Commercial solar installations present large upfront costs. From companies looking to offer finance to their customers, to businesses looking to finance their own solar installation, here’s a guide to help simplify commercial solar financing.
What Finance is Available For Commercial Solar?
Solar Leasing
Under a solar lease, your business will rent the solar equipment for a fixed monthly repayment figure, typically over 3-7 years. The ownership of the equipment remains with the leasing company, however in some agreements you will have the option to purchase the equipment at the end of the agreement.
Asset Finance
You use the solar equipment itself as collateral for the loan, and you spread the large cost of purchasing the equipment up front over monthly repayments. Asset finance is the most affordable route if you wish to eventually own the equipment.
Vendor Finance
We work with solar providers to allow them to propose finance to their customers. Vendor finance allows solar providers to offer an array of financial facilities, from leasing to asset finance.
Green Business Loans
We work with a number of green lenders and finance houses who are committed to renewable energy projects. From the source of the funds to their deployment, the funds are transparent.
Information We Require
Your Energy Usage
We need to know your energy usage in order to calculate the potential energy bill savings that solar installations present to your business. This will allow you to budget accordingly in order to make the repayments for the solar finance.
Your Energy Costs
Your energy costs are needed in order for us to calculate the return on investment with your solar installation. Once we know how much you spend, we are able to accurately predict how much your energy will cost with solar installed, and the potential returns on investment you could realise through selling excess energy back to the grid.
Approved Suppliers List
We work exclusively with approved solar panel manufacturers – upon applying for finance we will inform you of your choices of manufacturer.
Repayment Ability
Does your business currently generate enough cash flow in order to service the loan repayments? Or, are there expansion plans which will allow you to generate adequate cash flow in order to make these repayments?
Security
Sometimes security can be a requirement to act as collateral for the finance. This can be in two forms – assets that the business owns, or personal guarantees from the business owner as the borrower. Sometimes, it may be necessary to put up both as security for the loan, depending on your circumstances.
How Mill Wood Can Help
Curated process
The information we collect about your organisation helps us to build a business case to present to lenders. A business case helps us and our panel to understand your business in as much detail as possible. The more informed we are, the more likely we will be successful.
Committed guidance throughout your application
We ensure you have everything in place to give you the best chance for approval. We deeply understand our market.
Post-finance care
Working with Mill Wood doesn’t end at deal approval. We are on hand to help you throughout the course of your finance. Feel free to give us a call at any time during the process if you have any questions.
Our intimate relationships with our panel of lenders allows us to negotiate favourable terms on your behalf, and to access funding structures and products which may not be available to every brokerage. We take pride in our longstanding friendships with our lenders.
Post-finance care: Working with Mill Wood doesn’t end at deal approval. We are on hand to help you throughout the course of your finance. Feel free to give us a call/email at any time during the process if you have any questions.
Final Thoughts
Solar panel installation is a significant undertaking for any business. With many funding options available in the UK market, the key is to choose a structure that matches your financial capability and suits the nature of your business.
If you’re considering a commercial solar installation and would like an expert to guide you through your funding, contact Mill Wood here. Our dedicated brokers will help you navigate your options and find suitable finance tailored to your requirements.
