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Octopus Energy Introduces a Renewable Energy Investment Platform for Consumers
Octopus Energy, the UK’s largest energy supplier, has unveiled a ground-breaking investment platform that allows consumers to purchase shares in renewable energy projects. Known as ‘The Collective,’ this first-of-its-kind initiative empowers customers to directly invest in green energy. With a minimum investment of just £25, participants can support renewable projects without worrying about fees, as the platform is free to join, ensuring that all returns go directly to investors.
A YouGov survey found that 33% of Brits are interested in investing in green energy. In response, Octopus Energy has become the first UK energy company to offer a retail investment platform regulated by the Financial Conduct Authority (FCA), aiming to meet this growing demand. The platform has launched with 2 wind turbines located in Yorkshire and Wales, both of which are part of Octopus’ ‘Fan Club’ scheme. This initiative alerts nearby users when the turbines are generating power and incentivises them to schedule energy-intensive activities during these peak periods.
The wind turbines offer an annual target return of up to 6% with a 3 year investment term. To encourage participation, Octopus will underwrite initial investments in these wind farms. The company also plans to expand the platform by adding several more renewable energy projects across the UK.
Members of ‘The Collective’ can track their returns and monitor the clean energy generated by each project. Octopus Energy customers have the option to link potential dividends to their energy accounts, helping to lower their bills. After 3 years, the project intends to repurchase shares in the initial 2 wind farms at the original purchase price. Investors can then choose to withdraw their funds or reinvest them into other renewable projects on the platform.
Zoisa North-Bond, CEO of the newly launched 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’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.”
For over a decade, the community energy model has allowed local members to invest in renewable energy projects, earning interest from the revenue generated by selling the power. Octopus’ platform takes a different approach by enabling investments from individuals across the entire country, rather than being limited to specific local communities. As a result, it is not strictly ‘community-led’ in the traditional sense. If you’d like to read more about community projects, have a look at the Institute’s recent article here.
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