If you’re keen to invest directly in projects that are working to create positive change in the UK, you can do so through an Innovative Finance ISA (IFISA).
An IFISA is a type of ISA that allows you to include investments that have been made via crowdfunded bonds or peer-to-peer loans. As with any ISA, you can invest up to £20,000 per year without paying any tax on your returns or interest.
Here we round up our top 3 investments for a green IFISA:
Wenea – a leading mobile energy provider in Spain – is electrifying the transport system in Devon. It is tackling the problems of air pollution and carbon emissions by providing a public network of rapid electric vehicle chargers.
Through its Rapid Charging Devon project, Wenea aims to provide a template for other on-street charging initiatives across the UK. It will deploy at least 100 rapid Electric Vehicle (EV) chargers across 44 locations in Devon, enabling more people to make the switch to electric vehicles.
Rapid Charging Devon, along with Co Cars which previously raised finance through Ethex, is showcased in a recent Government toolkit that outlines how other councils can successfully bring together EV charging infrastructure and car clubs.
Wenea, which aims to raise £2.1 million, has a minimum investment of £500 with a targeted tax-free return for investors of six per cent over 10 years.
Sheriffhales Community Energy runs a 3.2MW community-owned solar array that provides clean energy while funding local community initiatives in Shropshire.
It benefits from a government-backed feed-in tariff subsidy, which means it receives a guaranteed minimum price for the electricity it supplies to the local network. Sherrifhales currently generates more than £400,000 in revenue per year and is expected to make £1 million over its lifetime, which will fund local community initiatives. It has already allocated £150,000 to local causes.
Sherrifhales Community Energy aims to raise £925,000 to repay short-term finance on the purchase of the array and allow it to continue to generate revenue that benefits the local community. Minimum investment is £100 with a targeted return of four per cent over 15 years.
Empower Community is a social enterprise designed to accelerate the transition to sustainable low carbon local economies, by seeking to ensure that the financial benefits of renewable energy go back into local communities.
Lending from Triodos Bank has already supported two Empower Community solar projects: Drove Lane Solar Park in Wiltshire, and New Mains of Guynd Solar Park in Angus, Scotland. Together the projects should help provide almost 9,800MWh of clean energy annually.
Triodos os offering a 4.25 per cent inflation-linked-interest bond over a 16-year term to refinance these fully-operational sites.
Risk warning: Your capital is at risk and unlike other ISAs, IFISAs are not covered by the Financial Services Compensation Scheme (FSCS).