Octopus Energy has launched the investment platform ‘the Collective’, aiming to give more people across the UK the opportunity to own a piece of a green energy project.
The first-of-its-kind platform allows people to directly buy a share of a renewables project like a wind turbine or solar farm, at a time when a recent YouGov survey revealed one in three British people want to invest in green power.
According to Octopus Energy, with a minimum investment of £25, any returns go straight into the investor’s pocket as there are no fees and it is free to join.
The move makes Octopus the first energy company in the UK with a retail investment platform regulated by the Financial Conduct Authority.
Zoisa North-Bond, CEO of Octopus Energy Collective, said: “Moving to renewable energy represents one of the biggest investment opportunities of our generation – and people can play a powerful role in driving it. 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.
“We’re at the start of a people-powered renewables revolution – and ‘the Collective’ platform is bringing green energy ownership to the many, not the few. It’s time for more people to have the chance to take a stake in their clean energy future.”
The platform launches with two wind turbines in Yorkshire and Wales, with plans for several more renewables projects across the country. They offer an annual target return of up to 6% with an investment term of three years and will be part of Octopus’ ‘Fan Club’ scheme, where customers nearby enjoy discounted electricity when it’s windy.
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 be able to monitor any returns they earn as well as the clean energy generated from the project in their Collective account. Octopus Energy customers also have the option of linking potential dividends to their energy accounts to reduce their bills.
To provide additional benefit for those taking part in these first projects on ‘the Collective’, Octopus is underwriting initial investments made in these turbines.
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.
