Here’s the truth: you don’t need to pay for solar upfront anymore.
Thinking about solar but concerned about the cost? The good news is: you don’t need to pay out of pocket to start saving on energy. Commercial solar installations can now be funded through flexible finance options — letting you reduce your electricity bills and carbon footprint without the upfront capital expense.
At Lucent Energy, we work with UK businesses every day to deliver high-performance solar systems with financing that fits your budget and growth plans. Here’s a deep dive into how it works.
Why Consider Financing Commercial Solar?
Many business owners understand the long-term benefits of solar — reduced energy costs, improved sustainability credentials, and protection against rising tariffs. But even with payback periods often under 5 years, the initial investment can be a barrier.
Solar PV systems for commercial use can range from £20,000 to well over £500,000 depending on system size and complexity. This is a significant capital outlay, especially when companies are trying to manage cash flow, payroll, and reinvestment into their core operations.
That’s where solar financing comes in: it lets you install a full system and start saving immediately, without draining cash reserves or taking on undue risk.
Option 1: Asset Finance / Solar Lease
This is a hire-purchase or lease agreement designed specifically for renewable energy installations:
How it works:
- Your business agrees to fixed monthly payments over a 5 to 10-year term.
- The solar system is installed and becomes fully operational on your property.
- You own the system outright at the end of the term.
Benefits:
- Zero upfront cost: You begin saving from day one without capital expenditure.
- Full ownership: Unlike other models, you retain full control and benefit from all energy savings.
- Tax efficiency: In many cases, lease payments are considered an operating expense and can be deducted from taxable income.
- Energy independence: Once paid off, your system generates free electricity for 20+ more years.
Things to consider:
- You’re responsible for maintenance unless bundled with an O&M package.
- A credit check and financial review will usually be required.
This model is ideal for businesses that want long-term savings, asset ownership, and full energy autonomy while preserving capital in the short term.
Option 2: Green Business Loans
Green loans are tailored lending products offered by financial institutions or government-backed schemes for businesses investing in sustainable technologies like solar.
How it works:
- You borrow a lump sum to fund the solar installation.
- Repayments are made over time (typically 3 to 10 years).
- Interest rates may be lower due to sustainability incentives.
Benefits:
- Competitive interest rates: Especially if tied to a green business initiative.
- Full system ownership from day one: You get all the energy savings and asset value.
- Potential grants and tax reliefs: Depending on your region and project.
Things to consider:
- Approval depends on creditworthiness and business performance.
- You take on the debt liability directly, though repayments can often be structured to align with your monthly energy savings.
This option is ideal for businesses that want full control, own their premises, and can access affordable financing through their bank or a green lending partner.
Option 3: Power Purchase Agreement (PPA)
A PPA is a contract where a third-party investor (often called the “solar funder”) pays for the design, installation, and maintenance of the system on your property — and you simply pay for the electricity it generates. ZERO COST SOLAR.. This means any capital you had earmarked for renewable tech could be spent elsewhere.
How it works:
- The investor installs the solar system at no cost to you.
- You agree to buy the electricity it produces at a fixed rate — usually much lower than your current energy supplier.
- The agreement lasts 15–25 years.
- At the end, you may buy the system at a nominal fee or renew the contract.
Benefits:
- Truly zero upfront cost: No capex, no loan, no lease.
- Immediate savings: Reduced electricity bills from day one.
- Performance-guaranteed: The provider is incentivised to keep the system operating efficiently.
- No maintenance burden: It’s handled by the system owner.
Things to consider:
- You don’t own the system during the contract.
- You’re committed to a long-term agreement.
- Usually only available to creditworthy businesses with strong utility usage.
PPAs are ideal for businesses that want hassle-free solar savings and aren’t focused on system ownership. They also work well for organisations operating across leased or shared sites.
Why Finance Makes Strategic Sense
- Cash-flow positive from day one: You’ll likely save more on energy than you pay for the system.
- Preserve capital: Keep your cash for staffing, expansion, or other strategic investments.
- Support ESG goals: Meet sustainability targets without spending up front.
- Improve long-term profitability: Once paid off (or at PPA end), solar provides free energy for decades.
- Enhance brand perception: Customers and stakeholders increasingly value environmental responsibility.
How Lucent Energy Can Help
We partner with experienced finance providers to offer multiple routes to solar with no capital strain:
- Site appraisals & system design
- Detailed financial forecasts
- Help with grant applications (if applicable)
- Turnkey installation with accredited teams
- Ongoing system monitoring and support
Whether you want to own your system or simply enjoy the savings, we can build a package that fits.
Ready to Power Your Business with the Sun?
If you’re ready to reduce your energy bills without the capital headache, we’re here to help.
Contact Lucent Energy today to book a free site appraisal and receive a personalised finance proposal.
Solar shouldn’t be a financial hurdle. With the right support, it’s an opportunity. Let’s make it work for your business.