Solar Funding Options
Future Energy Solutions realise that one of the principle barriers to the adoption of renewable energy is the cost. As such we have worked to remove this barrier and can now offer various methods of Solar Funding options or for your other renewable projects through our relationship with strategically positioned installers.
We work closely with funders interested in renewable technologies and can help individuals and organisations secure finance for many projects based on clear demonstrable returns.
There are many ways of financing renewable projects and they are always changing as new incentives come along so contact us for the latest news. Future Energy Solutions can help you get your renewable project off the ground whatever your circumstances.
Using company capital to purchase a Solar PV system will offer the highest return on investment (ROI) and shortest payback period. With no loan interest involved you can directly compare the Internal Rate of Return with other purchases you may be considering. The ROI will always depend on numerous factors such as location or orientation but you can expect an annual return of anywhere between 10 to 20 percent by purchasing a Solar PV system.
By taking out finance to pay for the Solar PV you are spreading the purchase cost over 1 – 7 years. Interest rates will vary anywhere between 3.5 to 9 percent depending on your companies circumstances and credit standing. Excluding the initial outlay your cash-flow should remain positive. By spreading the repayments over a 6 or 7 year term, most of our clients report that their loan repayments are covered by the income and savings provided by the Solar PV. Put simply, from the moment the system is switched on the company energy bills are reduced without increasing monthly outgoings.
FULLY FUNDED OR PPA
Don’t have the capital to invest in solar or unable to borrow but need to reduce your energy bills? A Power Purchase Agreement (PPA) may be just be the solution you are looking for. The system is installed at no cost to our client, no finance agreement, no deposit and no loan. Your roof effectively becomes a micro-generation facility whereby you allow your roof to be used to generate electricity from Solar PV in exchange for cheaper daytime electricity. At the end of a 20 year term, the ownership of the system is transferred to you and you can enjoy free electricity for the remaining lifetime of the system. This is likely to be around 15 – 20 years.
We can offer the ‘Free Solar’ for businesses, schools, colleges and public sector organisations. As the electricity generator you get to use all the electricity for a reduced rate while the funding company receives the Feed-in-Tariff. At the end the of the 20 year agreement, the system is yours leaving you to continue benefiting from the free electricity it generates.
We can also show you how loans will cover the cost of the installation and equipment with Solar Funding. This way you are able to get your system installed with no initial outlay of capital. The repayments for the loan are subsequently made using the earnings from the Feed-in-Tariff and Export Tariff payments. Once the loan has been completely repaid all further Feed-in-Tariff and Export Tariff payments are left for you.
Through our fantastic partnerships we can offer funded Renewables through the Siemens/Carbon Trust Deal and Free systems through REI Renewable Energy Investments