Solar Panels – Commercial Finance

by Solar Selections on November 2, 2012

Financing commercial solar projects

Solar panels have become a more economically feasible procurement in commercial onsite energy generation thanks to a clever new finance model. In the past many organisations struggled to justify solar panels as a commercially viable building upgrade due to payback expectations and upfront costs. Solar Selections and their specialised renewable finance partners have overcome this and can now offer applicable businesses cash flow positive solar power installation finance.

Solar Selections has established relationships with multiple finance avenues whom collectively can provide the right finance package to suit any commercial solar power project or client. The most popular finance packages for solar power installations are unsecured.

Unsecured Finance for Solar Power

Unsecured Finance means that no collateral is required from the client, making this a very low risk form of borrowing. Under certain financing models the client can exclude the solar panels from their balance sheets for the period of the finance term. With regards to corporation tax considerations the fixed repayments can be considered as an expense.

The reason that financiers are now able to offer this form of finance is because the monetary benefits that can be reaped from a commercial solar power system will outweigh the repayments. This means that there is no reason why any repayments can’t be made and hence it is low risk.

Many organisations prefer this form of unsecured finance so that they can leave collateral available for necessary secured funding. It provides flexibility and many find that the interest rates do not differ greatly due to the low risk provided by the Feed in Tariff scheme.

Example of a Financed 250kWp Solar Power Installation

The table and graph below shows how the gross cumulative profit for a 250kWp solar array can remain cash flow positive from Year 1. The reason for the larger repayment in Year 1 is because some finance models require a 5% deposit.

Contact Solar Selections for more details.


Who can access the Commercial Solar Power Finance?

Not every business can access this finance; however, most can. The financiers will need to vet any organisation looking to benefit from finance for solar power. All that is required are modest assets and a good trading history, but please remember that no collateral is required as the finance is unsecured. The guaranteed income from the solar panels is enough to manage the risk for the financier.

If in doubt please just ask Solar Selections if your business can benefit from commercial solar power through cash flow positive finance.

Learn More

If you are considering a large scale solar panel array for a site or number of sites, contact Solar Selections today. We can not only help source the most suitable finance option for your project, but we will also manage a tender for the supply and installation of the system. This will enable the best balance of price and product to be achieved.

Solar Selections is a Free and Impartial Solar brokering service.

Written by Tom Charlesworth
020 7205 2267
© 2012 Solar Selections Ltd

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{ 1 comment… read it below or add one }

Harry Manfield November 6, 2012 at 9:39 am

This sounds like a highly viable solution given the right client, though its hard ot know who that is. I have a commercial property portfolio I’d like to look at this with. Is it possible to bundle projects together like that? Is there a minimum amount that can be considered for this finance for instance?
Also, when you say modest assets and a good trading history what should I expect to be asked about my business?


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