Funding Solar - Asset Finance

November 16, 2020

Renewable energy generation is capital intensive, and solar power is no different.

Fortunately, as the UK starts to transition towards Net Zero, there are several different ways of funding a solar power project for your business.

The article will look at one of the most popular methods – asset finance.

Asset finance allows a business to borrow the money for a solar panel installation with the funds secured against the asset that is being purchased – in this example, the solar panels and associated equipment.

Asset finance is attractive to many businesses as it allows them to leave their traditional security – such as property or land – unencumbered. It also lets businesses keep cash that they might have spent on a solar array in the bank for use on the core operation of the business.

An added benefit of asset finance is that it allows the business to pay for their system over time using the savings and income that it generates. This, in-turn, reduces the impact on cashflow that buying the system outright might have otherwise had.
 
There are an abundance of funders to choose from when considering asset finance – all with their own unique approaches. One lender, for example, will allow a business to fund their installation over a period of 10 years. This elongated funding term helps keep the annual repayments low enough that the income and savings from the solar array almost cover them completely.
 
BeBa Energy are funding-route agnostic – you will get the same high-quality installation irrespective of the chosen funding method.
 
For more information call BeBa today.