E2 Energy

by E2 Energy Ltd

This offer has been signed off by Trillion Fund Ltd

About the project

More about the project

NB. For lenders to this project concerned about the impact of the end of the Renewable Obligation subsidy for onshore wind, please note that this announcement will not affect your loan to E2 Energy. For more information, read this blog.


Known as “small-scale”, “distributed” or “farm” wind, these turbines do not form part of a large wind farm, but instead are single installations in rural locations that power a single site, such as a farm or business park.

They are “50kW” turbines, however they have the capacity to produce up to 80kW of power at any given moment dependent on the strength of the wind.

They are known as Endurance E3120s, which differ from other makes of turbine because at 3,120 sq ft, the swept area of the blades is relatively large for the size of the turbine.

The technology used inside is proven, including Siemens gearboxes and ABB generators.

An Endurance turbine hub at Hartlebury manufacturing plant

Watch the video

Guide to wind power

Watch our ‘investing in wind’ video








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Opinions and comments mentioned on the Trillion Fund Web site are the personal views of individual contributors. Trillion Fund takes no responsibility for these views.
MikeL 13 August 2014 - 12:46

Hi Julia

Could you please advise on two queries I have?

1. How old are these assets which are held as security for the loan, i.e. how many years have the five operating turbines been in operation?
2. If the plan was to sell these 5 turbines at the end of the loan period, has the borrower thought about selling these turbines now to source the funds?

Many thanks!


jsg 03 August 2014 - 17:34

Hi Thegreenerthebetter,

You and other lenders, represented by Trillion Fund acting as your agent, would have the only call on the turbine assets.

Unlike other crowdfunds this raise will not overfund, at a fixed £1.25m, the loan is around 64% of our estimated sale value of the assets (the turbines).

See page 18 of the offer document for more detail.



Easy 02 August 2014 - 21:54

Hi - this sounds like a great project and a great investment. I am curious about the security for the loan though, which is against existing wind turbines. Would I along with the other trillionfund investors be preferential creditors in the event of insolvency or are there others who would also claim security against the turbines who might have preference ahead of us?

jsg 23 July 2014 - 22:04


Ask as many questions as you like, we want to make sure everything is really clear.

The risk section on page 18 of the offer document comments on the risk of changes to Feed in Tariff, and I responded on another lender's question relating to what happens if the target isn't reached on 04/07, can you scroll down the comments and find that?


Palmer James 23 July 2014 - 21:47

Hi Julia,

Thanks for the info. I also have a question about two risks.
The two risks are the potential UK government cuts to renewables (1) and should the total loan amount of £1,250,000 not be raised in the time limit (2)
I know the first question is asking for a 'crystal ball' answer but could you give an estimate on whether the UK government is likely to cut renewable subsidies?
What would happen to lenders in the case of (2)?

jsg 23 July 2014 - 20:08

Hi Polo1

P21 of the offer document explains the tax.

When you get your interest payments they will show as a credit on your Trillion account that you can then withdraw or relend/reinvest as you see fit.


Palmer James 23 July 2014 - 19:48


Another question came up which was can the interest payments be added to the existing loan or transferred to another account?

Palmer James 23 July 2014 - 18:57


For HMRC UK tax, can you let me know if the interest rate paid falls under 'investment'; and if it is an 'investment' would there be tax paid on lending between £500-£1000?

jsg 23 July 2014 - 18:04


Please check p22 of the offer document which explains the commencement date - there is a note explaining when interest starts accruing, which is effectively from the date that the loan closes but please read the offer document for a full explanation.


jsg 23 July 2014 - 18:01

Hello Paul C,

In response to your questions, the yield is set by the borrower and varies offer by offer, based on various factors including the term of the loan and the level of risk.

EIS is restricted to share offers, whereas this particular project is a loan and so would not qualify unfortunately.

Hope that helps


samveitch 23 July 2014 - 16:25

Can you tell me if interest is worked out from when we invest or from when the funding target is reached?

paulc 22 July 2014 - 17:04

Interesting, although why is yield lower than previous offers. Also, wouldn't it make sense to structure as an EIS or similar (or at least offer this as a parallel option as minimum investment size would be larger)

jsg 14 July 2014 - 12:05

Hello Howard,

Yes your understanding is correct. The 7.25% figure is the annual interest rate, and the interest is paid every six months.

So a £5,000 investment will pay £181.25 every six months or £187.50 if you invest before July 31 and get the early bird bonus of 0.25% to take your annual interest to 7.5%.

Give us a call if you have any other questions or post as many as you like here so all can see.


Howard3008 12 July 2014 - 15:33

"Annual interest rate of 7.25% payable every 6 months for 36 months" Does that mean I will get 7.25% every 6 months or 3.625 every 6 months?

I am right in thinking it is 7.25% over the course of 1 year?

Rebecca O'Connor 08 July 2014 - 17:50

Hi Guy - thanks very much for pointing out the typo - it should have read "energy" in both cases and we have now corrected. All the best, Rebecca

Guy 08 July 2014 - 12:08

I've never read such rubbish. Since when has a turbine generated wind! Quote 5th paragraph above:

Together, the five, 50kW turbines that your money will be secured against generate enough wind annually to power 228 homes (752,188 kWh), although the wind generated by these turbines will be used to power farms and local businesses, with any remaining energy sold to the grid.

jsg 04 July 2014 - 19:11

Hi Jamie,

Yes the target is £1.25m and it is what is known as a 'fill or kill' agreement. Charming terminology isn't it! This means if the target isn't reached the deal won't go ahead and we will send you all your money back.

