Restaurants — Business Loans for Sustainability Upgrades (solar PV & energy-efficient kitchens)

Short answer: Yes — many UK business loans and specialist green finance solutions are available for restaurants to fund solar PV, battery storage and energy‑efficient kitchen equipment. UK Business Loans introduces your project to lenders and brokers who specialise in commercial sustainability projects so you can get fast, no‑obligation quotes and a free eligibility check.

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Quick answer / Summary

Yes. UK restaurants can access a broad mix of finance to pay for sustainability upgrades — from equipment finance for ovens and refrigeration to commercial business loans for multi‑site solar installations and specialist green loans that reward measurable energy reductions. Common routes include equipment/asset finance (hire purchase, lease), commercial loans (secured/unsecured), sustainability/green loans, lease or PPA arrangements for solar, and supplier finance or energy performance contracting.

Typical projects we help match start at around £10,000 and above. Submitting an enquiry is non‑binding, free, and won’t affect your business credit score — it simply helps us match you to the lenders and brokers best placed to provide quotes.

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Why restaurants invest in sustainability

Restaurants face high energy costs in kitchens, refrigeration and extraction systems. Sustainability upgrades deliver multiple business benefits: lower utility bills, reduced exposure to energy price rises, improved margins and stronger appeal to eco‑conscious customers. Improvements also support corporate Net Zero commitments and can enhance PR and loyalty.

Typical impacts (illustrative): rooftop solar + battery storage can reduce electricity spend substantially during daylight hours and peak periods; LED lighting and modern refrigeration typically cut energy use by 10–40% depending on the baseline. Exact savings depend on site, equipment and operating hours.

There are also tax-efficient routes such as capital allowances for qualifying equipment, and occasional local or national grant programmes to reduce upfront cost — though grants often require match funding and quicker decisions can be made using loan finance.

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What upgrades can be financed?

Most energy and efficiency upgrades used in restaurants can be funded. Typical items include:

• Solar PV and battery storage — rooftop or canopy panels, inverters and batteries. Finance covers design, installation and sometimes ongoing performance guarantees.
• LED lighting, HVAC and extraction systems — new lighting, efficient ventilation and heat recovery units to reduce extraction and heating costs.
• Energy‑efficient cookline equipment — ovens, combi ovens, efficient fryers and induction hobs designed for lower energy use.
• Refrigeration and dishwashers — modern, high‑efficiency fridges/freezers and commercial dishwashers with water/energy savings.
• Insulation, glazing and fabric works — reduce energy loss and improve thermal performance.
• EV chargers — for staff or customers, often co‑funded with grants or commercial finance.
• Controls and BMS — smart meters, building management systems and energy monitoring that demonstrate savings to lenders.

Projects are often blended — e.g., PV + new refrigeration — and many lenders will consider combined packages. Lender appetite varies by asset type and whether you own the premises.

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Which types of finance are commonly used?

Different finance types suit different project sizes and ownership situations. Common options:

Equipment finance / Asset finance (hire purchase / lease)

What it is: Lender purchases the equipment and you pay over a term (often 2–5 years for kitchen kit). Hire purchase lets you own at the end; finance leases keep the asset off‑balance sheet for some businesses.

Typical size/term: from £10k upwards; terms 2–7 years.

Pros/cons: Quick decisions for standard equipment; preserves cashflow; repayments often match tax allowances. Less suitable for whole‑roof solar projects unless packaged with supplier finance.

Commercial business loans (secured / unsecured)

What it is: Lump‑sum loan to fund larger overhauls. Secured loans (against property or assets) usually offer lower rates.

Typical size/term: from £10k to several hundred thousand; terms 1–10+ years.

Pros/cons: Good for multi‑discipline projects or where you want ownership. Lenders will check company accounts and property ownership/consent.

Sustainability / green loans

What it is: Loans labelled as green may offer better rates or flexible terms if the project demonstrates environmental benefit. Lenders may require evidence of expected energy savings.

Pros/cons: Potentially preferential pricing; requires documented energy case and sometimes monitoring.

Leasing / OPEX models (solar PPA and leases)

What it is: Solar PPAs or leases avoid upfront capex — you pay for power or lease panels. Supplier funds installation and operates system.

Pros/cons: Lower upfront cost, but long‑term payments may exceed CAPEX route; no asset on your balance sheet if structured as OPEX.

Supplier finance / EPCs

What it is: Turnkey installers may offer finance or performance‑guaranteed Energy Performance Contracts that link payments to savings.

Pros/cons: Single supplier responsibility; check terms and guarantees carefully.

Invoice finance / bridging

What it is: Short‑term bridging to cover cashflow while works are completed and grant payments arrive.

Pros/cons: Useful for seasonal businesses or staged projects; costs higher for short‑term facilities.

Practical tip: Lenders typically ask for supplier quotes, expected savings, trading history and accounts. Leasehold businesses may need landlord consent — some funding routes such as PPAs can be less dependent on consent.

