Construction business loans — Can sustainability loans fund solar PV, EV chargers & heat pumps?
Summary — Can sustainability loans cover solar PV, EV chargers and heat pumps?
Yes. Sustainability (or green) loans and related commercial finance products commonly fund site-level sustainability upgrades for construction businesses — including solar PV on welfare units and offices, depot EV chargers and electrical upgrades, and commercial heat pumps for accommodation or completed properties. Approval and the best product depend on project size, installer credentials, projected savings and business finances. For a fast match to specialist lenders and brokers, start a Free Eligibility Check now: Get Quote Now — Free Eligibility Check.
UK Business Loans is an introducer. We do not lend or give regulated financial advice. By submitting your enquiry you’ll receive a free, no-obligation quote from lenders and brokers. Lenders may carry out eligibility or credit checks prior to offer.
Key takeaways
- Yes — sustainability loans and related commercial finance can fund solar PV, EV chargers and heat pumps on construction sites and depots, typically from about £10,000 upward.
- Eligible finance types include asset finance, green business loans, leasing, hire purchase, and PPAs for solar.
- Lenders look for credible installers (MCS/NICEIC where relevant), energy savings evidence, quotes and healthy business cashflow.
- Next step: complete a Free Eligibility Check to see which lenders or brokers in our panel match your project.
What are sustainability loans?
Sustainability loans (also called green loans, energy efficiency loans or commercial sustainability finance) are business finance products intended to fund projects that reduce energy use or carbon emissions. Lenders may offer purpose-specific green loans or standard business loans where funds are earmarked for a sustainability upgrade.
They differ from grants or tax relief because they are repaid over time. They also differ from third-party ownership models (like some solar PPAs) where a provider installs and owns the equipment and the business buys power.
Providers include high-street banks, specialist green lenders, specialist asset finance houses and brokers who place with panels of lenders. UK Business Loans connects businesses with lenders and brokers who can help assess which product fits your project and cashflow profile.
Why construction firms are eligible — and why these upgrades matter
Construction companies and site operators commonly need energy and transport-related upgrades across depots, temporary welfare units and completed buildings. Typical use-cases:
- Rooftop solar PV on site offices, storage containers and welfare units to cut diesel generator use.
- EV chargers at depots for electric vans and fleet vehicles, including electrical distribution upgrades.
- Air-source or ground-source heat pumps for site accommodation, modular homes or to improve the value of completed developments.
Benefits include lower operating costs, improved environmental credentials (useful for tenders and client ESG requirements), and potential regulatory or planning advantages. Funded projects also make depots and fleets future-ready as fuel and energy rules tighten.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote
What sustainability loans can fund (solar PV, EV chargers, heat pumps)
Solar PV
- Modules, inverters, mounting and arrays for roofs or ground-mount arrays.
- Battery storage, monitoring systems, commissioning and warranties.
- Installation labour, scaffolding and associated civil works.
EV chargers & electrical upgrades
- AC or DC chargers, charge-management software and OCPP-compatible hardware.
- Distribution board upgrades, transformers, cabling, earthing and civils.
- Grid connection and any necessary reinforcement or planning permitting costs (where fundable).
Heat pumps
- Air-source and ground-source heat pump units, ducting, hot-water cylinders and controls.
- Installation, commissioning, MCS compliance where required, and associated plumbing/electrical work.
What’s typically excluded: unrelated business capex, speculative works without quotes, or costs not clearly tied to the green project. VAT treatment varies — lenders sometimes fund VAT-inclusive costs if you cannot reclaim VAT immediately.
