Abundance: Green Deal Finance Company

“The new owners of The Green Deal Finance Company group are bringing it back with significantly improved processes and a more focused consumer offer.”

Key features:

  • 12% a year return
  • 3-year minimum term

As Abundance, which until now has only marketed loans backed by renewable energy assets, notes on its main project page, “this Debenture is significantly different to the investments we usually offer in terms of structure and risk: you are lending your money to a business to be invested in technology, marketing and working capital in order to help it meet its objectives.”

In a nutshell, the Green Deal Finance Company is an organisation that provided loans to households to fund energy efficiency improvements. These loans were to be repaid through a customer’s energy bill, and would be offset by the energy savings made.

It was considered a good idea in theory, however take-up of the scheme was low and there was a view that the Government, which originally funded the scheme, had failed. Funding was pulled in 2015 under the newly-elected Government, at a point when the team felt the scheme was starting to take off.

The new owners see the potential in the Green Deal to dramatically improve the poor energy efficiency of the UK’s housing stock and build a successful business at the same time. The funds raised by this 3-year, short term debenture will provide capital to GDFC Services, the main operating company in the group, to revitalise the original scheme. They intend to invest in improved marketing and communications, sign up more installers, improve the customer journey and improve the website.

This process has already begun and should result in a measurably better service, with a drastic reduction in the time taken to get a Green Deal loan approved and a much smoother process for homeowners and installers alike. This, in turn, will increase the take up of Green Deal finance.

There are two separate offers available; one for investments of £5 up to £100,000 and one for investments of £100,000 or over. If you would like to invest £100,000 or over please contact Abundance to register your interest.