Asset finance for solar PV, batteries & inverters — HP or leasing?

Short answer: Yes — UK Business Loans can match UK businesses with lenders and brokers that offer asset finance for commercial solar PV systems, battery storage and inverters, including Hire Purchase (HP) and leasing options. We don’t lend ourselves; we introduce you to finance providers who can offer terms, and completing our enquiry is a free, no‑obligation way to get an eligibility check and fast quotes. Get Quote Now — Free eligibility check

What is asset finance for solar installations?

Asset finance is a way to pay for physical equipment — in this case commercial solar PV panels, inverters, battery storage and associated hardware and installation. Rather than paying the full capital cost up front, asset finance spreads the cost over time via a hire‑purchase agreement or a lease. This helps preserve working capital and can make larger sustainability projects commercially viable.

Typical assets financed include:

• Solar PV panels and racking (commercial rooftops or ground‑mount)
• String or central inverters and hybrid inverters
• Battery storage systems and battery management hardware
• Balance of system items: cabling, meters, monitoring equipment and sometimes the installation contract

Who uses it? SMEs, retail chains, manufacturers, logistics depots, schools, housing associations and charities (subject to lender criteria) that want to reduce energy bills, improve sustainability credentials and manage cashflow without a large upfront capital spend.

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HP (Hire Purchase) vs Operating Lease / Finance Lease — which suits solar?

Hire Purchase (HP) — how it works, pros & cons

Hire Purchase involves fixed repayments over an agreed term. Once the final repayment is made (or an option to purchase is exercised), ownership moves to the business. HP is effectively an instalment purchase.

• Pros: predictable repayments; you typically own the asset at the end (capital allowances may be available); easier to claim any VAT where applicable.
• Cons: higher repayments than some lease arrangements; asset and liability appear on your balance sheet (accounting treatment varies).
• Best for: businesses that want to own the equipment and claim tax reliefs.

Leasing (Operating Lease / Finance Lease) — how it works, pros & cons

Leasing covers a range of contracts. A finance lease is similar to HP in economic terms (you effectively finance the asset), while an operating lease is more like renting — the lessor retains ownership and you pay to use the equipment for a term.

• Pros: lower initial cash outlay; potential off‑balance sheet treatment (dependent on accounting standards and lease type); flexibility to upgrade equipment at the end of term.
• Cons: you may never own the asset (operating lease); tax/treatment differs from HP — get professional advice.
• Best for: businesses prioritising cashflow or those who want replacement/upgrades without owning obsolete kit.

Comparison at a glance:

Feature	Hire Purchase	Leasing
Ownership at end	Yes (after final payment)	Maybe (finance lease) / No (operating lease)
Balance sheet	Asset & liability	Depends on lease type/accounting
VAT treatment	Often reclaimable if VAT-registered	Varies by contract
Cashflow impact	Moderate	Lower initial impact

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Typical terms, deposits & repayments for solar asset finance

Loan and lease sizes vary by project. UK Business Loans works with partners who arrange finance from roughly £10,000 up to several million, depending on scale and complexity.

• Typical deposits: 0–20% depending on lender and credit profile.
• Typical terms: 1–10 years for batteries/inverters; 5–15+ years often used for larger PV installations.
• Rates & repayments: depend on business credit, the asset life, installer credentials and projected energy savings—your matched lender/broker will provide specific quotes.

Who can apply / eligibility

Eligible business types typically include limited companies, LLPs, charities, social housing providers, farms and established SMEs. Lenders usually look for:

• Trading history and turnover sufficient for the project
• Business bank statements and management accounts
• VAT registration (often helpful) and clear ID for directors
• Site access or proof of lease/ownership where the equipment will be installed

If you have a complex ownership structure or a newer business, specialist lenders in our network may still be able to help — submit an enquiry to find out.

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How lenders assess solar & battery projects

Lenders assess the project both financially and technically. Key factors include:

• Installer accreditation (MCS or equivalent) and workmanship warranties
• Manufacturer warranties for panels, inverters and batteries
• Detailed installer quotation and equipment specification
• Projected energy generation, savings and ROI; presence of PPAs or commercial offtake arrangements
• Site surveys, planning permissions (if relevant) and existing energy usage data

Good documentation and accredited installers dramatically increase the chance of a fast, competitive quote.

Documents & information you’ll likely need

• Recent business bank statements (3–12 months)
• Company accounts or management accounts
• VAT registration number (if applicable)
• Installer quotation, MCS certificate or installer profile
• Equipment spec sheets, manufacturer warranties, and expected output estimates
• Director ID and proof of address
• Site lease or ownership evidence

Have these ready to speed up the quote process.

Costs, tax and accounting considerations

Tax and accounting treatment differs between HP and leasing:

• VAT: If you buy the equipment (HP), VAT on the purchase may be reclaimable by VAT‑registered businesses. Lease VAT treatment depends on the contract; check with your accountant.
• Capital allowances: Ownership routes often allow capital allowance claims for qualifying plant and machinery; leasing payments are usually treated as an expense.
• Balance sheet: Ownership routes add both asset and liability; leases may be treated differently under accounting standards—seek professional advice.

Energy savings and reduced operational costs influence payback, but every case is unique — ask your accountant for firm guidance based on quoted terms.

How UK Business Loans helps — the simple process

We act as an introducer to lenders and brokers who specialise in sustainability and asset finance. Our role is to match your enquiry to the most appropriate partners quickly.

