Green fund expected to benefit smaller eco companies in the UK and investors

News - Banking

Written by Ray Clancy

Wednesday, 03 March 2010 10:09

A green fund designed to introduce much needed capital into small but ambitious growing environmental businesses and offer a range or tax reliefs to investors who buy shares is open until the middle of next month.

The Triodos EIS Green Fund II has already seen significant take-up and investment by those who want to invest in emerging new technologies which will benefit the environment, it is claimed.

The venture capital funds will invest directly in some of the UK’s most sustainable businesses with strong growth potential, in sectors including renewables, energy efficiency and recycling, according to fund manager Gareth Zahir-Bill.

The fund invests between £400,000 and £1,250,000 in companies with a strong track record that qualify for the Government’s Enterprise Investment Scheme. The scheme is designed to help smaller, growing companies to raise finance by offering a range of tax reliefs to investors who purchase shares. The fund remains open to new investors until 9 April 2010.

Triodos, the world’s leading sustainable bank, has completed a £300,000 investment through their EIS Green Fund in a UK solar installation business, as the market for renewable energy generation prepares to grow significantly, he revealed.

The investment in Southern Solar completed on the same day that the Government unveiled the details of their new Feed in Tariff (FIT) scheme which reimburses people, communities or businesses for every kWh of renewable energy they produce.

With the FIT return per kWh for solar energy generation higher than any other renewable energy technology, and the cost of solar energy generating equipment lower than ever before, it is predicted that the solar industry will enjoy increased growth through 2010.

In addition, sales of solar water heating equipment are expected to grow as the Government prepares to introduce financial incentives for the generation of heat from renewable sources.

‘Southern Solar’s steady business growth over the last four years has led them to become a perfect investment opportunity for the Triodos EIS Green Fund. We are very pleased to have invested in a company who we feel are at the forefront of a growing market,’ said Zahir-Bill.

‘The UK looks set to follow the lead of continental Europe in the uptake of solar energy generation. The planned Government incentives, the falling cost of equipment and a commitment from the public sector and social housing sector to build to higher environmental standards will result in a significant increase in sales for well positioned and managed companies,’ he added.

The Enterprise Investment Scheme (EIS) is one of the most tax efficient investment schemes in the UK, according to Zahir-Bill. ‘Triodos EIS Green Fund II offers compelling growth potential through investment opportunities made available to Triodos through its banking and industry networks. Recognising that many banks are ignoring green investment opportunities at a time when the industry is about to grow, Triodos is bucking the trend in the financial services sector,’ he added.