The Government has committed to a target of an 80% reduction in greenhouse gas emissions by 2050 as part of its efforts to address climate change. PMD Business Finance is here to support businesses in meeting the challenge of reducing their carbon footprint through investments in renewable energy technologies and sustainable energy.
Whether you require funds for acquiring or installing new equipment, restructuring existing debt, or refinancing to secure additional working capital, our team of experts is ready to assist you.
We can help you discover cost-effective solutions to finance the equipment you need, offering tailor-made packages such as hire purchase, finance lease, operating lease, asset refinance and more.
What is renewable energy?
Often referred to as clean energy, renewable energy is energy that comes from a source that won’t ever deplete. They’re known to be natural and self-replenishing, as well as having low or zero carbon footprint.
Some examples of renewable energy sources include solar power, wind power, hydroelectric, tidal energy and bioenergy.
What is renewable energy finance?
Some of the most common types of renewable energy technologies for businesses are wind turbines, solar panels, electric vehicle charging points, biomass boilers and ground source heat pumps. Whilst investing in renewables can save businesses money in the long term, the initial equipment needed for green energy projects can be quite expensive upfront.
Our specialist in-house renewable finance team aim to support SMEs throughout the UK with their ambitions to reduce their carbon footprint. They do this by working closely with them, understanding the business operations and arranging the right finance for renewable energy investments.
How does renewable energy finance work?
If renewable energy projects are something that you’re interested in, we’ll work with you to determine the required loan amount in partnership with the most appropriate lender. At this point, the lender will typically outline the terms and conditions. Once your business has accepted these, you’ll receive the entire loan amount upfront. When you’ve received the equipment, you’ll then begin to make monthly repayments, inclusive of interest and over an agreed-upon duration.
What renewable assets can we finance?
In the race to reaching net zero, more and more businesses are considering renewable energy projects such as solar-energy, wind-energy and other forms of renewable power. Installing renewable energy systems can be costly, so many business owners may opt to purchase equipment for sustainable projects on finance. This can include assets such as:
- Heat pumps
- Solar panels
- Wind turbines
- Voltage optimisers
- Anaerobic digestion
- Solar battery storage systems
- Biomass boilers
- Combined heat and powers
- Electric vehicles and charging points
What are the business benefits of using renewable energy?
Using and generating renewable energy can help your business to reduce its contribution to climate change and avoid using finite resources such as fossil fuels. The benefits of renewable energy don’t just apply to the environment but can also benefit your business in the long term.
Future proof your business – An increasing number of businesses are making the decision to switch to green alternatives. With the pressure of the net zero deadline, renewable energy methods are likely to become the default choice of every business. Investing in renewable energy equipment sooner rather than later will put your business in an advantageous position against your competitors. As well as this, your company could benefit from government green energy incentives and avoid potential cost increases for renewable energy systems as the demand rises.
Cut costs with consistently lower energy bills – Traditional energy sources such as oil, coal and gas are limited, meaning that prices slowly rise each year. These types of resources can be impacted by international politics, so energy bills can fluctuate, becoming hard to predict and often causing cashflow strains. Renewable energy is more consistent, so you won’t have to worry about sharp increases from one month to the next. Many renewable energy systems also tend to have significantly lower maintenance costs, unlike traditional generators, keeping ongoing costs much lower.
Improve your reputation – With consumers becoming increasingly aware of their carbon footprint, businesses that can actively demonstrate eco-friendly policies and sustainability are more likely to be favoured by customers. Being a ‘green’ company can help improve the reputation of your business with potential clients and investors, winning you more business.
What can my business do to reduce its carbon footprint?
Removing the consumption of fossil fuels and investing in renewable energy projects and equipment such as biomass boilers and solar panels can help to reduce your business’s carbon footprint. Not only does investing in renewable energy sources reduce your carbon footprint, your business can benefit from the power generated by this equipment, and in some instances, even sell it back to the grid via power purchase agreements (PPAs).
For many businesses that operate fleets and use commercial vehicles as part of their operations, switching to electric vehicles (EVs) can also significantly reduce the emissions that contribute towards climate change. This could be reduced even further if electric vehicle fleets are charged using energy generated from renewable sources such as wind and solar power.
How can we help your business with renewable energy finance?
Whether you’re funding new projects to save or sell energy, looking to refinance an existing project or installing into a third party business, we’re on hand to help.
We understand that investing in renewables can be daunting, especially with such large up-front costs. However, we have the knowledge and expertise to help businesses implement green energy projects to help save money on energy bills, become less reliant on the grid or even take advantage of the additional income by selling the energy.
For businesses who have had energy projects in place for a minimum of six months, we may be able to support you with refinancing. This is a great way to unlock the equity tied up in your existing assets and invest it back into your business whilst your equipment pays for itself.
Applying for renewable energy finance
PMD Business Finance have partnerships with over 150 lenders, many of which have keen appetites for renewable energy projects. We’ll search the market to find you the most competitive rates and ultimately secure the best funding options for you and your business.
For a free no-obligation quote or further details on our services, you can complete our short contact form and one of our experts will contact you shortly. Alternatively, if you’d prefer to speak directly to a member of our team, you can give us a call on 0161 633 2548 or send an email to info@pmdbusinessfinance.co.uk.