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Many companies choose to pay for their solar PV installation outright using Capital Expenditure (CapEx). There are many benefits to paying for them outright; firstly you own the asset from day one and based on market conditions the payback periods are the best we have ever seen them. The administration of this is also much simpler than alternative funding mechanisms and there are potential tax benefits in relation to Annual Investment Allowance or a 50% First Year Allowance which has been extended to March 2026.
Having your panels installed sooner, means you can start to save on energy bills and CO2e sooner too.
A lot of companies ask about applying for grants that are available, however you need to weigh up the money you stand to receive against the money you could save during the grant application process. A good example of this is looking at the summer period, a grant application may pocket you £10,000 towards the project but you could have saved an additional £20k by installing the system during harvest season.
If you choose to pay for your commercial solar panels using CapEx, we will ask for staged payments. Our standard terms are typically 25% on signing of the contract, this will allow us to start the preliminaries and order materials.
Once the materials land on site we will request the next staged payment, followed by a further payment once the system is generating, then a final payment once the system is commissioned and handed over to your facilities team.
If you would like to install solar to your business or organisation but don’t have the CapEx to pay for it outright, there are other options which are open to you to help fund the panels.
Asset finance will allow you to pay for the system using a traditional payment plan and a Power Purchase Agreement would be a fully funded option, with no initial outlay.
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