Finance for Commercial Solar
Our main activity is finding the funds you need to finance your project. We generally arrange this from other lenders and occasionally lend ourselves through GreenHearth Capital
Identifying Grants
The first thing we do is try to reduce your funding requirement by helping you identify any grants that may be available to support the project. See our detailed guide to grants for more information
Other sources of finance
You can always fund some or all of the project using your own cash or borrowing from your existing bank. We will prepare analysis estimating the breakeven period should you fund the installation with your own money and showing the total savings with and without financing from us or another lender so you can compare the different approaches.
Borrowing to fund commercial solar
Borrowing money to fund part or all of your scheme can be done using a range of structures. We currently offer:
Hire Purchase Financing
The Hire Purchase agreements we arrange are generally for a term of seven years or more and have a fixed level of monthly repayments and a nominal fee associated with the option to purchase. Under these agreements you select the equipment and the installer, and the we will buy the equipment once it is installed.
A hire purchase agreement is a lease which includes an option to purchase the assets for at a nominal sum at the end of the hire period.
This structure effectively transfers the risks and rewards of ownership to you on the day the agreement is entered into and is treated by HMRC as a purchase in so far as capital allowances can usually be claimed by you on the whole value of the system when the agreement is signed.
Finance Leases
The Finance leases we arrange are similar to the Hire Purchase agreements with a term of seven years or more and a fixed level of monthly repayments. At the end of the finance lease the assets will revert to the lessor but most agreements will allow the borrower to continue to lease the equipment in perpetuity for the payment of a fee. Under these agreements you select the equipment and the installer, and the financier will buy the equipment on your behalf.
A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. There may or may not be an option to purchase. If there is an option to purchase then the lease is a Hire Purchase Agreement.
Generally, most Finance Leases for Solar systems will be classified by HMRC as “Long Funding Leases” and so the tax treatment of the arrangement will be analogous to the treatment of a financing instrument or a Hire Purchase agreement taken out for the same period.
Terms and Conditions
The terms of conditions of each funding type depend on your system, the lender and you. To discuss the availability of funding and likely pricing for your project (or any other aspect of installing a commercial solar system) please contact us: