There are relatively few choices for investors interested in accessing British renewable energy companies through listed vehicles

Unfortunately there are a number of dubious schemes that propose to help investors invest in the renewable energy sector. I am bombarded on a daily basis by non-FCA regulated appeals to invest in bonds and other financial instruments. Hence it is a welcome change to examine the appeals of Good Energy Group, a Wilshire-based energy supplier.

All I really want is money in my pocket, cash in my hand, oh

One of the difficulties in accessing UK renewable energy businesses is the challenge in developers monetising their assets. There are relatively few listed entities in the renewable space and one of the most interesting ones is Good Energy Group. Good Energy not only owns renewable energy assets but provides energy to over 100,000 customers in both the personal and small business space.

The group was formed in 1999 by Oxford graduate Juliet Davenport. She remains the CEO of the company to this day. Good Energy sources its electricity from a mixture of PV, wind, hydro and biogas. The company states that wind comprises the biggest contributor to its renewable supplies at 54% of the energy mix.

The company itself is split into three areas, of which one is declining in size. That is energy generation, the supply of energy to its customers and FIT administration. In case you are wondering what FIT administration is (I am), it is the administration of feed in tariffs available to small scale energy generators of solar panels and others.

Good Energy Group are listed on AIM, having previously been listed on the now defunct PLUS.

On the electricity side as well as generating its own energy Good Energy Group purchases from 1,000 small scale independent energy generators.

Its gas supply is more complicated. 6% comes from biomethane while 94% of its energy is traditional gas but with offsets used to reduce the impact from emissions. Good Energy noted that it is looking to increase the proportion of gas from renewable sources.

Good Energy is one of the UK’s best known green energy suppliers and its unusual position as both a generator of renewable energy and a supplier gives it a solid grounding in a competitive landscape.

For the year to December 2016 Good Energy made a pre-tax profit of £1.4m on sales of £90.4m. The group also paid out a dividend of 3,3p a share, a yield of 1.2%.

Note: Neither the author nor any of the members of the Renewables Investor staff have received any payments from Hybrid Air Vehicles or associated companies. All travel expenses were paid for by Renewables Investor. The above does not constitute financial advice and those seeking out financial advice should seek out the services of an Independent Financial Adviser.