- The Collective gives the option to own a piece of a green energy project
- It’s the first of its kind to be approved by the FDA
- One in three want to invest in green power
Octopus Energy has launched the Collective, a new investment platform to help UK customers to own a part of a green energy project and take advantage of what it calls one of the “biggest investment opportunities of this generation”.
The first-of-its-kind platform allows people to directly buy a share of a renewables project, like a wind farm or solar farm.
Those who wish to invest will need to make a minimum payment of £25 and any returns go straight into their pockets, as there are no fees and it is free to join.
Octopus Energy claims it is the first energy company in the UK with a retail investment platform that is regulated by the Financial Conduct Authority (FCA).
The platform’s launch comes as a recent YouGov survey revealed 33% of British people want to invest in green power.
Zoisa North-Bond, CEO of Octopus energy collective, said the platform has launched with two wind turbines in Yorkshire and Wales, with plans for several more renewables projects across the country. The turbines are part of Octopus’ ‘Fan Club’ scheme where nearby customers receive discounted electricity when it’s windy.
“With a new generation of investors in mind, these turbines offer an annual target return of up to 6% with an investment term of three years,” North-Bond explained.
She added in order to provide additional benefit for those taking part in these first projects on the Collective, Octopus is underwriting initial investments made in these turbines.
Collective members who invest £1,000 would own approximately 0.05% of a turbine – and could get a 6% annual return with any dividends paid each quarter, totalling £180 over three years.
Members will also be able to monitor any returns, as well as the clean energy generated from the project in their account, and Octopus Energy customers also have the option of linking potential dividends to their energy accounts to lower their bills.
At the end of the three years, the project aims to buy back the shares at the original price paid – and Collective members can withdraw this or reinvest it in other clean energy projects on the platform.
According to North-Bond, renewable energy represents “one of the biggest investment opportunities of our generation” and one in which people can play “a powerful role”.
“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,” she said.
“We’re at the start of a people-powered renewables revolution – and the Collective platform is bringing green energy ownership to the many, not a few.
“It’s time for more people to have the chance to take a stake in their clean energy future.”
People who are interested in finding out more can visit the Collective website. As required by regulation, potential members will be verified to ensure this is suitable for them.
Before becoming a member, users will need to complete a multi-choice quiz to understand the type of investor they are, which is to help ensure the risks of investing are understood.
