Quick answer

TL;DR

• EPCs: Often required or strongly preferred for property‑backed retrofit loans and larger programmes. Valid for 10 years.
• ESOS/SECR: Not universally mandatory for funding, but highly useful evidence for larger businesses or projects where energy baseline and governance matter.
• Feasibility studies: Usually required for medium/large CAPEX projects (e.g. solar + battery > ~£50k, heat networks). Supplier quotes may suffice for smaller installs.

Free Eligibility Check — quick, no‑obligation matching to lenders/brokers who specialise in sustainability finance.

Why lenders ask for EPCs, ESOS/SECR or feasibility work

Lenders carry out due diligence to understand three core risks: technical viability, value preservation and cashflow impact. Energy projects are heterogeneous — a simple LED upgrade is very different from a rooftop solar array with battery storage and grid‑export arrangements.

Here’s why each item matters:

• Technical viability: Feasibility studies or surveys show the technology will deliver the savings or revenue the business expects.
• Asset value & security: EPCs and surveys help a lender assess property condition and residual value (important for secured loans).
• Regulatory & compliance risk: ESOS/SECR reports demonstrate governance, measurement practices and whether a company has already identified cost‑effective savings.

For authoritative guidance on the schemes, see GOV.UK ESOS and GOV.UK SECR pages and the EPC guidance on GOV.UK.

EPCs: what they are and when lenders require them

What is an EPC?

An Energy Performance Certificate (EPC) rates a building’s energy efficiency from A to G and gives recommended improvements. EPCs are valid for 10 years and are standard for commercial and residential lease/sale transactions.

When lenders ask for an EPC

Lenders commonly request EPCs when:

• Loans are secured on property (mortgage, commercial property development finance).
• Projects are building retrofits where the loan is justified by expected energy savings (insulation, HVAC, major fabric works).
• Grants or match‑funded finance are involved and an EPC is required by the grantor.

Practical guidance

If your building doesn’t have a current EPC, organise one early. It typically costs less than delays to funding and helps lenders quantify risk and likely savings. Exceptions: some asset finance (for equipment only) and unsecured working capital lenders may not require an EPC.

• Checklist: EPC certificate, current rating, recommended improvements and cost estimates.

ESOS & SECR: what they are and their relevance to sustainability loans

Short explanation

ESOS (Energy Savings Opportunity Scheme) requires qualifying large undertakings to audit energy use and identify cost‑effective savings. SECR (Streamlined Energy and Carbon Reporting) requires certain companies to include energy and carbon metrics in annual reports. See GOV.UK for ESOS and SECR details.

Do lenders require ESOS or SECR?

Not usually for small projects, but ESOS/SECR reports are strong supporting evidence for lenders when:

• The borrower is a large company and ESOS/SECR is applicable — lenders expect governance evidence.
• Project savings are material to loan affordability (e.g. large energy cost reduction program).

Practical advice

If you have ESOS/SECR reports, attach them. If not, explain why (e.g. business size) and supply alternative evidence: 12–24 months of utility bills, half‑hourly data, supplier statements or an energy baseline prepared by an accredited consultant.

Feasibility studies & technical surveys — when they’re needed

What is a feasibility study?

A feasibility study covers technical design, costs, payback calculations, project risks (planning, grid connection), and funding options. For renewables this will include yield assessments, inverter specs, warranties and MCS/industry certificates.

When lenders ask for one

Lenders commonly require feasibility or technical surveys for:

• Medium‑to‑large CAPEX projects (typical trigger: >£50k, but thresholds vary by lender).
• Complex schemes (battery storage, combined heat & power, heat networks, multi‑site rollouts).
• Projects where revenue depends on merchant sales, exports or third‑party offtake agreements.

What a good feasibility study should include

• Technical design and specification
• Firm installation quotes and supplier credentials (MCS if applicable)
• Forecasted savings/revenue, cashflow impact and payback
• Permitting/planning status and landlord permissions
• Risk matrix and contingency allowances

If you already have a study, lenders will typically accept it. If not, a strong supplier quote plus an installation plan can be enough for smaller facilities.

Get Quote Now — Free Eligibility Check and tell us the project size — we’ll match you with lenders who routinely fund your type of scheme.

Typical documents lenders request — quick checklist

Prepare these to speed up the process:

• Company accounts and recent management accounts
• Cashflow forecasts and business plan summary
• EPC certificate (if property related)
• ESOS / SECR reports (if available)
• Feasibility study or technical report for larger projects
• Multiple supplier quotes and equipment specs (MCS certificates for renewables)
• Planning permission, grid connection offers or letters of intent
• Landlord consent or full lease terms
• Grant offer letters or incentive confirmations

Free Eligibility Check — upload what you have and we’ll match you to lenders who want that exact evidence.

How UK Business Loans helps

We collect a short set of details and match your enquiry to specialist brokers and lenders who understand sustainability projects. Our typical process:

1. Complete the quick form — it takes around 2 minutes.
2. We match you to 1–3 lenders/brokers who fund similar projects.
3. Lenders review your documents and return quotes or questions directly.

Benefits: faster matching, less admin, and better chances of a suitable offer because you’re connected to lenders who understand your sector.

Important: UK Business Loans introduces your enquiry to selected brokers and lenders. We do not lend money or provide regulated financial advice. Using our service is free and non‑binding.

Start Your Enquiry — Free Eligibility Check

Real examples — short case vignettes

LED retrofit (small capex)

A small café upgraded lighting and controls for £18k. Lenders accepted supplier quotes and payback projections; no EPC was required. Asset finance was arranged in under 2 weeks.

Solar + battery (mid‑capex)

A manufacturing firm sought £220k for rooftop solar and battery storage. Lenders required a feasibility study, an EPC for the premises and MCS certification for the installer. After providing these, the client secured a competitive rate with staged drawdown aligned to installation milestones.

If your project is similar, Get Quote Now and upload any studies or quotes you already have.

FAQs

Do I always need an EPC to get a sustainability loan?

No. EPCs are common for property‑backed and substantial retrofit loans but not always required for equipment finance or unsecured lending. An EPC usually helps speed the process.

Will ESOS or SECR certification help my application?

Yes — they act as strong evidence of energy baseline, reporting and governance. Lenders value them for larger or corporate transactions.

What size of project normally needs a feasibility study?

Typically medium to large projects (often from ~£50k upward). Lenders want to see technical viability and robust cost/savings forecasts for these schemes.

Can I get funding without technical surveys?

Sometimes: for smaller installations supplier quotes and warranties may suffice. For larger loans, lenders often request a survey or feasibility report.

How long does lender due diligence take?

It varies. With prepared documents, many lenders can respond within days; complex projects can take several weeks for technical review and legal checks.

Will applying affect my credit score?

Submitting an enquiry through us does not affect your credit score. Individual lenders may perform credit searches later if you proceed.

Is UK Business Loans a lender?

No. We introduce you to suitable brokers and lenders and do not provide financial advice or lend directly.

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Next steps — get matched quickly

Ready to see which lenders are likely to fund your sustainability project? Complete our short enquiry form — it takes about 2 minutes. We match you to specialist lenders or brokers and you’ll typically receive responses by email or phone.

Start Your Enquiry — Get a Free Quote

Quick next steps

• Complete the short form (2 minutes).
• Attach any EPC, ESOS/SECR reports, quotes or feasibility studies.
• We match and introduce you to lenders — they contact you directly with quotes or questions.