwickshire residents to guarantee their chance to invest in Â£1,000,000 fundraiseTarget of Â£2.7m of profits to be invested into local community projects over 25 years
15th March 2018, Stratford-upon-Avon: Savvy investors are today being encouraged to get in line to invest in the UKâ€™s largest community-owned renewable energy project, established by Heart of England Community Energy and based just outside of Stratford-upon-Avon. The solar farm, comprising 60,000 solar panels and generating enough electricity to power 4,500 houses, has today opened a waiting list for those who want to guarantee themselves an opportunity to invest. The Â£1,000,000 bond offer launches on 28th March and plans to share Â£2,700,000 of its potential profits with local good causes.
The bond, set up by Warwickshire locals and managed by Mongoose Energy – the UKâ€™s largest manager of community-owned renewable energy assets â€“ is a smart investment option, delivering projected interest rates of 5% over four years as well as an additional 1% of interest for those who sign-up and invest before the first half of the target funds are raised. (Please note that capital is at risk and returns are not guaranteed.) As the offer also includes an Innovative Finance ISA option, investors still needing to use their ISA allowance can take advantage of it, or alternatively transfer their existing cash ISAs at any time.
The bond provides the added bonus of giving investors peace of mind that their money is being used entirely to deliver positive change in their community. All the funds raised will be used to finance the solar farm, whilst all surplus profit will fund community projects. This will include sharing an intended minimum of Â£30,000 per year over 25 years with causes that help to improve the health of elderly and vulnerable people living in cold and damp homes, enabling them to reduce their energy bills and improving heating and insulation.
The launch coincides with a surge in popularity of investing to â€˜do goodâ€™, not just do well. Research from Mongoose Energy shows that two thirds (60%) of consumers today would prefer their investment to make a positive impact on others, with 65% of those from the Warwickshire area supporting this view. Investing in renewable energy and ethical investments in particular are two of the preferred options for achieving this impact, with more than a quarter (27%) of people in the Warwickshire area considering this over the next year.
Tony Guy, Heart of England Community Energy board member, commented: â€œDoing good whilst doing well is something close to the hearts of many in the Warwickshire region. This bond launch gives residents a really exciting opportunity to invest in a financially savvy option that will have a huge impact locally, helping support the elderly and vulnerable who struggle to afford sufficiently heated homes.â€
Mark Kenber, CEO of Mongoose Energy, commented: â€œWith the end of the financial year looming, many people are still unsure of how to best invest their money. Heart of England Community Energy provides those looking to move their money with an opportunity to earn competitive interest rates, whilst knowing exactly how their investment is being used and delivering a tangible, positive impact on the communities in which they live.â€
Those wanting to join the waiting list, or wishing to find out further information on opportunities for investing in community-owned renewable energy, should click here before 28th March.
Please note that investing in the projects promoted by Mongoose Energy puts your capital at risk and returns are not guaranteed. Please read the full risk warning on https://www.mongoosecrowd.co.uk/risk before deciding to invest.
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About Mongoose Energy
Mongoose Energy (www.mongoose.energy) works with community groups, project developers and investors to develop, finance and manage community-owned renewable energy installations. The organisation is majority-owned by the community energy groups it works with, and profits go back to the local communities that developments are located in.
Mongoose projects are funded through the crowdfunding platform Mongoose Crowd (www.mongoosecrowd.co.uk), where investors can see a range of offers for community-owned renewable energy developments across the UK.
About Heart of England Community Energy
- 75 acres â€“ equivalent to 50 football pitches
- 60,000 solar panels â€“ thatâ€™s two for every person who lives in Stratford-upon-Avon
- 7MW output â€“ capable of powering 4,500 homes
- 25% – solar power can now provide a quarter of the UKâ€™s electricity demand
Summary of bond offer
- Issuer: Heart of England Community Energy
- Membersâ€™ interest: 5% paid annually (returns are not guaranteed)
- Incentive: Additional 1% interest on first yearâ€™s return for those investing before offer reaches 50% of target
- Funding target: Â£1,000,000
- Offer opens: 28th March, 2018
- Offer closes: 30th April, 2018
- Term: Four years
- Minimum investment: Â£500
- Maximum investment: Â£100,000
- Target profits shared with local causes: Â£2.7m over 25 year period (target of minimum of Â£30,000 paid per year)
What is the Innovative Finance ISA?
The UK Government introduced the Innovative Finance ISA on 6th April 2016, to recognise the growing role that Peer-to-Peer lending is having in bringing investors and borrowers together outside of the mainstream baking sector. The â€˜IFISAâ€™ allows individuals to use some (or all) of their annual ISA investment allowance to lend funds through the growing Peer-to-Peer lending market, whilst receiving tax-free interest and capital gains.
The rates offered by Innovative Finance ISA providers are typically around double the rates offered by Cash ISA providers. This is possible for a number of reasons, with the main reason being that Peer-to-Peer lending cuts out the â€˜middlemanâ€™ bank, allowing borrowers to pay less in interest but also allowing investors to receive more.
Mongoose Crowd offers eligible members the choice of opening an IFISA from within their account.