The Future of Green Energy Finance: Financing Solar Panels, Wind Turbines, and More
As Europe and the UK move closer to their goal of Net Zero carbon emissions by 2050, businesses of all sizes – and across all sectors – are faced with a growing impetus on sustainability.
Whether by amending operating practices to be more sustainable, adopting sources of renewable energy, or changing supply chains, companies across the continent are taking an active stance when it comes to their impact on the environment.
However, making such changes can be expensive. The initial outlay for green new technology or power sources can be daunting, particularly in the present economic climate.
At Anglo Scottish, we offer a wide range of green energy finance options to support with green initiatives and renewable energy projects. With finance available for solar panels, heat pumps, wind turbines and other renewable energy projects, your business can spread the cost and improve sustainability standards without compromising your cash flow.
Need help? Call us on 0191 410 4776
Understanding Green Energy Finance
The right way to become sustainable will vary from business to business – but everyone has areas for improvement.
Investing in renewable energy projects has a myriad of potential benefits, such as reduced carbon emissions, long-term cost savings, and an improved public perception.
The modern consumer expects companies to be “doing their part” to help combat climate change – failure to do so could result in your business’s offering being overlooked in favour of greener alternatives.
There are a number of funding options available for businesses looking to access green energy finance. However, just 7% of the big banks’ energy finance allocation is used for renewables projects.
Government incentives, such as the Non-Domestic Renewable Heat Incentive (NDRHI) have helped provide financial support for businesses looking to access renewable energy. However, the application window for this scheme has now closed.
Third-party funders and private investors therefore constitute a vital part of the funding market for green energy initiatives like wind turbine finance, solar panel finance or heat pump finance.
Accessing green energy finance from a responsible source is crucial – and that’s where we come in.
Solar panel finance
Solar panel finance is commonly used by businesses looking to increase the amount of energy they use which is from renewable sources. By using solar panels to provide all – or part – of your company’s energy, you could enjoy significant savings on your energy bills.
At Anglo Scottish, we have various green finance arrangements available, should you want to use solar panels to increase your business’s sustainability credentials.
There may also be government grants and subsidies available to you to help support with the cost of your solar panels. Almost £5bn of funding is available to UK businesses. You can find a list of the available schemes – and check your company’s eligibility – via the GOV.UK website.
The eligibility criteria and application processes for government green energy finance schemes will vary depending on which scheme is active at a given time.
If you are unsure whether your business is eligible for government finance, we may be able to put you in contact with someone who can help support your application.
Wind turbine finance
Wind turbines are another prominent source of renewable energy. Wind power projects are typically larger in scope than solar panels, due to the area, labour, and materials required to build a wind farm.
While the initial investment can be daunting, the long-term profitability and stable returns make wind turbine finance lucrative for rural or sea-based businesses wanting to reduce their carbon emissions without compromising on their cash flow.
The process for creating a wind farm is more complicated than using solar panels, particularly if you’re developing a completely new site. Project development costs must be accounted for, as well as equipment procurement, installation, and maintenance once installed.
External investment – from an investor, bank, or trustworthy third-party funder – can help make the cost of such a project more manageable.
We offer a wide range of renewable energy finance options for green and sustainable initiatives.
Risk assessment and mitigation strategies
Any business looking to access wind turbine finance should be aware of any potential risks associated with wind energy investments. The planning permission required for such a project provides a stumbling block that companies should be aware of.
Investing in insurance and a dedicated maintenance team can help mitigate some of the risks associated with a wind farm through both the construction and upkeep stages of the project.
At Anglo, our Renewables Specialists are on hand to connect you with the right wind turbine finance for you and advise through some of the issues you’re likely to face during the process.
Heat Pump Finance
Heat pumps are a renewable alternative to traditional gas or oil boilers which source the energy to heat your home or business from its surroundings.
Heat pumps are about four times more efficient than gas or oil boilers – making them a lucrative and sustainable alternative. Different types of heat pumps include air source (which draws energy from the ambient air), ground source (which draws energy from the ground), and water source (which draws energy from nearby water sources).
The substantial initial outlay often acts as a deterrent for businesses looking to modernise their energy source. Heat pump finance is therefore incredibly useful to spread the cost of heat pump installation.
For most businesses, heat pumps can yield long-term return on investment due to reduced energy bills and maintenance costs. And, there may be government incentives, tax credits, and rebates available for adopting energy-efficient technology like heat pumps.
We offer a wide range of renewable energy financing options which are suitable for heat pumps and other forms of green energy alike.
Choosing the right renewable financing option
At Anglo Scottish, we offer a range of different financing agreements, each of which have their own associated set of benefits. We’ll work with you to establish which green energy initiative you’re looking to pursue and find out which of our many specialist funding options is right for you.
Hire purchase is often used to spread the cost of your green investment. With this form of asset finance, you’ll pay an initial deposit to get access to your solar panels, wind turbines or heat pumps.
This is followed by monthly payments until you’ve paid the remaining outstanding balance. At the end of the agreement, you’ll own the assets.
Power purchase agreement
A power purchase agreement (PPA) is a long-term contract, in which the power purchaser buys energy at a pre-negotiated price. This type of arrangement is commonly used for the financing of independently-owned electricity generation projects, like solar or wind farms.
If your business wants to make use of renewable energy sources but does not want to own the asset, a lease agreement may be more suitable for you. A finance lease or operating lease may be suitable for smaller-scale renewable energy projects, such as temporary solar panel installations.
At the end of a lease agreement, the asset will be returned to the funder.
Finance at Anglo Scottish
Thanks to our panel of funders, we can offer enhanced lending terms or benefits that may not be available elsewhere. These include:
- 10-year terms,
- VAT-only deposits,
- VAT deferrals,
- Stage payments and more.
We can also provide unique funding arrangements for Energy Service Companies (ESCOs) for assets, projects, suppliers, growth, and more. This extends to financing for electric vehicle (EV) charging points.
Selecting the right financing for your green energy projects can be challenging – you’ll need to find a reputable third-party funder which can provide the right repayment terms to suit your business’s needs and goals.
That’s where Anglo Scottish comes in – with our unique portfolio of over 70 funders, we pride ourselves on the ability to find the right finance for you.
HOW IT WORKS
Decide on the asset you need to help your business grow.
Talk to us, tell us about your business and the asset you wish to acquire.
We will reach out to our panel of lenders on your behalf to gain approval.
Sign your document, once approved we’ll send you your documents to sign. After which we will transfer payment to your asset supplier.
We’ll do a final check to make sure everything is running smoothly, and you can start reaping the benefits of your new asset.
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Frequently Asked Questions
What are green energy credits?
Companies in the US may be eligible for Renewable Energy Credits (RECs), which rewards businesses for generating renewable electricity and sending it to the national grid. Such a scheme is not in place in the UK, but you may be eligible for other business incentives.
Can you finance a heat pump?
Yes – we have a range of finance agreements which are suitable for heat pump finance and allow you to own the heat pump once the balance has been repaid.
How do I finance a heat pump?
If you’re unsure about the right finance you require, our team of experts are on hand to help.
Is green energy a good investment?
Green energy is an exciting sector and can be a lucrative area to invest in. Not every investment in green energy is a good one, though, financially speaking.
However, the right investment, backed by the right finance agreement, can yield fantastic returns for your business.
If you’re looking for ways to help your business improve its sustainability credentials, green finance could be a great way to do so. Minimising your impact on the environment isn’t just good for the planet – it’s good for your bottom line, too.
Charlotte Enright is our in-house Renewables Specialist, and is on hand to answer any questions you might have about the right form of renewable energy finance for you.
Need help? Call us on 0191 410 4776