Populo Energy, an operator of solar power projects in East Anglia and Norwich, is raising £6.25 million on the Downing Crowd investment platform.
The business currently runs 33 solar assets, including roof-mounted solar installations ranging in size from 49 Kilowatt hour (kWh) to 239kWh and ground-based solar sites. Together, Populo’s solar projects currently generate enough electricity to produce power for 1,900 UK homes for a whole year.
Solar installations make money by converting solar energy into electricity. Every Megawatt hour (MWh) of energy generated is sold to create an income by way of a Power Purchase Agreement and the price is determined by supply and demand.
How does the £6.25 million fundraise work?
The Downing Crowd platform enables investors to lend directly to a wide range of UK businesses via bonds that are secured against a company’s assets. This security seeks to reduce investor risk by enabling Downing, as security trustee, the right to sell these assets if the Borrower defaults on the Bond. The £6.25 million bond for Populo Energy will allow investors to earn 4% p.a. interest over a period of up to 16 months.
The Downing Crowd platform launched in March 2016 and has so far raised over £66 million on behalf of UK businesses. Of this, more than £25 million has been lent to energy businesses. Downing Crowd is part of investment manager Downing LLP, which also has significant expertise in the energy sector, having invested more than £500 million into energy businesses since 2010.
Julia Groves, Partner and Head of Digital at Downing LLP, commented:
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