All the loans are held in a separate bank account with Trillion and no money is transferred to E2Energy until the target is hit, and everyone has had their 14 day 'cooling off period' - in case you change your mind for any reason.

Then E2Energy issue the loan contracts and we send the money over in one big chunk.

E2Energy plan to raise £5m in total over the next 12 months, but rather than do that all in one go, we have agreed it is better for all to start with £1.25m, they can show us what they achieve with that and come back with another offer to raise money for the next phase of construction.

Remember that your loan would be secured against existing and operational turbines, but this way you can take credit for five more being built, so it feels like your money is making a profit and making a difference.

Hope that helps


Jamie Andrews 04 July 2014 - 18:45

Hi there, this looks great, but please can you clarify what happens if the target fundraise isn't reached? Do we all get our money back? Thanks!

jsg 30 June 2014 - 08:30

Good morning Ellinas,

The 7.25% or 7.5% is the interest paid to lenders *after* the Trillion loan administration fee.

The quickest way to check this is to look at page 9 of the Loan offer document which breaks down the fees and returns. So I hope this is not misleading.

For future reference we will always publish and advertise the returns for lenders after all fees. The 1% in our Ts and Cs is our maximum fee for aggregating a large number of smaller loans into one bigger one, and administrating repayment of both interest and capital. For the E2Energy loan we have reduced our fee to 0.49% until July 31, 2014 when it changes to 0.74% so that lenders get a better net return.

Hope that helps clarify.


Ellinas 30 June 2014 - 08:13

Although the interest rate on this loan is 7.25% or 7.5%, depending on when one lends, I see in your T&Cs that you charge lenders a 1% per annum management fee. That is most unusual, as borrowers normally bear all the costs of financing. If that is the case, then the net return is 6.25% or 6.5%. As this fee is tucked away in your terms, I bet most people will not come across it. Are you not misrepresenting the case somewhat?

jsg 28 June 2014 - 15:40

Hi Gravy x10,

The loan is indeed for 36 months on turbines that are operational and have 20+ years of income ahead. The company will accrue some capital over the three year period (around £180,000 based on projected revenues and costs) but not enough to pay the loan in full. They will therefore seek refinance of the difference - in this scenario around £1.07m. Your loan would be secured, and in the event that the company were not able to refinance, and that the owners Earthmill and Endurance did not opt to buy the turbines back themselves, Trillion, as security trustee, would step in and sell the assets on behalf of our lenders. For this reason the loan to value is below 65% and has been stress tested under different scenarios so that the risk of losing capital is reduced. The 7.25% interest rate (7.5% for those who lend before 31 July) reflects both the re-finance risk and others outlined in the offer document which you should read before lending.

Happy to discuss further if you like - we will be in the office from 8am Monday and you can ask for me.

Julia Groves

gravy10x 28 June 2014 - 14:29

This looks like an interesting project and its great that there are new types of funding opportunities coming like this for renewable projects. i am just curious how it will work in practice. Your literature above states 'This is a long-term loan' but then that the investment term is for 36 months which does not sound so long as hopefully the project will be operational for 15-20 years or so. My question is that this appears to be much closer to a bond that covers working capital rather than a finance bond for the project and if that is so I would like to know what the risks might be associated with the potential for refinancing etc. Maybe I am missing something but this does seem a little risky overall (for 7.5% return at least).. thank to clarify!

Rebecca O'Connor 19 June 2014 - 16:44

Hi EthicalLee - thanks for the thoughts. Of the five farms with turbines that the loan is secured against in this raise, one is a dairy farm, two are arable, another is cattle/ B&B, and the fifth is agricultural/ business park. Five sites of a possible 12 with planning permission will see turbines installed with the money, so we don't yet know what type of farms these will be (But if you would like to know I can find out!)

So the connection with cows is loose but relevant, though I would hardly call the loan "supporting livestock production". One of the reasons that farmers like to have turbines on the land is that cows can graze right up to them and they do not take up much valuable land. And as farmers own much of the land in the UK that is suitable for turbines, it is important that they are beneficial to their businesses, or else we wouldn't have many turbines in this country at all. At least their industry is decarbonising its electricity use. So on the contrary, I don't think this is a contradictory message, I think it is a practical one: as long as we have a farming industry in this country, let's help decarbonise it. And in the end, wouldn't we all just like to see more clean energy?

jdaviescoates 19 June 2014 - 13:10

Hey EthicalLee, whilst it is true that factory farmed livestock is both abhorrent and a huge contributor to climate change, it is also true that sustainably farmed grass fed cattle farms can be large carbon sinks.

Like most things, it isn't as simple as livestock = bad.

I highly recommend spending an hour watching this video "Allan Savory - Keeping Cattle: cause or cure for climate crisis?": http://vimeo.com/8239427 (or this 12 minute extract if you're in a rush http://vimeo.com/8291896 )

EthicalLee 19 June 2014 - 10:23

In principle, this sounds really interesting. However, I am not sure about the use of cows in your marketing information. If it is only for marketing purposes, it makes no sense so drop it. If cows (or other ruminants) are actually found on the land where the turbines are located, then someone needs to think long and hard about the conflict this poses. The cattle industry is a massive contributor to climate change so it seems a massive contradiction to be funding wind turbines to help with climate change whilst at the same time making climate change worse by supporting livestock production.

Anyone thinking of funding a project which includes such a contradictory message should be looking at alternatives not involving an increase in negative climate impact at the same time.

Hopefully, this is just a crazy marketing idea and the cows are imaginary and non-ruminant!!

What do you think?

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