Quick answer — Is asset finance available for renewable installation equipment?

Yes. Asset finance is widely used to fund renewable installation equipment. Common finance structures include hire purchase (HP), finance leases and operating leases, sale & leaseback and chattel mortgage. These are suitable for businesses that install, own or operate renewable systems — for example, building services contractors buying heat pumps, electrical contractors installing EV chargers, or landlords fitting solar PV and battery storage.

• Typical borrowers: installation companies, contractors, energy services firms, commercial landlords and SMEs upgrading premises.
• Commonly financed: air-source & ground-source heat pumps, commercial & domestic EV chargepoints, solar PV panels, inverters, battery storage and specialist installation tooling.
• Benefits: preserve cashflow, spread payments, often include installation costs and warranties, and can match asset life to repayment term.

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How asset finance works for renewable equipment (what lenders offer)

Asset finance lets you buy or use equipment while repaying the cost over time. Lenders structure deals around the expected life and resale value of the equipment — renewables often have predictable lifespans, which helps lenders set terms.

Common finance types

• Hire Purchase (HP) — You pay a deposit (sometimes 0%) then monthly instalments. Ownership usually transfers after the final payment. Popular where the business wants long-term ownership (e.g., solar PV on landlord-owned buildings).
• Finance Lease / Operating Lease — Lower initial outlay; operating leases are useful where you don’t want ownership (for short-life kit or when equipment is upgraded frequently, e.g., EV chargers under a managed service).
• Sale & Leaseback — If you already own equipment, you can sell it to a funder and lease it back to unlock working capital.
• Chattel Mortgage — The lender takes a mortgage over the asset; suitable for higher-value equipment purchases.
• Vendor / Supplier Finance — Manufacturers or suppliers may offer tailored payment terms or financing packages for installers.

Typical terms and scope

• Term lengths: generally 1–10 years (shorter for EV chargers, longer for heat pumps and solar PV).
• Funding levels: options range from partial deposit to up to 100% (including VAT & installation) depending on risk, lender and whether customers receive grants.
• Security: the financed equipment usually secures the deal; in some cases a director guarantee or company charge may be requested for smaller or newer companies.
• Residual values: for leasing, a residual/salvage value may be set; this affects monthly cost.

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Which renewable items do lenders typically finance?

Lenders will usually consider equipment with clear technical specifications, stable resale/recovery value and a predictable working life. Typical items:

• Heat pumps — air-source and ground-source units, including associated controls and ancillary plant. Often eligible for longer HP or lease terms.
• EV chargers — wallboxes, commercial rapid chargers, depot and fleet chargers. Financing can be HP, operating lease, or embedded in energy-as-a-service agreements.
• Solar PV & battery storage — panels, inverters, batteries and monitoring systems. These are commonly financed over 7–10 years depending on system size and warranties.
• Turnkey projects — funders can finance equipment plus installation where one contract covers supply and installation.

Tip: When you apply, provide product specifications, warranty details and estimated useful life — lenders value clarity on asset durability and resale prospects.

Who lends and who brokers these deals?

There are specialist equipment financiers and leasing houses that understand renewable technology lifecycles and depreciation. High-street banks can provide asset finance for established customers. There are also lenders and funds focused on green and sustainability projects that recognise the longer-term benefits of energy efficiency investments.

Many businesses work with finance brokers who compare multiple funders and negotiate terms. UK Business Loans’ role is to match you quickly with vetted lenders and brokers experienced in building services and sustainability projects — we’ll help you get quotes from the right specialists rather than approaching multiple lenders yourself.

For sector-specific business finance, see our building services business loans page for more detail: building services business loans.

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Eligibility — what lenders look for

Lenders assess risk using a mix of company and asset factors. Typical checks:

• Business structure & trading history — limited companies and LLPs with trading history are preferred. Start-ups may still access finance but often with higher deposit or stronger security.
• Cashflow & profitability — evidence you can meet monthly repayments (bank statements, management accounts).
• Credit profile — business and sometimes director credit checks; asset finance can be more flexible than unsecured lending.
• Contract pipeline — installers should supply contracts, purchase orders or letters of intent to strengthen an application.
• Asset life & resale value — lenders prefer assets with predictable useful lives and residual values (warranties help).

Note: Completing an enquiry is not a loan application and won’t impact your credit score. Lenders or brokers may carry out checks later if you choose to proceed.

Costs, deposits and typical terms — what to expect

Costs depend on the structure, lender and your credit profile. High-level guide:

• Deposits: 0%–20% typical, depending on provider and risk.
• Terms: 1–10 years; EV chargers often shorter, heat pumps and PV may be financed over longer terms to reflect useful life.
• Fees: arrangement and documentation fees can apply. Ask upfront about early repayment charges and end-of-term options.
• VAT: VAT treatment varies — some lenders will finance VAT; others expect it to be handled separately.

Compliance note: UK Business Loans does not lend and cannot quote interest rates. Our service is free — submit your details for a no-obligation quote from lenders and brokers.

Tax and grant considerations

Grants and tax incentives can change frequently. Before you finance, check current government incentives (for example, local grant schemes or the Boiler Upgrade Scheme when applicable). Grants reduce the amount you need to finance and can improve deal terms.

Tax reliefs such as capital allowances may be available for some equipment — always consult an accountant for tax-specific advice.

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Real-world example

Illustrative case: A small electrical contractor finances 10 commercial EV chargers and installation via a 5‑year hire purchase. The monthly repayments are covered by staged client payments and ongoing maintenance contracts, preserving working capital for new bids. (Numbers illustrative.)

How UK Business Loans helps you get finance faster

We streamline the process so you spend less time searching and more time installing:

• Quick enquiry: a short form takes under 2 minutes and is not a formal application.
• Fast match: we connect you with lenders and brokers who specialise in renewable equipment and building services.
• Vetted partners: our partners have experience in structuring asset finance for heat pumps, EV chargers and solar PV.
• No obligation & free: you receive quotes and choose whether to proceed.

Important: UK Business Loans is an introducer and not a lender. We do not provide regulated financial advice. We will share your enquiry with selected lenders or brokers who may contact you with offers; lending decisions and any credit checks are made by those partners.

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Frequently asked questions

Can I finance installation costs as well as equipment?

Yes — many lenders include installation and commissioning within the finance agreement if it’s part of the same supplier contract. Make this clear when you request quotes.

Will applying affect my credit score?

Submitting an enquiry through UK Business Loans does not affect your credit score. Lenders or brokers may carry out checks later if you proceed with an application.

Are start-ups eligible?

Some start-ups can access asset finance but often need a higher deposit, stronger security or specialist lenders. Brokers in our panel can help match start-ups to suitable funders.

What documents do lenders want?

Typical documents: company registration, recent management accounts or historic accounts, bank statements, supplier quotes or invoices, and details of installation contracts.

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Next steps — Get a free, no-obligation eligibility check

Preserve cashflow and move projects faster. Complete our short form and we’ll match you with lenders and brokers who specialise in renewable equipment finance. Free, fast and no obligation.

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Written by UK Business Loans — last updated 2025-10-30. We connect businesses with vetted lenders and brokers; we do not lend or provide regulated financial advice. By submitting your enquiry you agree to our Privacy Policy and that we may share your details with selected finance partners for quote purposes.