Funding

Funding, Finance, and Grants for Renewable Energy Solutions

FUNDING

Funding the migration to renewable energy 

Taking control of energy pricing

Businesses are increasingly migrating from fossil-fuels to generating their own energy on-site from renewable and sustainable sources in order to take control of their energy sourcing, consumption, and spending.

Switching to a greener cleaner energy solution provides businesses with long-term price certainty through fixed pricing and even an additional source of income from the sale of any surplus energy. 

Going Green also helps satiate the surging demand from other businesses, consumers, and governments to choose clean, renewable energy over the environmentally destructive effects of continued reliance on fossil fuels.

Covering the costs

Commissioning a suitable renewable energy solution comes at a cost – project design, purchase, installation, etc. 

Business owners may, by calculating their ROI date, choose to use their own capital to cover the cost of ‘going green’ by offsetting their investment against tax as a capital purchase.

For those businesses who prefer not to use their own capital to install renewable energy solutions, there are third-party funding [i] options available. We can help them fund their projects in such a way that the cost of any funding used is offset by the energy bill savings whilst still reducing annual energy costs during the project term.

We use the word ‘funding’ as a purely generic or general term for “using capital provided by third parties instead of the customer using their own capital to pay the project costs”.

Power Purchase Agreements

A Power Purchase Agreement (PPA) is a long-term contract under which the business agrees to purchase electricity directly from a renewable energy supplier. The supplier installs at its own cost the plant especially for this purpose, covering the costs of the hardware, software, installation, and maintenance, and manages the supply chain.

PPA’s provide a capital-free means to adopting renewable energy at scale sooner than might normally be possible.

PPA’s, therefore, help to deliver more renewable energy at lower, even fixed prices as well as reducing the businesses carbon footprint

 

Renewable Assets Finance

Renewable assets financing with a choice of fixed or variable terms and rates is available for;

  • Roof or ground-mounted solar panels
  • Combined heat and power
  • Waste heat recapture and cycling
  • Energy-from-waste (EFW) and Biomass boilers
  • LED lighting
  • Air and ground source heating

Depending on individual circumstances and the finance options used, businesses may be able to offset any payments for third-party financing against company profits and taxes as well as claim back against VAT.

Grants & Initiatives (UK)

To help meet the UK’s legally binding target of reaching net-zero emissions by 2050, depending on the business location there are several national and regional schemes in place to help with funding. UK national schemes include:

The Renewable Heat Incentive (RHI) scheme is for new and existing installations of heat-based technology such as air source and ground source heat pumps, CHP, etc has been extended to 2022.

For those businesses adding electric transport to the mix there are grants available to subsidize the cost of installing EV charging points and stations in the workplace as well as grants for purchasing new electric cars and vans.

How can we help you?

The whole subject of funding*, financing, grants, financial and tax planning is wide-ranging. This page is purposed solely as an introduction to these subjects and professional advice should be taken at all stages.

To learn more about how we can help you with your renewable energy projects please contact us. We have a number of subject matter experts who can answer your questions and help you move forward. You can:

 

Acknowledgments, Definitions, and Disclaimers

We use the word ‘funding’ as a purely generic or general term for “using capital provided by third parties instead of the customer using their own capital to pay the project costs”.

Potential tax reliefs referred to above apply to the legislation current when this page was published and are subject to change without notice.

The availability and value of any funding, finance, grants, or tax allowances/reliefs will depend on the financial position and circumstances of the customer. 

Pin It on Pinterest