Goldfield Partners in London have launched UK`s first pension fund, which aims to help to finance, install and maintain solar power for social housing residents.
The Goldfield Solar Green Energy Fund claims a ₤50 million will offer stable returns as high as 8% to investors (this is based on a 3% inflation assumption), which will be generated by the UK feed-in tariff (FIT) scheme, while residents reaps the benefits of electricity generated onsite.
“We hope to fund a lot more free solar… for people who may not have been able to afford the equipment in the first place,” Goldfield Partners’ chief executive David Gammond told BusinessGreen. “If we can raise the [£50m] we would definitely expect the fund would get bigger.”
The assets that are available for purchase are all pre-installed and therefore already generating the minimum desired yield already from the get-go. The managers have already identified these assets and believe the investor`s money should be rapidly allocated.
However, with the recent cuts in UK`s feed-in tariff scheme, the market does not seem to provide a good foundation of stability that the company looks for. Gammond admits that if there are any more dramatic changes to the feed-in tariff, they would have to reevaluate the pricing of the PV equipment.
Goldfield Partners is still confident that they will be able to reach their goal of raising ₤50 million for the fund. Contracts with solar installers for the entire amount are already in place. Their subscription target is already set at June 2013.
New funds and investments in the renewable energy sector will undoubtedly lead to job creation, lower energy bills, but maybe more importantly a better public awareness of energy saving. Let`s hope there are no further cuts in the feed-in tariff any time soon.
This article is written by Mathias Aarre Maehlum. He writes more on solar panel costs at Energy Informative.