4 October 2014

Green Energy Finance

Green Energy FinanceGreen Energy Finance

Many businesses are now taking a closer look at how they generate and pay for their energy. Biomass boilers, solar panels and other carbon reduction schemes are fast becoming a more attractive option for companies.

The growth in government schemes aimed at supporting businesses wanting to go green is generating even greater interest.

The Barrier For Business

The biggest barrier is with the upfront or capital outlay required to install new green energy systems.

There are financial incentives for corporations that decide to generate their own power, however the capital cost remains the biggest barrier.

The Eco-Experts quote the following as an example of one Government scheme available to encourage greater take up of green energy and self supply of energy;

…the Renewable Heat Incentive (RHI) can help with the large costs associated with becoming more environmentally friendly. As private and public organisations contribute 38% of carbon emissions in the UK, this Government funded cash incentive was put into place in 2011 to provide support and encourage businesses to do their part for the planet. Under the scheme, business can claim payments from the Government for 20 years and can expect approximately a 12% return per annum…

All this means that there are benefits for businesses that want to take up new green energy options. The biggest issue remains the capital cost of new systems.

Funding For Energy

Biomass boilers can cost from £12k to £400k for the biomass boiler, this is before the cost of pellets and maintenance is taken into account. Clearly the first year capital outlay is significant.

A similar issue applies to solar panels. The year one cost is significant. There are various grants and support available although this differs depending on size of your company, domestic or commercial use, location and many other points. All these do not change the fact that most businesses would like to cut their energy costs, but the capital outlay is too prohibitive.

The good news is that Lime Consultancy have some bespoke solar energy and biomass boiler finance packages.

Finance For Green Energy Systems

Whenever a new ‘asset’ exists in the marketplace it can take some time for leasing companies and finance providers to understand how the product works and what the residual value of the asset is. This means that financing things like biomass boilers and solar panels can be challenging.

The other prohibitive factor is that the affordability for the finance of these schemes comes from a future saving in energy costs. It is rare that a company can fully justify the funding for energy systems based on past financial performance.

This means that a proper understanding of how green energy systems work, and an understanding of the future cost saving to a business is essential.

Lime Consultancy have arrangements with several quality lenders who will finance the installation of commercial green energy systems.

Finance Options

Typically the type of finance best suited depends on a number of factors. It is not as easy as a one size fits all solution. It is for this reason that we have a range of funding alternatives, these include;

Depending on where your business is, how things are going, what you aim to save on energy spend and your own resources then we will find and guide you on the best funding solution for you.

We can offer funding options for both the business purchasing the green energy systems, and for the suppliers of these systems who want to offer a funding solution to their customers.

For more information then please contact us on 01293 541333 or via the website.

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