The money you invest are in form of a loan to the project owner/project developer. You receive an annual interest rate during an agreed amount of years - and by the end of the period you get your investment back. If the project is about starting a new power plant, the money goes into equity that is presented to the bank who then releases the remaining funds to develop the power plant. Typically 30
% of the total capital needed is raised through Crowdlending – and the remaining 70% is borrowed through a bank. The start-up investments typically give out 5-6% interest rate and have an investment horizon of 4-7 years, after which you will get your initial investment back and can reinvest it into other projects or take it out for your personal use. Some projects are for existing Power Plants which are in operation. they aim to increase production, renew facilities or relief the project owner of a part of the risk. These projects typically come with an even lower risk profile (as the power plant has already proved that it generates profit) and therefore also lower interest rates + longer-term investment horizon. Loans to ongoing production typically have an investment horizon of 7-15 years and the interest rate you will receive, is typically 4-5 %.