Indicative project sizes (illustrative only): small welfare-unit solar: £5k–£30k; depot EV charger cluster including electrical works: £10k–£120k; multiple heat pumps for modular accommodation: £20k–£250k. These are estimates — speak to a broker to get tailored options.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Types of finance commonly used for green site upgrades
The right product depends on ownership preferences, balance sheet impact and tax treatment.
| Product | Suitability | Pros | Cons |
|---|---|---|---|
| Asset finance / equipment loan | Buying solar, chargers, heat pumps | Ownership, potential tax allowances, flexible terms | May require security; rates vary |
| Green business loan (purpose-specific) | Projects that reduce energy or emissions | Designed for sustainability projects; clear use-of-proceeds | May have stricter documentation |
| Leasing / hire purchase | Keep equipment off balance sheet or conserve capital | Lower upfront cost; predictable payments | No ownership until end of term (HP), potential higher total cost |
| Power Purchase Agreement (PPA) | Solar where you prefer third-party ownership | No upfront cost; provider handles maintenance | Long-term contract for energy supply |
Which is best? For rapid small installs, asset finance or equipment loans are common. For larger, property-linked upgrades, development finance or commercial mortgages may be considered. A broker can compare offers quickly.
Eligibility, underwriting & what lenders look for
Common lender requirements:
- Legal business entity (limited companies and PLCs) with turnover and accounts that support repayment capacity.
- Project quotes from reputable installers with accreditations (MCS, NICEIC, Microgeneration Certification Scheme where relevant).
- Projected energy savings or income estimates (for solar/PPAs), installer warranties and O&M arrangements.
- Management accounts, bank statements, trading history and evidence of contract pipeline for construction firms.
Documents typically requested: supplier quotes, technical specs, business accounts (last 2 years if available), cashflow forecast and proof of identity for directors (depending on security). Preparing these in advance speeds approval.
Costs, terms and risk considerations
Rates and terms vary. Indicative guidance (illustrative only):
Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote
- Interest rates: depend on product, lender and credit profile — from low single digits for very strong borrowers or cheaper green-linked facilities, to higher rates for unsecured or higher-risk profiles.
- Loan terms: equipment loans commonly 2–10 years; property-linked terms can be 10–15 years.
- Security: asset-backed loans, debentures or charges on property may be required; personal guarantees are sometimes requested for SMEs.
Risks: energy savings are estimates — do not rely on guaranteed savings unless covered by the installer. Consider maintenance, replacement costs and grid connection delays. Always get detailed quotes and independent technical advice when necessary.
Actual terms depend on lender assessment and your business circumstances.
Grants, incentives & combining funding sources
Combining grants, tax reliefs and loans can reduce the loan amount required. In the UK there are local authority grants, business support schemes and tax allowances (capital allowances) that may apply. Availability changes frequently — check government resources and Energy Saving Trust for current schemes.
When combining funds, disclose grant amounts to lenders and show how the net project cost and payback change. Brokers can help assemble blended funding packages and advise whether a lender will accept grant-supported projects.
Mini case study: depot solar + EV chargers
A regional construction firm needed to reduce diesel use at a depot and support two electric transit vans. Project: 50kW rooftop solar + 2 x 22kW AC chargers and an electrical board upgrade. Total project cost: £95,000 (illustrative).
Approach: asset finance for equipment (£85k) + short-term bridging to cover grant timing (£10k). Time to quote & match: 24–72 hours after enquiry. Approval & funding: 2–4 weeks with standard documentation. Result: lower fuel bills, reduced CO2 and stronger tenders for clients seeking low-carbon contractors.
How UK Business Loans helps
UK Business Loans connects construction businesses with lenders and brokers who specialise in sustainability and construction finance. Our simple process:
- Complete a short enquiry form with project details.
- We match you to lenders/brokers who understand construction and sustainability.
- Receive free, no-obligation quotes and choose the best offer.
Start your Free Eligibility Check — Get Quote Now
UK Business Loans is an introducer. We do not lend or give regulated financial advice. By submitting your enquiry you’ll receive a free, no-obligation quote from lenders and brokers. Lenders may carry out eligibility or credit checks prior to offer.
For sector-specific borrowing — see our construction support pages on construction business loans for more detail: construction business loans.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Frequently asked questions
- Can I borrow for both installation and maintenance?
