Bond scheme for renewable energy

07/11/11

By Emma McFarnon

Investors looking to back renewable energy projects will be pleased to learn of a £10 million bond scheme which allows them to invest hassle-free.

The scheme allows investors to bypass the banks and invest in green energy "without needing to stick anything on their roofs", says Ecotricity, the company behind the launch.

The green energy company is launching "ecobond-two", to fund investment in renewable projects to build 19 new wind turbines for which is has planning permission.

The company said the annual returns on its four-year bonds - which are subject to a minimum £500 investment - would be 6 per cent, or 6.5 per cent for Ecotricity customers.

The Government's recent decision to slash the subsidies paid to people for electricity from small scale renewables, such as solar panels, may have put off would-be investors. Ecotricity believes the scheme will appeal to these individuals.

A similar programme launched by the same company last year was over-subscribed by 50 per cent. It helped fund a solar park and turbines at two factories. Ecotricity hopes "ecobond-two" will follow last year's success.