Asset Finance for Solar: Three Solid Examples of Success
Asset Finance is a solid funding mechanism many businesses use today. Read about three examples across different industries
What is Asset Finance?
Asset Finance is a financial arrangement that allows businesses to acquire solar energy systems without having to pay the total upfront cost. This helps companies spread out the cost of installing energy systems over time, while still receiving the full benefits of solar power. Unlike Power Purchase Agreements, buying solar energy with Asset Finance means that you own the asset, but it often requires a deposit, which is typically the VAT or 20%.
It’s considered a great option for purchasing solar panels, particularly when it comes to making the transition to renewable energy more accessible and financially manageable.
Asset finance suits a wide range of businesses, particularly those that want to reduce their energy costs without the upfront investment. The term of the asset finance agreement for solar typically depends on the type of finance, the size of the system, and the cash flow profile of the business.
What are the benefits of Asset Finance?
Asset Finance offers a variety of benefits for businesses that want to obtain solar without paying the full upfront cost.
Spreading the costs over a longer period improves the company’s cash flow and can result in more predictable energy costs.
Some companies can install a solar energy system via asset finance and end up cash positive from day one – if the monthly finance repayments (including interest) are lower than what they’re currently paying for electricity.
How can companies access Asset Finance?
To access asset finance funding options, Geo Green Power partners with reputable and established lenders like Anglo Scottish, a leading provider that offers best-in-class funding offers. This partnership provides customers with tailored finance options, enabling them to safely invest in energy assets without significant upfront capital.
Asset Finance for solar panels: Three solid case studies
Asset finance is a solid and practical vehicle to fund your solar system. Here we have highlighted three businesses that have benefited from an asset finance agreement to successfully fund their solar panel project, allowing them to invest in renewable energy without the need for upfront capital:
Example 1: Asset Finance for Farming
Sutton Farm, in Lancashire, installed a 405kWp solar system using the asset finance option. This allowed the farm to spread the cost of the panels over an agreed period, easing the initial financial cost while enabling it to transition to more sustainable energy sources. The move not only supports their commitment to environmental responsibility but also helps reduce long-term energy costs and increase overall efficiency in their farming operations.
Example 2: Asset Finance for Industrial Business
Hydro Technik Test Engineering is one of the UK’s leading test and measurement equipment distributors and has a range of clients globally. Despite already being very energy efficient, there was room to enhance these credentials further. Not only does it benefit the business taking on the solar, but it also continues to put them above other distributors by offering a product that comes from a green home and becoming a sustainable source and partner for potential new clients.
Example 3: Asset Finance for Car Dealerships
Car dealership SG Petch also used asset finance to complete their solar PV installation. Across multiple sites, the system generates 270,000kWh of electricity every year – enough to power 50 houses. The asset finance option was the best choice for the dealership, ensuring they save significantly on energy costs across their entire estate.
Asset finance is a reliable solar funding method for commercial enterprises. The flexibility means a package can be created to suit your needs, and the savings solar provides mean the financial investment is solid, stable, and sustainable.
