Financing Options to De-Carbonise Your Site
For many businesses and sites looking to do their part by making their site more eco-friendly, the switch to environmentally friendly systems may seem to be a large investment.
However, with Helec, there are financing options available which allows you to reap the benefits of our solutions, whilst repaying at a steady rate that works for you.
In this blog, we will share financing options to de-carbonise your site.
At Helec, we proudly offer multiple services to support building projects using renewable, sustainable, and low-carbon technologies. Our 17 years of experience provide us with the expertise to professionally handle the services of design and consultation, all the way to installation and performance monitoring.
Why are renewable energy assets generally more expensive to buy and install?
Renewable & low carbon energy assets such as solar PV panels & CHP systems (Combined heat and power) can have a higher upfront cost compared to its traditional fossil fuel replacement counterparts. But if the eco-friendly options are preferred, why would they be more expensive?
Although it may seem confusing, the logic behind it actually makes sense. Let us explain:
- Initial Technology Investment: Renewable technologies, though constantly improving as the take up improves, often involve more complex tests using state of the art components and materials in order to perform, compared to older established, mass produced default boilers or heat generators that have been around for years. These developing low carbon products can make the initial purchase price higher.
- Installation Costs: Setting up a solar PV array, or a CHP system requires specialized labour and equipment. Factors like land preparation, foundation work, and electrical interconnection can add to the installation cost.
- Storage Needs: For some renewables, like solar, storing the captured energy for later use might require additional batteries, which can be expensive. Likewise CHP systems usually need their own dedicated space to be set up to work, often requiring planning & site consideration.
However, there are factors that can help offset the initial cost:
- Government Incentives: Many governments offer tax breaks, rebates, or reduced levies in export tariffs to encourage the adoption of renewable energy. These incentives can significantly assist with a new renewable project.
- Lower Operating Costs: Renewable energy systems typically have lower operating costs as the low cost power generated onsite is offset against the grid tariffs you would otherwise be charged. onsite power – grid charge = saving
- Long-Term Savings: Over the lifespan of the system, the savings made from generating low carbon power onsite far outweigh any grid tariff
- Site-Specific Factors: The cost of a renewable asset can also vary depending on the specific site. Factors like available space, sunlight hours (for solar), and existing infrastructure can influence the final price.
So, while the upfront cost of renewable assets might seem high, the long-term benefits and potential government incentives can make them a worthwhile investment. What’s more is that, depending on whom you go to for your renewable energy asset, you may be able to purchase it via a finance agreement.
Financing options to de-carbonise your site
Today’s businesses face a dual challenge: keeping costs down to stay competitive and minimizing their environmental impact. Typically, it can be quite the financial commitment to lead on both of these fronts, so what is the solution?
Helec can help you address both concerns with a unique financing solution for energy efficiency upgrades.
The traditional approach involves upfront investment in renewable energy technology like solar panels or combined heat and power (CHP) systems. While these technologies significantly reduce energy costs and carbon emissions in the long run, the initial investment can be a barrier for many businesses.
Here’s where Helec steps in. We offer a financing option called a Power Purchase Agreement (PPA). Think of it as a partnership with an energy provider like Orezten, a trusted partner of Helec.
How does a power purchase agreement work?
Capex free Upfront purchase & Installation: With a PPA, the energy provider, not your business, takes care of the upfront costs for installing the renewable energy system. This eliminates the need for a large initial investment, making these technologies free to access.
- Discounted Energy Rates: Once the system is up and running, you purchase the energy it generates at a pre determined rate, typically lower than the current market price and often locked in for a jointly agreed period (5-20 years). This provides guaranteed cost savings on your energy bills year on year
- Protection from Price Fluctuations: Energy prices can be volatile. With a PPA, you’re shielded from future price hikes as your energy costs are locked in for the duration of the agreement.
Reduced Carbon Footprint: By switching to low carbon energy provider, you significantly reduce your reliance on grid produced fossil fuel usage and lower your business’s carbon emissions. This demonstrates your commitment to sustainability, a growing priority for customers and investors alike on the pathway to a practical net zero
Benefits of a PPA with Helec:
Cost Savings: Lower energy bills thanks to discounted rates and protection from future price hikes.
- Improved Cash Flow: No need for a large upfront investment, freeing up capital for other business needs.
- Reduced Carbon Footprint: Contribute to a cleaner environment and showcase your commitment to sustainability.
- Long-Term Stability: Predictable secure energy costs for years to come, allowing for better budget planning.
- Expert Guidance: Helec’s team of specialists will assess your energy needs and connect you with a reputable PPA provider like Orezten, ensuring a tailored solution for your business.
Helec goes beyond simply connecting you with a PPA provider. Here’s what sets us apart:
- Customized Solutions: We analyse your current energy usage patterns to determine the most suitable renewable energy system size and type for your needs.
- Data-Driven Approach: By evaluating historical energy bills and usage trends, we can accurately project how much you can save with a PPA.
Long-Term Partnership: Helec remains your partner throughout the process and beyond, ensuring the smooth operation of your renewable energy system.
How do I explore financing options with Helec?
What are the benefits of financing a renewable energy asset for my site?
If you are new to financing, you might be surprised to learn that financing a renewable energy asset for your site unlocks benefits beyond just eco-friendliness. Here’s how:
- Preserves Cash Flow: Large upfront costs for solar panels, CHP systems, etc., won’t drain your bank account. Financing spreads the cost into manageable monthly payments, allowing you to invest in other areas of your business.
- Boosts Long-Term Savings: While you’ll be making loan payments, you’ll likely see significant savings on energy bills. Low Carbon cogenerated energy produces its own heat and power, reducing your reliance on expensive, fluctuating grid prices.
- Improves Return on Investment (ROI): Many financing options are structured, so your energy cost savings start immediately, offsetting your loan payments. This accelerates your ROI, making the switch to renewable energy financially attractive.
- Qualify for Incentives: Financing often doesn’t affect your eligibility for government rebates or tax credits. These incentives further reduce the overall cost of your renewable asset, making financing even more advantageous.
Tax Advantages: Some financing options might offer HMRC tax benefits on the interest paid. Consult a financial advisor to explore these possibilities.
Discover financing options with Helec today
We hope to have provided everything you need to know regarding financing options to assist with the de-carbonisation of your site. For more information on our financing options, feel free to click the link below for our contact information, so you can start your journey with us today.
The team here at Helec thanks you for taking the time to read our blog. If you have any further questions, you can contact us here. Alternatively, if you want to enquire about our expert services or for more information on our solutions, click here.
Our wide range of services enables us to provide consultation, installation, and maintenance should you require it.
Our expertise provides us the ability to offer the following energy solutions:
- Combined heat and power packages
- Complete CHP & Boiler service and maintenance packages
- Thermal stores and buffer vessels
- Air source heat pumps
- Solar thermal systems
- Large district residential heating systems
And more. See how Helec can help you today.