A friend sent me
this link to Ripple Energy, a company which sets up a cooperative company which then invests in wind-farms that Ripple build/run. The idea being that you then get paid back in the form of energy produced by that wind farm, which then reduces your energy costs.
And the basic idea sounds simple/nice enough - buy a share of a windfarm, get paid in the electricity it produces. But it makes me feel uncomfortable, and I'm struggling to articulate why.
The way I want electricity to work is "Some people who are good at building/running electricity generators do so. And they then sell that electricity to me, competing against other providers to keep the price down." I don't mind "Slap some solar panels on my roof and keep the energy they produce for myself." But something as complex as "Buy shares in a coop that invests in a specific wind farm company to get electricity sent back to me (requiring me to buy it from their partners)." starts to feel like the kind of thing where to do it sensibly requires me to be fluent in various areas of business and law which I'm frankly not. It starts to feel like the kind of thing where it could be a giant scam and I wouldn't be competent enough to know in advance that that was the case.
Not a giant scam in the "Take the money and run" sense. But more in the "Be not that good at building or running wind farms, and not explain in great detail the risks, and not have arrangements with the grid to actually hook them up for a decade, and oh no it turns out that this is all more complex than we thought it would be and we've gone bust, paying our board of directors a few million along the way" - all of which are in the small print, and none of which is obvious to your average person.
My other thought is "What's in it for them?" - normally an electricity generator would go to some kind of investor (a large bank or someone else with huge wodges of money to invest) and show them very detailed plans, and people *whose job it is to investigate whether you are likely to be successful at generating electricity, and who have experience in the legal, financial, and politicial aspects of that* would scrutinise those plans and your competency, and then either lend you money or not, with careful wording around how that money would be taken back if things went wrong. And if you're an electricity generator then that would be a normal cost of business for you. Your reason for doing it a different way would be either if you thought that the investment bank would say "No" or because you thought you could get the money cheaper by doing it differently. Neither of which is terribly attractive to me as the provider either of money to someone a bank would say no to, or as someone who is the cheap option.
I'm possibly too cynical here. It's plausible that this is actually a great way to invest in the future of green energy, and I've just backed too many things on Kickstarter that never delivered. And if they can get investment in wind farms from ordinary people that pay off, and we get more wind farms built because of it, that's awesome!
So, have I missed anything obvious?