Access to Funding for Green Energy Projects

As a business, you’re probably well aware of the facts and benefits of going green. However, making the leap to a sustainable future isn’t exactly straightforward, especially where a large investment into your business is concerned. Unless you have funds readily available for your energy project, you must either delay the works, or explore alternative options.

Renewable energy

To help you get your renewable energy project off the ground as quickly and effortlessly as possible, here are a few avenues to funding for businesses thinking of investing in green energy.

Specialist loans

Energy investment loans are becoming increasingly accessible as a way to fund projects such as solar PV installations and biomass boilers. Whilst loans do come with interest rates, the savings (and in some cases, income) generated by renewable energy or efficient systems can far outweigh this cost.

What’s more, by agreeing a loan at a fixed rate over a set period, you can break down the cost into manageable monthly payments, to ensure that you can afford to fund your project.

Government grants and funding

As the government commits to sourcing 15% of energy from renewable sources by 2020, there are various funds and initiatives available to help businesses get on board with the push to go green. Whilst these schemes are constantly being updated, initiatives such as the Electricity Demand Reduction (EDR) scheme and Feed-In Tariff can reduce the cost and increase the ROI of your investment considerably.

A green energy consultancy can help you explore the types and amount of funding available, to see if it’s a viable option for your organisation. If you are eligible for funding, discounts or a tax-free income, they can also guide you through the application stages, to make the process a stress-free one.

Power purchase agreements (PPAs)

If you want to go green and reduce your energy bills, but you’re struggling to find a feasible funding option, a power purchase agreement (PPA) could be just what you’re looking for. These long-term contracts mean that your investor or energy supplier installs green energy systems – such as solar panels – on your property for free.

Whilst your investor will take advantage of any income generated by these renewable energy sources, you can benefit from sustainable, low cost energy for your business, without worrying about funding or maintenance. This is ideal for businesses taking a long view on their energy requirements, of approximately 10-20 years.

These are just a few ways in which alternative funding can kickstart your renewable energy project. Whether you’re an SME with rising energy costs or a UK-wide manufacturer needing to achieve compliance, loans, grants and PPAs can help you take advantage of renewable energy as soon as possible.

Not quite sure what option is best for your business? Consult a green energy specialist to get tailored advice on the funding available.

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