Solar Panels for Business: How Asset Finance Makes Renewable Energy Finance Accessible

As businesses increasingly prioritise Environmental, Social and Governance (ESG) initiatives, the adoption of renewable energy solutions like solar panels for business has surged. In today's sustainability-focused landscape, renewable energy plays a pivotal role in reducing carbon footprint and promoting environmental stewardship.

However, one significant barrier to entry for businesses has been the upfront cost of solar panel installations. Fortunately, asset finance offers a viable solution, making renewable energy finance accessible and affordable for businesses of all sizes.

The rise of solar panels for business

The adoption of solar panels by businesses is on the rise, driven by a desire to reduce energy costs and embrace environmentally friendly practices. This is evidenced by 2,102 Solar Panel Installation businesses in the UK as of 2023, an increase of 5.4% from 2022. The move to adopt solar energy is an increasingly popular one as it not only helps businesses lower their carbon footprint but also offers substantial cost savings in the long run.

 Key benefits of solar panels for businesses

Let’s look at the key benefits of solar panels for businesses and the main reasons to consider investing in these renewable energy solutions.

• Cost savings: Solar panels help businesses reduce electricity bills by generating their own renewable energy, leading to significant long-term cost savings.

• Environmental sustainability: Adopting solar panels demonstrates a commitment to reducing carbon footprint and environmental impact, aligning with corporate social responsibility goals.

• Energy independence: Solar panels provide businesses with a reliable and sustainable source of energy, reducing dependence on traditional energy sources and volatile energy markets.

• Enhanced reputation: Businesses that invest in solar energy showcase their commitment to sustainability and environmental stewardship, enhancing their reputation among customers, investors, and stakeholders.

• Long-term investment: Solar panels have a long lifespan and require minimal maintenance, providing businesses with a reliable energy solution and a high return on investment over time.

• Energy security: Using solar panels for business purposes offers greater resilience against power outages and grid disruptions, ensuring continuity of operations and reducing downtime risks.

• Innovation and technology: Investing in solar panels demonstrates a forward-thinking approach and embraces innovation, positioning businesses as industry leaders and attracting eco-conscious consumers.

Understanding asset finance for solar panels

On average, commercial solar panels can cost £16,000 – £60,000 (20kW to 50kW systems) for small to medium-sized businesses. Asset finance serves as a critical funding solution for businesses looking to invest in solar panel installations without bearing the burden of hefty upfront costs. 

This business finance solution enables businesses to acquire solar panels through various means, such as leasing, hire purchase, or business loans. By spreading the cost of solar panel investments over time, asset finance makes it feasible for businesses to embrace renewable energy solutions without compromising their financial stability.

Advantages of using asset finance for solar energy solutions

There are lots of advantages to enjoy by leveraging asset finance for solar panel installations. Beyond cost-effectiveness and improved cash flow management, asset finance offers businesses the flexibility to tailor repayment terms to their specific financial needs. By aligning financing with energy savings, you can maximise your return on investment in solar energy solutions.

• Cost-effectiveness: Asset finance offers a cost-effective solution for acquiring solar panels by spreading the investment cost over time, aligning with energy savings.

• Improved cash flow: Utilising asset finance allows you to preserve working capital and maintain liquidity, enhancing cash flow management.

• Flexibility in repayment: Asset finance offers tailored repayment terms and structures, accommodating your company’s financial needs and preferences.

Implementing solar panel asset finance involves several steps, from evaluating financing options to selecting reputable suppliers and navigating the installation process. Business owners are encouraged to seek guidance from commercial finance specialists to optimise their solar panel investments and ensure a smooth transition to renewable energy solutions.

1. Evaluate financing options: Research and compare various asset finance options available for solar panel installations, considering factors such as interest rates, repayment terms, and eligibility requirements.

2. Partner with a business finance specialist: Collaborate with a reputable business finance specialist to navigate the complexities of solar panel asset finance, ensuring tailored solutions that meet your specific needs.

3. Choose a reliable supplier: Select a trusted solar panel supplier with a track record of delivering quality products and services, ensuring seamless installation and long-term reliability.

4. Prepare necessary documentation: Gather and prepare all required documentation, including financial statements and business plans, to streamline the application process for solar panel asset finance.

5. Monitor energy performance: After installation, monitor the energy performance of your solar panels to optimise ROI, identify potential efficiency improvements, and maximise long-term benefits.

Renewable energy finance: Let Millbrook power your business with flexible asset finance solutions

Asset finance plays a pivotal role in driving the adoption of solar panels for businesses, so organisations of all kinds can embrace renewable energy solutions and achieve sustainability goals. By exploring asset finance options for solar panels, you can take proactive steps towards a greener and more financially sound future, contributing to a more sustainable planet while reaping the benefits of cost savings and environmental stewardship.

At Millbrook Business Finance, we understand the importance of providing access to flexible financing options to help fuel business growth. Our range of financing solutions is designed to support businesses at every stage of their journey. Whether you need to bridge temporary cash flow gaps, invest in growth initiatives, or seize market opportunities, our experienced team is here to help.

Explore Millbrook’s financing solutions today to discover how we can help you meet your energy sustainability goals. Start your journey in obtaining asset finance for your solar panels today by checking your eligibility now or using our business finance calculator.