1. Complete our short enquiry form (about 2 minutes) — it’s not an application, just information to match you to lenders.
2. We pass your details to selected lenders/brokers experienced in solar and battery projects.
3. Partners will perform a fast eligibility check and provide quotes or next steps — often within hours for straightforward projects.
4. You compare offers and progress directly with the broker or lender who best fits your needs.

Our service is free and without obligation — we only earn revenue when a business completes an enquiry and proceeds with a lender/broker. Start your enquiry — Get Quote Now

When asset finance may not be the best option

Asset finance is ideal for many commercial projects, but alternatives exist:

• Grants or subsidised schemes may be better for smaller or public-sector projects
• Power Purchase Agreements (PPAs) can avoid upfront cost and are worth considering for sites where you don’t want to own equipment
• Direct CAPEX purchase could be preferable if you have available capital and want maximum tax benefits

Not sure which route suits you? Submit a short enquiry and we’ll match you to brokers who can advise on the right approach.

Short case studies (illustrative)

Example A — Manufacturing site (HP)

A mid-sized manufacturer financed a 100kW roof‑mounted PV system via Hire Purchase. The business chose HP to own the asset and access capital allowances. The matched lender provided a competitive term that aligned repayments with projected energy savings, enabling ownership at the end of term.

Example B — Retail chain (Leasing)

A regional retail chain leased battery systems and inverters across three sites to smooth peak demand. Leasing reduced the chain’s initial capital outlay, provided upgrade options and supported a centralised maintenance arrangement negotiated by the broker.

Frequently asked questions

Do you provide asset finance for commercial solar PV, batteries and inverters?

Yes. UK Business Loans connects businesses to lenders and brokers offering Hire Purchase (HP) and leasing for commercial solar PV, battery storage and inverters. We introduce you — lenders supply the quotes and decide terms.

What’s the main difference between HP and leasing?

HP typically results in ownership after the final payment and may allow capital allowances; leasing is usually a rental arrangement where ownership either stays with the lessor or is determined by lease type. Tax and accounting treatment differs — consult an accountant.

What size projects do you arrange finance for?

We work with partners who arrange finance from around £10,000 upwards. Exact ranges depend on lender appetite and project specifics.

Can my business apply if credit is imperfect or I’m new to the market?

Possibly. We have access to specialist lenders and brokers who consider a broad range of credit profiles and newer businesses — submit details and we’ll match you to the right partner.

Does completing the enquiry form affect my credit score?

No. Completing our enquiry form is not a credit application and does not affect your business or director credit file. Lenders may perform checks if you progress to a formal application.

How quickly will I get quotes?

For straightforward projects you can often receive an initial response within hours; larger or more complex projects may take several business days.

Get a free eligibility check

Ready to see the options for your solar PV, battery or inverter project? Complete a short enquiry now and we’ll match you with lenders and brokers who specialise in sustainability and asset finance. It takes around two minutes, it’s free and there’s no obligation. Get Quote Now — Free Eligibility Check

Want to read more on sustainability funding options? See our sustainability loans resource for wider green finance routes: sustainability loans.

1. Do you arrange asset finance (Hire Purchase or leasing) for commercial solar PV, battery storage and inverters in the UK?
Yes — UK Business Loans introduces UK businesses to lenders and brokers who offer HP and leasing for commercial solar PV, batteries and inverters and our free enquiry matches you to providers who supply quotes.

2. What’s the main difference between Hire Purchase (HP) and leasing for solar and battery systems?
HP usually results in ownership after the final payment (with possible capital allowances and VAT reclaim if VAT‑registered), while leasing is typically a rental arrangement where ownership and accounting/tax treatment depend on lease type.

3. How much finance can I get for a commercial solar project and what are typical minimums?
Our partner lenders arrange asset finance from around £10,000 up to several million depending on project size, credit and installer credentials.

4. Will completing your free eligibility check affect my business or director credit score?
No — submitting UK Business Loans’ enquiry is not a credit application and will not affect your credit score; lenders may do checks only if you progress to a formal application.

5. What documents will I need to speed up quotes for solar PV, batteries and inverters?
Typically recent business bank statements, company accounts or management accounts, VAT number (if applicable), installer quotation and MCS/installer profile, equipment spec sheets and warranties, site lease/ownership evidence and director ID.

6. How quickly can I expect to receive quotes for solar asset finance?
For straightforward projects you can often receive an initial eligibility response within hours, while larger or more complex projects may take several business days.

7. What deposits, terms and repayment lengths are typical for solar and battery asset finance?
Deposits usually range from 0–20% and terms commonly run 1–10 years for batteries and inverters and 5–15+ years for larger PV installations, with rates depending on credit, asset life and installer credentials.

8. Can a business with imperfect credit or a new company get asset finance for solar projects?
Possibly — we work with specialist lenders and brokers who consider a range of credit profiles and newer businesses, so submit an enquiry to be matched to suitable partners.

9. How are VAT, capital allowances and accounting treatment handled for HP versus leasing on solar equipment?
Generally HP can allow VAT reclaim (if VAT‑registered) and capital allowance claims because you own the asset, whereas VAT and tax treatment for leasing varies by contract and accounting standards — consult your accountant for specifics.

10. When might asset finance not be the best way to fund a commercial solar or battery installation?
Asset finance may be less suitable if you can access grants or subsidised schemes, prefer a PPA to avoid ownership, or have sufficient CAPEX to buy outright and maximise tax benefits.