The UK’s first green energy ISA has officially been launched.
Abundance Investment’s Innovative Finance ISA (IFISA) will allow ordinary people to invest their money directly in renewable energy projects across the country.
This first project offered as part of the ISA is a 5MW solar farm in Swindon, owned by Swindon Borough Council.
It will cost £5.4 million, with £3 million coming from the council and the remaining £2.4million from Abundance investors. It is planned to start generating energy by spring next year.
The council’s ownership and involvement is attractive to investors as it can provide a particularly secure support structure for the project.
Bruce Davis, Joint Managing Director of Abundance, said: “Investors’ money will be working harder than it would in the bank, boosting the UK’s green economy and sustainable infrastructure and returns will be tax-free. It’s just the start, we’ve got other exciting ISA investments on the way which can help ordinary people match their financial aspirations with their environmental values.”
The bond will have an average annual rate of return of 6%, with the 20-year term being paid in twice yearly instalments. A minimum investment of only £5 means anyone can get involved.