Investors in the £10m bond issued by A Shade Greener, a supplier of domestic solar panel systems, will receive the full three years’ interest of 18% before tax within 30 days of investing.

The Greener Bond, a three year fixed term product, will accept minimum investments of £1,000.

A Shade Greener installs solar panel systems free of charge on selected homes in the UK.

The company, which has already carried out more than 24,500 installations across the country, has to date been financed with more than £250m from banks, pension funds and investment houses. This is its first retail bond offering.

The proceeds of the bond issue will be used to purchase solar panel systems that are already installed and operational, so investors are not exposed to construction risk, the company said.

Stewart Davies, chairman of A Shade Greener, said:

“A Shade Greener has made free solar panel installations available to the public and now we’re opening up the opportunity for everyone to invest profitably in green energy and contribute to the fight against climate change.

“The return is attractive given the security of income and the current low interest rates available on cash deposits. The decision to pay the interest upfront demonstrates our confidence and makes the investment even more attractive.”

In addition to domestic solar panel systems, the proceeds of the Greener Bond issue will be used to purchase high quality ‘everlasting boilers’ installed by A Shade Greener in residential properties and rented to the householders, providing energy efficient boilers for less than £40 a month.

Up to 10% of the proceeds raised may also be used to purchase commercial biomass systems.

Retail bonds are unlisted, non-transferable and non-convertible.

Unlike with a savings account, there is no deposit protection on a retail bond, so there is a risk of loss.