Monday, 15 June 2015

Secured energy bonds debacle exposes dangers of investing in renewable energy schemes

The Guardian newspaper recently focused on the ongoing Tory offensive against renewable energy initiatives in general and wind turbines in particular (Zoe Williams, 13/6/2015). One of the untold stories has been how the public has responded to the regressive attitude of government to green technology - this has involved pouring their own money into a number of renewable energy projects. It is a laudable revolution taking place in the shadows.

However, investors should beware because this sector is virtually unregulated. Take the ongoing case of Secured Energy Bonds plc, an allegedly UK based company with an Australian parent, CBD Energy. The company took £7.5 million off 973 investors allegedly to provide solar panels on 22 schools. So far, so good, except that CBD Energy cleared off with most the funds before many panels could be fitted. Secured Energy Bonds plc has gone into administration.

The regulators in this country have done virtually nothing to help the 973 investors who now look set to lose their money. So although renewable energy is an ethical source for investment, the lack of regulation and possibility of losing all your cash is something to be born in mind

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