Financing & Grants
payment planning
Financing and grants for renewable energy
The upfront cost of a renewable energy installation doesn't have to be a barrier. The UK market now offers a wide range of financing structures and government-backed incentives - from outright purchase and green loans to Power Purchase Agreements, asset finance, and direct grants.
We help businesses identify the most appropriate funding route for their situation and factor it into the project plan from the outset. The right financing structure can significantly improve the financial case and reduce the time to payback.
government grants and incentive schemes
Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme provides grants towards the cost of replacing fossil fuel heating systems with low-carbon alternatives. The scheme is currently available, with the stated end date of 2030:
- Air source heat pumps - £7,500
- Ground source heat pumps - £7,500
- Air to air heat pumps - £2,500
- Biomass boilers - £5,000
- Oil or LPG boiler replacement (targeted grant) - £9,000
Smart Export Guarantee
The Smart Export Guarantee allows owners of eligible renewable electricity systems to receive payment for surplus electricity exported to the national grid. Eligible technologies include solar PV, wind, micro-CHP, and hydro systems. Rates vary between energy suppliers.
Local authority and regional funding
Many councils periodically offer decarbonisation grants, business sustainability grants, and energy efficiency programmes. Availability varies by region and funding cycle - we can help identify what may be available in your area at the time of your project.
Finance options for businesses
Capital purchase
Purchasing outright using available capital delivers the maximum long-term return - full asset ownership from day one, no interest charges, and the full benefit of energy savings and export income. Best suited to businesses with available capital expenditure budgets.
Green loans & sustainability finance
Many lenders now offer dedicated green loan products for renewable energy projects, with fixed monthly repayments over terms typically ranging from 3 to 15 years. Energy savings can partially offset repayments, and capital reserves are preserved for other business needs.
Asset finance
Asset finance allows businesses to spread the cost of renewable energy equipment over its useful life through hire purchase, finance lease, or operating lease arrangements. Lower upfront costs, fixed monthly payments, and potential tax advantages make this a practical option for SMEs, industrial businesses, and agricultural enterprises.
Power Purchase Agreements (PPA)
A PPA allows a business to benefit from on-site solar generation without owning the equipment. A third-party investor funds, installs, and maintains the system - the business purchases the electricity generated at an agreed rate, typically below grid prices, with no capital outlay required. Well-suited to warehouses, manufacturing facilities, schools, and commercial properties with large roof areas.
Solar leasing
Similar to a PPA, solar leasing provides access to renewable energy equipment through a fixed monthly rental. No large upfront investment, predictable costs, and maintenance is often included. Long-term contracts and lower overall financial return compared to ownership are the key considerations.
Energy Performance Contracts
Commonly used in larger commercial and public sector projects, an Energy Performance Contract involves an energy services company (ESCO) funding and delivering the project, with repayments linked to guaranteed energy savings. Performance risk is typically shared with the provider. Well-suited to local authorities, universities, NHS organisations, and large commercial estates.
Community and cooperative funding
For larger projects or community energy initiatives, funding can be structured through community share offers, cooperative investment, or social impact funds - sharing financial risk and delivering local economic benefits alongside net-zero objectives.
finance structure
Choosing the right option
The most suitable financing structure depends on your available capital, ownership preferences, risk appetite, and long-term energy strategy.
| Objective | Suitable finance option |
|---|---|
| Maximum long-term return | Capital purchase |
| No upfront cost | PPA or lease |
| Preserve cash flow | Asset finance or green loan |
| Heat pump installation | Boiler Upgrade Scheme + loan or self-funding |
| Commercial rooftop solar | Asset finance or PPA |
| Public sector decarbonisation | Energy Performance Contract |
| Community-led project | Cooperative or community funding |
practical energy solutions
How we can help
Understanding the financing landscape is one thing - identifying the right option for your specific project and navigating the application process is another. We help businesses work through the options at the start of every project, so financing is factored into the recommendation from day one rather than treated as an afterthought.