- Yes. Many lenders will include installation and initial maintenance or commissioning in the financed amount, provided this is clearly quoted and tied to the green project.
- Are sustainability loans only for new builds?
- No. They fund existing depots, temporary buildings and completed sites as well as new developments — eligibility depends on the project and lender criteria.
- Do I need an energy assessment?
- Many lenders prefer technical specs or simple energy savings estimates, and for solar they may request MCS or equivalent installer accreditation. Preparing an assessment speeds the process.
- How long does approval take?
- Simple asset finance deals can be quoted within days and funded in 1–3 weeks. Larger, property-linked finance can take longer — often 3–8 weeks depending on due diligence.
- Will applying affect our credit score?
- Filling our enquiry form does not affect your credit score. Lenders may carry out credit checks later in the application process if you proceed with an offer.
- What minimum project size do you support?
- We typically handle enquiries from around £10,000 and up. For smaller projects, speak to local installers about leasing or supplier finance options.
Ready to check eligibility?
To get matched quickly to lenders and brokers who understand sustainability and construction projects, complete our short enquiry form now: Get Quote Now — Free Eligibility Check.
UK Business Loans is an introducer. We do not lend or give regulated financial advice. By submitting your enquiry you’ll receive a free, no-obligation quote from lenders and brokers. Lenders may carry out eligibility or credit checks prior to offer.
Related resources & image suggestions
Useful external resources: gov.uk guidance on grants, Energy Saving Trust, Ofgem. Image suggestions (with alt text): “construction-site-solar-panels.jpg” — alt: “Construction site office roof with solar PV panels and site welfare unit with EV charger”; “depot-ev-chargers.jpg” — alt: “EV chargers at a construction depot with vans charging”.
Author: UK Business Loans Content Team — published 2025-10-29.
1. Can sustainability loans fund solar PV, EV chargers and heat pumps for construction businesses?
Yes — sustainability (green) loans and related commercial finance commonly fund site-level solar PV, depot EV chargers and commercial heat pumps, typically from about £10,000 upward depending on project and lender criteria.
2. What types of finance can I use to pay for green site upgrades?
Common options include asset finance/equipment loans, green business loans, leasing or hire purchase, and third‑party Power Purchase Agreements (PPAs) for solar, with development or mortgage finance for larger property‑linked works.
3. What minimum project size will lenders consider for sustainability finance?
Most lenders and brokers handle projects from around £10,000 and up, though exact thresholds vary by provider and product.
4. What documents and installer credentials do lenders usually require?
Lenders typically ask for installer quotes and accreditations (eg MCS/NICEIC), technical specs, projected energy savings, business accounts, bank statements and cashflow forecasts to assess repayment capacity.
5. How long does it take to get a quote, approval and funding?
You can often get matched and quoted within 24–72 hours; simple asset finance may fund in 1–3 weeks while larger, property‑linked deals often take 3–8 weeks for due diligence and completion.
6. Will submitting an enquiry through UK Business Loans affect my credit score?
No — completing our enquiry form does not affect your credit score, although lenders may carry out credit checks later if you proceed with an offer.
7. Can I combine grants, tax reliefs or incentives with a sustainability loan?
Yes — combining grants or capital allowances with loan finance is common, but you must disclose grant amounts to lenders and show the net project cost and payback impact.
8. What interest rates, loan terms and security should I expect for green projects?
Rates and terms vary by credit profile and product — from low single digits for strong borrowers or green‑linked facilities to higher rates for unsecured finance, with typical equipment terms of 2–10 years and possible security like asset charges, debentures or personal guarantees.
9. Do I need an energy assessment or accredited installer to get finance?
Many lenders prefer energy savings estimates and accredited installers (eg MCS/NICEIC) because they reduce technical risk and speed approval, though exact requirements depend on the lender.
10. How does UK Business Loans help me secure sustainability finance for construction projects?
We act as an introducer — you complete a short, free enquiry and we match your project to trusted UK lenders and brokers who specialise in sustainability and construction finance so you receive no‑obligation quotes.