|Founded||2009 Abundance NRG Ltd|
Karl Harder (Director)|
Louise Wilson (Director)
Bruce Davis (Director)
Abundance Generation is a regulated online platform that lets people lend money from as little as £5 to renewable energy projects in the UK and share in the returns from generating low-carbon electricity. When investors buy a Debenture through Abundance, they are lending money to an Energy Project and in return they have the right to a percentage of the revenue or profit generated from the sale of the electricity produced by the project. Abundance Generation is open to all UK residents over 18 and is authorised and regulated by the Financial Conduct Authority. Currently, Abundance focuses on a range of renewable energy projects but is looking to offer other ethical and social beneficial investments in the future.
Risks of investing in renewable energy
All investment carries risk, and Abundance, as a regulated crowdfunding platform, is required to clearly set out these risks for all potential investors. For renewable energy projects, something could go wrong and an investor may not get back all or any of their original investment. Abundance Debentures are also long-term investments which investors should expect to hold for the full 20 years. Although Abundance facilitates a process for Debentures to be bought and sold before the end of their life, there is no guarantee that this can be done, or what the value will be. Finally, rates of return are estimated and not guaranteed. Offer Documents set out risks related to specific projects and should be read thoroughly before an investment is made.
History and aims
Abundance is based in the UK and launched to the public in April 2012. The company was set up in 2009 and went through a two year process to become the first community finance platform / crowdfunding platform to be authorised and regulated by the Financial Services Authority (now the Financial Conduct Authority).
Abundance aims to support renewable energy projects give "people control over where their money is invested and how it generates a return. Renewable energy is the starting point, but we believe that democratic finance could be a more sustainable source of finance for other forms of public infrastructure investment such as schools, hospitals and social impact initiatives" (Karl Harder, Abundance Director). Allowing the local community to invest in renewable projects can greatly increase the support for renewables and give the community greater ownership of the projects.
As of 3 April 2014, Abundance has raised £5.3 million from the public for seven renewable energy projects, including a 500 kW turbine in Gloucestershire, a residential solar project in the South Downs and free solar power for various schools across the UK.
Abundance is like a building society for low carbon technology, offering a lower-risk crowd funding opportunity. Investors put money towards specific renewable energy projects and receive a return based on the green electricity generated.
There are currently two projects open for investment on Abundance. Abundance's first project, a 500 kW community wind turbine in Cornwall, offers an estimated return across the 20 year life of the project of 8.4 - 9.3%. Abundance's second project, consists of two 249kW solar PV arrays, offering estimated returns of 7.35% across the 20 year life of the project.
Abundance operates through its online platform, with individuals able to deposit money online and then invest in specific renewable energy projects around the UK.
The Abundance website lets investors view how much electricity their projects are generating, depending on how windy or sunny it is. Abundance has recently launched the ability to give investments in renewable energy as a gift and Abundance Debentures can also be held in a Self-invested personal pension (SIPP).
- Guardian (20 April 2012). "Invest in green energy for just £5". The Guardian (London).
- Abundance Generation, "Understanding the Risks" Retrieved 2013-01-26
- Nesta. "Nesta's Impact Investment Portfolio". Retrieved 2013-05-18.
- Independent (7 October 2012). "If the tories really want to be green". The Independent (London).
- Guardian (18 May 2012). "Abundance - Small business, big idea". The Guardian (London).
- BBC (29 October 2012). "Is crowd-funding the future for wind farms in the UK?". BBC News.
- Sunday Times (22 April 2012). "Fivers make the windmill turn".
- Lovemoney (23 August 2012). "Crowdfunding: Invest in green energy with Abundance".
- BNRG (10 December 2013). "Abundance launches first solar off".
- businessGreen (15 October 2012). "Renewable energy - the gift that keeps on giving".