Finance for Renewable and Energy Efficiency Technology

We take a lifetime value approach to every system we design and install. For some of our clients, sustainability and planning requirements are the primary driver. For many others, the financial return is the key consideration. In simple terms, the lifetime cost per kWh generated, saved or stored by your system must be lower than the cost of electricity bought from the grid.

We recognise that solar and battery systems require an upfront investment. In effect, investing in solar is similar to paying for several years of electricity in advance, with the expectation of receiving many more years of reduced or free electricity afterwards.

At the same time, most businesses are balancing multiple demands for capital. It is not always practical to fund a project outright from cash reserves.

Fortunately, the energy efficiency sector is well-established in both technical and financial innovation. There are several routes that allow organisations to install solar and storage systems with either reduced upfront cost or no upfront cost at all. When requested, we can help identify the most suitable finance partner to support your project, taking into account pricing, tax treatment and long-term objectives.

Cash Neutral or Cash Positive from the Start

Because the payback period of a commercial solar installation is typically shorter than the operational life of the system, finance can often be structured so that the project is cashflow neutral or cashflow positive from day one. This allows you to benefit from lower electricity costs immediately, without negative pressure on working capital.

Our role is not only to design and install your system. Where required, we also support sourcing the most appropriate finance structure.

Finance Options

The three most common routes are:

Power Purchase Agreements (PPAs)

A Power Purchase Agreement allows you to install a solar system with no upfront cost. An investor funds the system and retains ownership during the agreement. You buy the generated electricity at a fixed rate that is lower than the cost of grid electricity.

Key points:

• No capital investment required
• Immediate reduction in electricity bills
• Fixed electricity price for the full term (typically around 25 years)
• System owned, monitored and maintained by the investor during the agreement
• Option at the end to extend, purchase the system, or have it removed
  
  This route is often well suited to organisations prioritising cashflow, price certainty and sustainability outcomes with minimal operational responsibility.

Find out more about PPAs.

Hire Purchase (Asset Finance)

Hire Purchase allows you to spread the cost of the system over a fixed term, typically five to seven years. A green finance provider funds the installation and you make regular repayments. You receive the benefit of the electricity generated from day one. When the final payment is made, ownership transfers to you.

Key points:

• No large upfront payment
• System becomes your asset at the end of the finance term
• Electricity savings can be higher than repayments, resulting in positive cashflow
• Servicing and maintenance often included during the repayment period (check agreement details)
• After ownership transfers, only routine maintenance costs remain
  
  This option suits organisations that want full ownership and long-term savings but prefer to spread the capital cost.

Find out more about Hire Purchase finance.

Capital Expenditure (Capex)

Capex is the most straightforward route. You fund the system yourself, using either internal capital or a standard bank loan. You own the system outright from the start and receive all the financial and tax benefits associated with ownership.

Key points:

• Highest long-term return
• Full control of the system
• Eligible for tax reliefs and incentives where applicable
• Requires upfront expenditure
• Responsibility for servicing and maintenance lies with you
  
  This is typically the most cost-effective route over the system lifetime.

Find out more about Capex installation.

Buildings You Do Not Own

If you lease your premises, solar is still possible. A PPA can be structured so that the investor funds, owns and maintains the system. The landlord grants permission for the roof space, and you purchase the electricity at a reduced rate. Agreements can be transferred if the building changes tenant or ownership.

This creates a practical route to reduce electricity costs and support sustainability targets without owning the property.

The Cost of Doing Nothing

Electricity prices remain volatile, and grid costs continue to rise. Delaying investment in energy efficiency typically results in higher ongoing energy expenditure. In many cases, inaction is measurably more expensive than installing solar.