View more on these topics

Goldfield EIS fund offers last chance FITs opportunity

The Goldfield solar EIS fund provides one of the last opportunities investors will have to benefit from feed-in-tariffs with enterprise investment scheme tax relief.

FITs are Government incentives for individuals and companies to generate their own electricity using renewable energy such as solar power. They provide a fixed payment for each unit of electricity generated for 20 to 25 years, providing a predictable, long-term inflation-protected revenue stream for investors.

However, from next April, no new shares will be issued by schemes that benefit from feed-in-tariffs because these will no longer qualify for inclusion in an EIS. This follows a Government review on the back of concerns that firms were creating solar farms, exploiting subsidies in a way that was not intended.

In keeping with the original purpose of FITs, the Goldfield solar EIS fund invests only in solar panels that are already installed in residential properties through an agreement with A Shade Greener, an installer of solar panels to homes in and around Yorkshire. These systems have not been affected by the Government review, which was concerned with much bigger systems.

Goldfield has already raised around half the £10m it is looking to raise for this EIS fund and has been able to increase its initial target return of £1.11 to £1.18 at year four. The firm has its own You Tube channel to keep investors informed as part of its commitment to transparency.

The focus on existing solar panels minimises risk, as there are no planning and development risks, and benefits from higher tariffs than solar panels on new properties. Investors can also remain in the fund after the EIS relief ends to benefit from the index-linked income generated by FITs.  Foresight and Invicta may provide competition, but investing in a single sector limits diversification so that performance is dependent entirely on the performance of the solar investments.

Recommended

Halifax pulls equity-release alternative home scheme

Halifax has withdrawn its retirement home plan which was marketed as an alternative to equity release and aimed at people over 65. An equity-release balance increases over time while the retirement home plan stayed at the same balance, with only interest payments having to be met each month. The maximum amount that can be raised […]

Whiteaway Laidlaw Bank acquires Link Loans

Former Manchester Building Society subsidiary Whiteaway Laidlaw Bank has acquired secured loan lender Link Loans. WLB, a specialist bank which was acquired by RBS Equity Finance in January, will rebrand following the acquisition of Link. WLB new business director Stephen Johnson says: “Link loans has made a real impact in the secured loan market, achieving […]

Argonaut set to split from Ignis Asset Management

Argonaut Capital Partners is set to become operationally independent from Ignis Asset Management, following in the footsteps of previous joint venture boutique Hexam which split off last year. Ignis will retain a financial interest in the European equity-focused boutique, as it did with Hexam. Currently, the business is structured as a 50/50 joint venture between […]

1

Private rented sector is a “golden opportunity”

They say hemlines mirror the economic climate, but is the private rented sector about to mirror the swinging 60s of mini-skirts and psychedelic music? If so, this could provide a golden opportunity for fuelling growth of profitable intermediary business in mortgages and landlord insurance protection. The private rented sector is already regarded as “home” by […]

Derek Stuart: where to find value in the UK?

Derek discusses a number of Œself-help stories as examples of where he is finding good opportunities in the UK With the FTSE trading at historically high levels, many investors have questioned whether UK equities continue to offer value. But, as Derek points out, the headline figures mask many opportunities at a sector level. He has […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment