Best commercial solar financing options

For Your Commercial Business

Explore the Best Commercial Solar Financing Options in the UK, where businesses cut electricity bills by 30-50%. Solar systems offer dual benefits: reducing environmental impact and operational costs. Uncover key financing options—Power Purchase Agreements, Solar Leases, and Loans—to tailor your solar investment. 

Apply For Solar Quote 

Find out today if your business qualifies for commercial solar panel funding to help the UK hit net zero

Let us Help find the best commercial Solar Financing Option

1

Submit Details & Energy Bill

Submit your business details and a recent copy of your Energy bill so we have a firm understanding for your solar power requirements

2

Receive Full Solar Quote

Once you have submitted your details one of our solar advisors will contact you to go through the commercial solar options for your business such as, solar PPA and a capex solar quote

3

Make a decision

now its up to you to decide weather you want to move word with commercial solar finance

Best Solar Panel Financing Options

Here Are our top 4 best solar panel financing options we would recommend researching in 2023/2024.
Have a read through and determine what is the best solar options for your business

Solar Panel Lease

Find solar lease companies and learn more about leasing solar for your business.

Commercial Solar PPA

Current Best Commercial Financing Option

Harness the power of the sun and significantly reduce your electricity bills with commercial solar PPAs (power purchase agreements) – a key component of commercial solar finance solutions. These agreements allow businesses to purchase solar energy from a third-party provider at a fixed price, typically 30-50% lower than traditional utility rates. With no upfront costs and long-term price stability, commercial solar PPAs offer a hassle-free and cost-effective solution to power your business sustainably. Embrace the future of energy and reap the financial and environmental benefits of commercial solar finance today.

solar finance for businesses solar ppa

Commercial Solar Loans

Take control of your energy costs and secure your business’s future with commercial solar loans. These financing solutions allow you to own your solar system and benefit from 30-40 years of free energy production, all while paying for the system in as little as 10 years. With competitive interest rates and long-term savings, commercial solar loans offer a strategic investment that enhances your business’s financial stability and environmental sustainability.

Commercial Solar Grants

Explore the potential of commercial solar grants to reduce the upfront costs of installing a solar system for your business and also tax incentives. While grant availability may vary over time, we are committed to staying informed about the latest funding opportunities and will promptly post them on our website.

Commercial Tailored Solar Quote

For your business

Harness the power of the sun with our tailored commercial solar solutions. Reduce your energy costs by up to 80%, improve your cash flow, and increase your property value. Contact us today for a free consultation and get a tailored solar quote for your business.

Growing demand for Commercial solar energy among businesses

Find the best solar funding option for your business

For commercial enterprises, solar panel systems are becoming an increasingly appealing and cost-effective way to power their facilities.

Finding the best commercial solar option at the right time can save a business thousands 

As solar grant operations for businesses can come and go each year, but if you catch one at the time your business could save £1,000s  to £10,000s  on energy costs

With many solar panel financing options available for businesses, businesses can make solar panel technology a part of their operations without breaking the bank or sacrificing quality.

As we lean more into the future with business energy costs rising commercial solar power system financing will become more popular in the UK as targets and goals need to be met by 2050 for Net 0 carbon emissions.

Why the growing demand for solar energy among businesses

Businesses are increasingly embracing solar energy due to its numerous benefits, including:

  1. Significant Cost Savings: Solar power offers substantial savings on energy bills, reducing operating expenses and enhancing profitability.

  2. Enhanced Energy Independence: Businesses can generate their own clean electricity, reducing reliance on the grid and mitigating the impact of rising energy prices.

  3. Reduced Carbon Footprint: Solar energy is a renewable and sustainable source of power, contributing to a company’s environmental goals and reducing its carbon footprint.

  4. Improved Brand Image: Embracing solar power demonstrates a company’s commitment to sustainability, enhancing its brand reputation and attracting eco-conscious customers and investors.

  5. Government Incentives and Support: Various government incentives and programs encourage businesses to adopt solar energy, making it a more financially attractive option.

  6. Long-Term Investment and Returns: Solar PV systems have a long lifespan which can be anywhere from 40 – 50 years depending on UK weather or if not correctly maintained, provide consistent energy savings and payback periods that can be as short as five to seven years.

  7. Low Maintenance Requirements: Solar PV systems require minimal maintenance, reducing ongoing costs and ensuring long-term performance.

  8. Diversification of Energy Sources: Solar power complements existing energy sources, enhancing energy security and resilience in the face of potential grid disruptions.

Google Trends Data

On “Commercial solar panels”

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Google Trends Data

Factors to Consider - Commercial Solar Financing Options:

  • Energy Consumption Patterns: Analyze your historical energy usage patterns to determine the size and capacity of the solar PV system required to meet your energy needs.

  • Available Roof Space: Assess the available roof space on your commercial property to ensure it can accommodate the necessary solar panels.

  • Budget Constraints: Evaluate your financial resources and determine the upfront costs and ongoing expenses associated with each financing option.

  • Long-Term Business Goals: Consider your long-term business objectives and align your financing choice with your overall sustainability and financial strategies.

  • Research available tax incentives and rebates offered for commercial solar installations. These benefits can significantly reduce the upfront costs and improve the overall financial viability of the project.

    • Research the reputation and experience of both the solar installer and the financing provider. Check online reviews, ask for referrals, and ensure they are licensed and insured.

    • Inquire about the warranties and guarantees offered for the solar panels, installation, and financing terms. Understand the coverage, terms, and conditions of these protections.

    • Clarify the maintenance and repair options available under the financing agreement. Determine who is responsible for maintenance, repairs, and potential replacements.

    • Assess the flexibility and scalability of the financing option. Consider your future energy needs and whether the system can be expanded or modified as your business grows.

FAQ

Q: How can I find a reputable commercial solar installer and financing provider?

A: It is important to research and find a reputable commercial solar installer and financing provider. You can ask for referrals from other businesses, check online reviews, and make sure the companies are licensed and insured.

Q: Can I get a solar loan if my business has bad credit?

A: Yes, there are a number of commercial solar lenders that offer loans to businesses with bad credit. However, the interest rates on these loans may be higher.

Q: What is the average payback period for a commercial solar system?

A: The payback period for a commercial solar system varies depending on the size and type of system, the upfront cost, the business’s electricity rates, and the availability of government incentives. However, the average payback period is typically between 5 and 10 years.

Q: Can I sell my excess solar energy back to the grid?

A: Many utility companies offer net metering, which allows you to sell excess solar energy back to the grid at a fixed price per kWh. This can help to further offset your electricity costs.

Q: What is the maintenance required for a commercial solar system?

A: Commercial solar systems require minimal maintenance. However, it is important to have the system inspected and cleaned regularly to ensure optimal performance.

Here we have compiled solar financing options that your business can view and look to investigate further on securing solar power for your company and save on electricity costs.

Leasing business solar panels

solar leases for businesses allow you to pay for solar panels over time, just as they would a normal lease agreement.

Installing solar panels is an economical choice for businesses, as the system comes at no cost and monthly payments are often lower than what a loan would offer.

Plus, these contracts usually include maintenance services to ensure your panels keep working optimally! Leasing solar energy provides great benefits if you’re looking to save money and still benefit from renewable sources of power.

who offers solar panel leases for businesses?

Here’s an example of how a solar lease works:

  1. A savvy business owner committed to sustainable energy is looking for a way to transition their company into solar power but lacks the funds necessary for the purchase and installation of new panels.
  2. The business owner reaches out to a respected solar company and expresses their enthusiasm for the possibility of leasing solar panels.
  3. The solar company arrives onsite to conduct an evaluation in order to decide how many solar panels are required for the business’s energy requirements.
  4. For a hassle-free experience, the solar company provides one monthly quote that includes the cost of installing and maintaining your solar panels.
  5. After thoroughly reviewing the terms of the lease, the business owner happily signs a contract with their chosen solar company.
  6. The solar company takes on the responsibility of installing and operating the business’s solar panels, providing reliable monitoring and upkeep.
  7. The business owner makes a monthly payment to the solar company in exchange for the electricity produced by their panels.
  8. After the lease period concludes, companies have three options: renew their solar panel lease, buy them outright, or remove them entirely.

 

Solar Lease Savings

Unencumbered by the heavy cost of traditional electricity from local utility companies, businesses can witness significant savings through a solar lease agreement.

Before Solar Lease:

Let’s suppose a business owner pays an average of £0.15 per kWh for electricity from their local utility company, totalling around £10,000 every year.

After Solar Lease:

By signing up for a solar lease, business owners can now generate 10,000 kWh of electricity annually with the help of an efficient and reliable solar panel system.

The monthly fee to lease the solar panel system is a mere £200 and you don’t even have to pay anything upfront for installation or upkeep!

As a consequence of the solar lease, the business owner now pays an annual sum of £2,400–including the regular leasing fee and any potential incongruities in electricity rates from their local power supplier.

Compared with the past electricity cost of £10,000 a year, this solution results in annual savings amounting to £7,600!

Every month, the business proprietor pays £200 for their lease in addition to an estimated £100 towards any electrical costs increases – making a grand total of £300.

Providing an astonishing £700 per month in savings, our monthly electricity cost has dropped from a staggering £1,000 to the current rate.

To sum it up, solar leasing can be a great way to save tons on energy bills without any initial investment and with an easily predictable monthly fee.

By cutting energy expenses, the business owner can not only secure greater profits but also reinvest in other areas of their venture.

 

Pros of Solar Leasing for a Business:

  1. Solar leasing is a cost-effective choice for businesses because it eliminates the substantial upfront investment that would be necessary to buy panels.
  2. Leasing solar panels offers a steady energy rate, allowing businesses to budget and plan strategically. This reliable source of energy can ultimately reduce financial uncertainty for companies.
  3. Abolish any maintenance worries – the leasing company takes care of panel upkeep, providing businesses with time and financial savings.
  4. For companies looking to upgrade their panels or switch to a different system, leasing is the optimal choice! Not only does it provide an easy and hassle-free option but the company will take care of all of the paperwork for you.

 

Cons of Solar Leasing for a Business:

  1. Lack of autonomy: A business may not possess the authority to alter or upgrade the panels and energy production, resulting in a limited capacity for changes.
  2. Solar leases tend to be binding for extended periods of time, which may restrict a business’s ability to adapt and explore choices further down the line.
  3. Although solar leases may offer a fixed energy rate, there is an inherent risk of escalating bills over time, which can be detrimental to the financial health of any business.
  4. Without ownership, a business is missing out on the financial benefits of having its own solar panel system. This means no tax credits or rebates that would have otherwise been available with ownership.

Power purchase agreements (PPA solar funding)

  1. Assessment: When a solar developer visits the client’s property, they will assess their energy requirements and potential for an optimal solar panel installation.
  2. Upon a successful assessment, the developer shall be responsible for paying all fees associated with installing solar panels on your business property – from equipment to labour.
  3. Electricity Generation: Once the solar panels are set up, they begin to generate energy immediately and can be put to use by your company. Unlike other power-generating methods, you only have to pay for what is consumed instead of buying the panels in one go.
  4. By joining forces with the developer, your company will be able to finalize a rate for energy produced by the panels which is usually much lower than what you’re currently paying. This presents an economic opportunity that should not be overlooked!
  5. The developer handles all maintenance and upkeep of the panels, so you don’t have to worry about repair costs or other expenditures. You can rest assured that your business operations will run smoothly without any unanticipated expenses.
  6. Energy Consumption: The company will be making energy purchases from solar panels, lasting a minimum of 15-20 years, through the Power Purchase Agreement.

 

 

PPA (Power purchase agreement) Savings

A warehousing firm has embraced a Power Purchase Agreement (PPA) with an experienced solar developer, allowing them to capitalize on the cost savings of solar-generated electricity for their facility.

 

The warehousing company had previously been paying £0.12 per kilowatt-hour (kWh) for electricity from the grid.

 

Pursuant to the Power Purchase Agreement (PPA), the manufacturing firm will unlock significant savings by purchasing solar-generated electricity at a cost of £0.10 per kWh.

 

With the PPA in place, the company’s annual electricity expenditure has been reduced from £240,000 to a tremendous saving of £200,000 – all thanks to its usage of 2 million kWh per year.

 

By leveraging this strategy, the manufacturing company can realize an annual savings of £40,000. This income can be reinvested back into their business to drive growth and gain increased profits as well as enhance operations.

 

Before PPA:

  • The warehouse was paying £0.12 per kilowatt-hour (kWh) for electricity from the grid.
  • An annual expenditure of £240,000 on electricity was incurred due to their use of 2 million kWh annually.

After PPA:

  • By entering into a Power Purchase Agreement with an established solar energy developer, the company has secured access to electricity generated by solar power at only £0.10 per kWh!
  • By consuming two million kWh of electricity annually, their energy costs have been slashed to a staggering £200,000 per year.

Savings:

  • By entering into a Power Purchase Agreement (PPA), the company can save £40,000 annually by purchasing electricity at an advantageous cost.

 

Pros for solar PPA:

– Zero upfront solar panel installation costs

– Fixed solar energy rates for the duration of the agreement

– No additional maintenance expenses on solar panels

– A high return on investment (ROI)

– Reduced greenhouse gas emissions

 

Cons of solar PPA:

– Short-term contracts with solar power companies compared to other financing options

– Risk of solar panel failure

– Limitations on the location of solar installation

Solar Panel Government Grants

In addition to solar panel financing options, businesses may also be eligible for solar power grants provided by the government.

 

Government solar panel grants can help to offset solar panel installation costs, reduce long-term solar energy expenses and make solar power more accessible to businesses.

 

Also with most Government Solar grants you won’t have to pay anything back as it is a grant and not a type of solar finance however solar grants by the government can change from month to month and maybe not be available right now

 

Find out now if the UK Government has any solar grants open.

 

Example of how a Government solar grant would work:

UK-based ABC Ltd. is an industry leader in the production of sustainable, earth-friendly goods and has always been mindful of minimizing its environmental impact.

In order to take full advantage of the government’s solar grant, our company has determined that installing a solar panel system in our factory is the optimal choice.

 

The process of obtaining the grant involved the following steps:

 

  1. Research: ABC Ltd. researched the different government grants available for renewable energy projects and determined that the solar grant was the best fit for its needs.
  2. Application: The company then submitted an application for the grant, which included details about its energy consumption, the planned solar panel system, and the expected savings.
  3. Approval: After several weeks, the company received approval for the grant and was awarded a sum of £50,000 to cover the cost of the solar panel system.
  4. Installation: ABC Ltd. then contracted a solar panel installation company to install the system, using the grant funds to cover the cost.
  5. Operation: After the installation was complete, the company began to generate its own electricity using the solar panels, reducing its dependence on the grid and lowering its energy bills.

 

By utilizing the government solar grant, ABC Ltd.

was able to reduce its carbon emissions, maximize energy efficiency, and lower electricity bills—all while gaining beneficial publicity from its financial commitment to renewable energy sources.

In order to take full advantage of the government’s solar grant, our company has determined that installing a solar panel system in our factory is the optimal choice.

 

 

Solar panel Loans

Another solar panel financing option that businesses can choose is solar loans. This strategy involves taking out a loan to cover the solar panel installation costs and then paying back the loan in monthly instalments.

The advantage of getting solar loans is that it shortens your return on investment (ROI) period substantially when compared to other solar financing solutions. Your solar panel installation payments can be lower than your current electricity bills, allowing you to save money in the long run.

Here is an example of how a solar loan works:

To demonstrate the efficacy of a solar loan from a local bank, we will assess and evaluate an example of a nursing home located in the United Kingdom that has opted-in for this type of solar financing option.

Loan Details:

  • Loan Amount: £30,000 (for solar power system and installation)
  • Interest Rate: 6% p.a. (Annual Percentage Rate)
  • Loan Term: 10 years (120 months)
  • Repayment Method: Equal monthly instalments

Loan Breakdown:

  • Monthly Repayment Amount: £333.33 (approximately)
  • Total Repayment Amount: £40,000 (approximately)
  • Total Interest Paid: £10,000 (approximately)

Loan Calculation:

  • Monthly Repayment = Loan Amount * (Interest Rate / 12) / (1 – (1 + (Interest Rate / 12))^(-Loan Term in months))
  • In this case, Monthly Repayment = £30,000 * (6 / 12) / (1 – (1 + (6 / 12))^(-120)) = £333.33 (approximately)

Shorter break-down

Loan Amount: £30,000

Interest Rate: 6% p.a.

Loan Term: 10 years (120 months)

Monthly Repayment: £333.33 (approximately)

Total Repayment: £40,000 (approximately)

Total Interest Paid: £10,000 (approximately)

Solar Loan Pro:

– Low solar panel installation costs

– Shorter return on investment (ROI) period

– Lower solar energy bills compared to non-solar energy bills

Solar Loan Con:

– Repayment of solar loan and interest over a period of 10 years

– Need to have a good credit score to be eligible for a solar loan

– Risk of solar panel failure

 

Conclusion

Solar panel financing options for businesses come in various forms such as solar grants, solar loans, and solar leasing.

While solar grants provide free money to pay for solar panel installation, solar loans allow businesses to pay for solar panels over a period of time.

Solar leasing, however, can be less cost-effective than solar loans and solar grants. By weighing the pros and cons of each option, businesses can decide which solar financing strategy is right for them.

solar panel financing options can help businesses save money while also promoting environmental sustainability.

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