Achieve your Net Zero ambitions through tried and tested finance options
During periods of economic turbulence the prospect of spending capital on new technology and making significant changes within a business can be daunting. However, with the current cost of energy at an all time high, investing in energy efficient technologies is an attractive prospect. For instances where capital expenditure is not an option, we’re put together a summary of finance options for funding energy efficiency measures:
Solar-PV and general onsite generation projects
Renewable energy is becoming increasingly attractive for lending organisations and investors depending on your overall credit position.
Asset finance: for smaller installations straight forward asset finance can provide simple solutions with controllable costs.
Purchase Power Agreement (PPA): A PPA is a financial arrangement where an investor (ie: pension fund) purchases, owns and maintains the technology and ‘sells’ your business the energy at an agreed price over an agreed time frame. Current (2022) PPA rates for solar are in the region of 8-14p/kWhr compared to grid costs of 30-40pkWhr.
Hire Purchase Agreement: This is a form of borrowing that is occasionally available through Solar-PV suppliers and enables your business to own the panels. Repayments are made over a number of years while making savings on the cost of electricity bills.
Regional initiatives: The industry is lacking in serious funding for LED Lighting projects and most businesses choose to purchase LED Lighting via an operating lease however it’s worth checking with your local council as there may be some regional initiatives available.
Operating Leases: These can vary in format from supplier to supplier but in essence cover the cost of the LED upgrade which would be paid back each moth or quarter at an agreed rate. Repayments would usually be designed to be smaller than the savings on electricity, so you receive a net saving each month.
Talk to us about supply chain offer with interest rates from 0%*:
Government grants: The main grant available for EV chargers is the Workplace Charging Scheme (WCS) which is £350 per charger. The application is very straightforward but it’s important to be mindful that they are only applicable for companies that are installing chargers solely for their staff to use, and also are not planning on charging their staff to use.
How we can help
We aim to strike the right balance of finding the right finance option for your business and helping you to achieve your Net Zero ambitions. As an independent consultancy we are regulated by the financial conducts authority (FCA) and only work with carefully selected supply chain partners. We’ve partnered with a number of finance specialists who understand your specific requirements and will go through the pros and cons of each finance option and assess which is the right one for your business.