Abundance Generation has revealed its latest renewable energy crowdfunding initiative has proved its most successful to date, with over £400,000 of debentures purchased in less than a month.

The company confirmed the SunShare Community Nottingham project, which is seeking to refinance 572 kWp of existing roof-mounted solar panels in Nottingham, has seen investment in the scheme run at more than double the rate enjoyed by previous schemes.

Investment in Abundance projects is made through the purchase of debentures – official IOUs that guarantee the holders a share in the profits made by the project. Debentures for the Nottingham project will pay a fixed return of 6.65 per cent IRR over its 19 year life, although early bird investors can earn an additional 0.3 per cent.

The company said participants would also receive capital repayments, so an individual investing £950 could expect to receive £90.39 a year, consisting of a £50 capital repayment plus £39.93 in interest and £1.43 in a “Pioneer Bonus”. Returns are paid in twice yearly payments over the term of the project, although investors can sell their holdings on to others via the Abundance website.

Crucially, Abundance’s crowd-funding model allows investments to start from as little as £5, opening the scheme up to a wide audience of potential investors.

Bruce Davis, co-founder and joint managing director of Abundance Generation, said the surge in investment highlighted the growing attractiveness of renewable energy investment.

“Investing in UK solar projects is now breaking through to the mainstream investor,” he said in an emailed statement. “This is reflected in both the speed of this raise and growing numbers of investors looking for income returns from investments directly into renewable energyassets.”

He added that the news was a vote of confidence both in the sector and the crowdfunding model.

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