ASSET FINANCE
Get in touchNo upfront capital cost to secure your energy future
Another popular method of financing the installation of Solar PV & Battery Storage systems is whereby our clients agree an asset finance package spreading the payment of the installation over a period of time, typically over five to eight years, with monthly payments.
By removing the up front capital cost of purchasing a renewable energy system, we open up the market for businesses that have good cashflow to reduce their exposure to high energy costs as well as reducing their carbon footprint, but might not have capital to pay for these installations up front.
We have a range of funding providers who are willing to work with a variety of credit scores, differing lengths of operation to provide you with the best possible rates for your finance agreement.
PPA calculator
Tax relief is achievable for the vast majority of clients, but this is a specialist area and is best discussed with your accounts department or tax advisor. Please see ‘Capital Allowances’ below.
Contact usTax Relief
The UK Government encourages commercial enterprises to invest in renewable energy through tax incentives, primarily capital allowances. These incentives mean that as well as a significant reduction in electricity spend, businesses pay reduced taxes by claiming back the cost of installing qualifying assets.
There are various types of capital allowances for plant and machinery, Solar PV being classified in this area.
- Annual investment allowance
- Most plant and machinery can claim AIA up to £1,000,000 in any given tax year.
- 100% first year allowances
- Electric cars and electric vehicle charging points qualify under this tax relief.
- 50% first year allowance
- Solar PV qualifies under this tax relief.
- The 50% First Year Allowance was due to end on 31st March 2023, however the 2023 Spring Budget extended the allowance for a further three years until 31st March 2026.
- Writing down allowances
- ‘Writing down allowances’ are one type of capital allowance. They let you deduct a percentage of the value of certain items from your profits each year. You might be able to claim more tax relief if you can use one of the other capital allowances.
Please consult with your accountants or other tax experts within your business for the most tax efficient way to manage your assets.
