1Platforms like Ethex, Triodos, and Abundance let you invest from £5-£100 in solar farms, schools, and community projects with typical returns of 4-7% annually.
2Thrive Renewables has raised over £63 million through crowdfunding. Solar for Schools has raised £3m+ through six bond offers on Ethex.
3Many bonds can be held in an Innovative Finance ISA (IFISA), allowing interest to be received tax-free up to the £20,000 annual allowance.
4Capital is at risk and not FSCS protected. Investments are typically illiquid with no secondary market – plan for the full term.
Crowdfunding has become a significant source of finance for solar projects in the UK, enabling everyday people to invest directly in renewable energy generation. Platforms like Ethex, Triodos Crowdfunding, and Abundance Investment allow individuals to put as little as £5 or £100 into solar farms, rooftop installations, and community energy schemes. Thrive Renewables has raised over £63 million through crowdfunding in its 30-year history, while Solar for Schools has raised over £3 million through six bond offers on Ethex to install solar panels on schools across the country.
The crowdfunding model takes several forms. Community shares allow people to become member-owners of community benefit societies developing solar projects, with typical returns of 4-7% annually. Bonds offer fixed interest rates, often inflation-linked, with projects like Mendip Renewables’ 5MW solar farm offering 5% plus RPI through Triodos Crowdfunding. Many of these investments can be held in an Innovative Finance ISA (IFISA), allowing interest to be received tax-free up to the £20,000 annual allowance.
This guide explains how to crowdfund solar projects in the UK – covering the main platforms, types of investment, how returns work, the risks involved, successful UK campaigns, and how to find current opportunities.
Solar Crowdfunding at a Glance
Main UK platformsEthex, Triodos, Abundance
Minimum investmentFrom £5 to £100
Typical returns4-7% annually
Thrive Renewables raised£63 million+
IFISA eligibleMany bonds; tax-free interest
FSCS protectionNot available; capital at risk
What Is Solar Crowdfunding?
Definition
Crowdfunding
Raising money from many people, typically via online platforms
Solar crowdfunding
Using crowd investment to finance solar PV projects
Solar farms, rooftop installations, schools, community buildings
Types of Solar Crowdfunding
Type
Description
Returns
Community shares
Withdrawable shares in community benefit societies
Interest (typically 4-7%)
Bonds
Fixed-term loans to project; repaid with interest
Fixed or inflation-linked
Debentures
Long-term debt securities
Fixed interest
Equity
Shares in company (less common for solar)
Dividends; potential capital gain
How Solar Crowdfunding Differs
Aspect
Solar Crowdfunding
Traditional Investments
Access
Open to all; low minimums
Often higher minimums
Purpose
Direct link to specific project
Often pooled funds
Impact
Clear environmental benefit
Varies
Liquidity
Usually illiquid; long term
Often more liquid
FSCS protection
Not covered
Some investments covered
UK Crowdfunding Platforms
Ethex
Focus
Ethical investments; social enterprises; community energy
Investment types
Community shares; bonds
Minimum investment
Typically £100
IFISA available
Yes, for eligible bonds
Fees to investors
None (fees charged to organisations)
Awards
Community Energy Awards 2025; Fintech Awards 2025
Triodos Crowdfunding
Parent
Triodos Bank (ethical bank)
Total raised
£167 million for 43 organisations; 70 impact projects
Investment types
Bonds; shares
Focus sectors
Renewable energy; social housing; charity; organic food
IFISA available
Yes, for eligible bonds
Abundance Investment
Founded
2009 (operational from 2012)
Focus
Green and ethical projects; democratic finance
Minimum investment
£5
Maximum investment
£20,000
Account types
Standard; IFISA; pension
Sectors
Councils; wind; solar; energy storage; tidal
Types of Investment
Community Shares
Feature
Details
Structure
Withdrawable shares in community benefit society
Voting rights
One member, one vote (regardless of investment size)
Returns
Interest (not dividends); typically 4-7%
Withdrawal
Usually after lock-in period; subject to society rules
IFISA eligible
No (only bonds qualify)
Risk
Capital at risk; not transferable
Bonds
Feature
Details
Structure
Loan to project; fixed term; interest payments
Interest types
Fixed rate; inflation-linked (RPI); stepped
Term
Typically 5-20 years
Capital repayment
Usually at maturity or gradually
IFISA eligible
Yes (many bonds qualify)
Transferable
Yes, but finding buyer difficult
IFISA Benefit: Bonds held in an Innovative Finance ISA allow interest to be received completely tax-free, up to the £20,000 annual ISA allowance. This makes solar crowdfunding particularly attractive for those seeking ethical returns without additional tax burden.
Returns and Performance
Typical Returns
Investment Type
Typical Return
Notes
Community shares
4-7% annually
Interest; not guaranteed
Fixed rate bonds
4-6%
Guaranteed if project performs
Inflation-linked bonds
4-6% + RPI
Protection against inflation
Comparison: Cash ISA
3-5%
FSCS protected; liquid
Successful UK Campaigns
Project
Amount Raised
Platform
Solar for Schools (6 bonds)
£3 million+
Ethex
Thrive Renewables (lifetime)
£63 million+
Various
Burnham & Weston Energy
£4.5 million
Triodos
Low Carbon Hub bonds
Multiple millions
Ethex/Triodos
Risks to Consider
Key Risks
Risk
Description
Mitigation
Capital loss
Project failure could lose investment
Diversify across projects
Illiquidity
Cannot easily sell before maturity
Only invest money you can lock away
No FSCS protection
Not covered by compensation scheme
Limit to 10% of portfolio
Project delays
Construction/connection issues
Prefer operational projects
Revenue shortfall
Lower generation than forecast
Check projections are conservative
Interest rate risk
Fixed rates less attractive if rates rise
Consider inflation-linked bonds
Risk Management
The FCA classifies crowdfunding investments as high risk. Sensible precautions include: limiting high-risk investments to no more than 10% of your portfolio, diversifying across multiple projects and platforms, preferring operational projects with established revenue, and reading offer documents carefully including risk sections.
IFISA availableYes for eligible bonds; tax-free interest
Major successThrive (£63m); Solar for Schools (£3m+)
RisksCapital at risk; illiquid; not FSCS protected
Crowdfunding has opened solar investment to everyday people in the UK. Platforms like Ethex and Triodos Crowdfunding make it possible to invest from as little as £100 in community solar farms, rooftop installations on schools, and large-scale renewable energy projects. Returns typically range from 4-7% annually, with many bonds offering inflation-linked interest. Thrive Renewables alone has raised over £63 million through crowdfunding in its 30-year history, while Solar for Schools has funded installations on dozens of schools through bond offers totalling over £3 million.
The investment options include community shares, where you become a member-owner of a community benefit society with voting rights, and bonds, where you lend money at a fixed interest rate. Bonds can be held in an Innovative Finance ISA, allowing interest to be received tax-free up to the £20,000 annual allowance. This makes solar crowdfunding attractive for those seeking ethical returns without additional tax burden.
However, solar crowdfunding carries significant risks. The FCA classifies these investments as high risk, and capital is not protected by the Financial Services Compensation Scheme. Investments are typically illiquid, with no secondary market to sell before maturity, and returns depend on project performance. Diversification across multiple projects and platforms, careful reading of offer documents, and limiting high-risk investments to no more than 10% of a portfolio are sensible precautions.
For those seeking to align their investments with their values while earning returns comparable to savings accounts, solar crowdfunding offers a compelling option. The combination of government support, growing public interest in climate action, and platforms making investment accessible means opportunities to invest in UK solar continue to expand.
