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Post by Ton ⓉⓞⓃ on Oct 21, 2014 11:42:01 GMT
Target rate 7% series one... new idea, breaking new ground!
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brad
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Post by brad on Oct 21, 2014 12:09:12 GMT
Interesting but not sure its exactly new ground. There are 3 companies trading on the stockmarket - Greencoat, Bluefield Solar & Renewables all paying around 6%. These have the advantage of potential & probable increase on capital as their NAV rises. For instance, Greencoat has just announced a 3 month NAV rise from 102.7p to 104.8p & the share price has risen since flotation in Mar 2013 from 100p to todays 108p. Also the divi is expected to rise with RPI which should increase the share price. So it will be interesting reading on what this new investment entails. If it's a flat 7% then i think i would rather invest in the 3 companies on the LSE.
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Post by planetx on Oct 21, 2014 17:37:03 GMT
I had the impression that rather than being an investment in its own right, this will be the account in which all your loans to wind turbines and other renewable installations will be held. I don't know what significance (if any) the 7% target rate has but most of these projects so far are paying 9 - 10%.
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Post by Ton ⓉⓞⓃ on Oct 21, 2014 17:58:40 GMT
I had the impression that rather than being an investment in its own right, this will be the account in which all your loans to wind turbines and other renewable installations will be held. I don't know what significance (if any) the 7% target rate has but most of these projects so far are paying 9 - 10%. I'm assuming these are long term investments, not loans to guys who will refinance in a year or two.
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bugs4me
Member of DD Central
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Post by bugs4me on Oct 21, 2014 21:55:48 GMT
But 7% isn't particularly encouraging in my book. So not for me. There are greener fields elsewhere even within AC.
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niceguy37
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Post by niceguy37 on Oct 21, 2014 22:00:24 GMT
But 7% isn't particularly encouraging in my book. So not for me. There are greener fields elsewhere even within AC. Indeed. It may prove a tough sell at 7% compared to the existing wind turbine deals on offer. We'll have to wait and see what incentives there are.
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bugs4me
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Post by bugs4me on Oct 21, 2014 22:14:33 GMT
But 7% isn't particularly encouraging in my book. So not for me. There are greener fields elsewhere even within AC. Indeed. It may prove a tough sell at 7% compared to the existing wind turbine deals on offer. We'll have to wait and see what incentives there are. And I'm simply not a lover of green energy. Agree with it in principle but it's the heavily subsidised FIT that I don't trust. Believe these were slashed in Spain last year as they could no longer be 'afforded' by the government - and yes, they were guaranteed FIT at commencement. Think there are rumblings that Germany is also looking at those guarantees. I simply don't trust our political masters - whoever they may be. Now if the Trade Descriptions Act applied to their pre-election promises they would all be in jail by now.  Stand to be corrected on my facts on this.
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brad
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Post by brad on Oct 22, 2014 9:03:00 GMT
Indeed. It may prove a tough sell at 7% compared to the existing wind turbine deals on offer. We'll have to wait and see what incentives there are. And I'm simply not a lover of green energy. Agree with it in principle but it's the heavily subsidised FIT that I don't trust. Believe these were slashed in Spain last year as they could no longer be 'afforded' by the government - and yes, they were guaranteed FIT at commencement. Think there are rumblings that Germany is also looking at those guarantees. I simply don't trust our political masters - whoever they may be. Now if the Trade Descriptions Act applied to their pre-election promises they would all be in jail by now. Stand to be corrected on my facts on this. The FIT in the UK is not paid by the Government but by the suppliers who then pass it on to the customers, unlike in Spain. Spain basically was bailing out the utility companies, ie buying their debt and so increasing the governments debt. Therefore i am more confident that the UK will probably not go the way of Spain. We all know that the FIT is decreasing & so future installs will obviously have a lower return. That's why these newly formed companies are buying up older Wind & Solar farms.
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pikestaff
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Post by pikestaff on Oct 22, 2014 9:38:38 GMT
I had the impression that rather than being an investment in its own right, this will be the account in which all your loans to wind turbines and other renewable installations will be held. I don't know what significance (if any) the 7% target rate has but most of these projects so far are paying 9 - 10%. I may have said this somewhere else, but I can't find it now: I think this product is going to be a managed fund that will invest in green deals on the site and will aim for 7% after fees and dead time. I also think it is being developed with half an eye on the p2p ISA market. Most ISA investors will be looking for managed funds; they won't want to micro-manage their investments.
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Post by chris on Oct 22, 2014 10:31:48 GMT
But 7% isn't particularly encouraging in my book. So not for me. There are greener fields elsewhere even within AC. Indeed. It may prove a tough sell at 7% compared to the existing wind turbine deals on offer. We'll have to wait and see what incentives there are. There's a few reasons for the rate but one major one which will become apparent when it's launched.
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