Get matched to lenders that fund restaurant sustainability — Get Quote Now

Typical lender/broker requirements & application checklist

To speed the process, have the following ready:

• Company details and trading history (minimum trading period varies — many lenders expect at least 12 months).
• Latest company accounts or management accounts.
• Supplier quotes or a full proposal from installers.
• Landlord consent or lease details if you do not own the premises.
• Energy audit or proposed savings estimate and any EPC (where available).
• Cashflow forecast showing loan repayments vs. savings.
• Identification and proof of business address for directors authorised to act.

Timescales: initial matching and feedback is often within hours; lender decisions typically take days to a few weeks depending on complexity. Submitting an enquiry does not affect your credit score; lenders may perform checks later if you apply.

Grants, incentives and tax considerations

Grants, local incentives and tax measures can reduce the amount of loan finance needed. Relevant supports may include:

• Enhanced Capital Allowances and certain capital allowances on qualifying equipment.
• Occasional local authority grants or low‑interest funding for energy projects.
• Business rates relief in certain circumstances for energy saving improvements (check current guidance).

Grants usually require application and may need match funding; lenders will want to know if grant funding is confirmed. Always check gov.uk and HMRC guidance or speak to your accountant for tax treatment specific to your business.

Need help with costs & grants? Free check with lenders/brokers

Choosing the best finance route for your restaurant

Which route suits you depends on:

• Premises ownership — owners have more funding options than leaseholders.
• Project size — small equipment purchases often suit equipment finance; multi‑site PV installs may suit a blended sustainability loan and supplier finance.
• Cashflow and appetite to own vs lease — do you want to own the asset or prefer a lower upfront cost?

Mini case studies:

• Independent café (single site): Replaced older fridges and installed LED lighting using equipment finance over 3 years. Monthly repayments matched projected energy savings.
• Regional restaurant group (three sites): Installed rooftop PV across sites using a sustainability loan for capex, combined with supplier performance guarantees and a long‑term maintenance contract.

Compare total cost of finance (interest + fees), early repayment terms and whether the lender requires security. Getting multiple quotes helps you negotiate the best package.

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How UK Business Loans helps

Our process is designed for speed and simplicity:

1. Complete a short, secure enquiry form (takes around 2 minutes).
2. We match your project to lenders and brokers in our panel who specialise in restaurant and sustainability finance.
3. Partners contact you with quotes and options — you compare and choose. There’s no obligation to proceed.

We focus on practical matching and saving you time. We only introduce businesses for projects from about £10,000 upwards and only share your details with partners suited to your request.

For more industry‑specific guidance on loans and finance for restaurants see our industry page on restaurants business loans.

restaurants business loans

FAQs

Can I get a loan for solar if I lease my premises?

Possibly. Many funders require landlord consent for rooftop solar if you’re a leaseholder. Alternatives include solar PPAs, leases or supplier finance that may reduce the need for landlord consent. Provide your lease and supplier proposals so lenders can advise.

Will a sustainability loan reduce my rates or taxes?

Potentially. Some energy‑saving improvements can affect business rates or qualify for capital allowances — this varies by location and equipment. Check HMRC guidance and speak to an accountant for tailored advice.

Do lenders require an EPC or energy audit?

Some lenders or green loan products ask for an energy audit or EPC to quantify savings; others accept supplier proposals and projected savings. Having an audit speeds decisions and can open better terms.

Can I combine grants and loans?

Yes. Grants often reduce the loan amount required, but lenders will want clarity on whether grants are confirmed or conditional.

How long before energy upgrades pay for themselves?

Payback varies widely: LED and controls often pay back in 1–3 years; refrigeration 3–6 years; solar PV payback can be 5–10 years depending on export, consumption and incentives. Use realistic supplier figures when modelling payback.

Does applying affect my credit score?

Submitting an enquiry through UK Business Loans doesn’t affect your credit score. Lenders may run credit checks later if you proceed with an application.

Still unsure? Talk to a specialist broker — Free quote

Next steps

Ready to explore finance for sustainability upgrades? Here’s what to do next:

1. Click Get Quote Now and complete the short enquiry form (about 2 minutes).
2. We match you to suitable lenders and brokers and share your details securely.
3. Receive quotes and discuss next steps directly with lenders — no obligation to proceed.

We only introduce requests for projects of approximately £10,000 and above. Your enquiry is free and non‑binding.

UK Business Loans is an introducer and not a lender. We do not provide regulated financial advice. We match your enquiry with vetted lenders and brokers who may contact you with quotes. Any finance offer will depend on your business circumstances. For our privacy policy and terms, please see the site footer.

– Can I get a UK business loan to fund solar PV and energy‑efficient kitchen equipment for my restaurant?
Yes — UK business loans and specialist green finance (equipment finance, sustainability/green loans, commercial loans, leasing and solar PPAs) commonly fund restaurant sustainability upgrades.

– What types of finance suit restaurant sustainability projects like PV, batteries and new refrigeration?
Common options include equipment/asset finance (hire purchase, leases), commercial business loans (secured/unsecured), sustainability/green loans, supplier finance or EPCs, and solar PPAs/leases.

– How much funding do lenders typically consider for these upgrades?
Most lenders we work with consider projects from around £10,000 upwards, with larger sustainability loans available for multi‑site projects.

– Will submitting an enquiry for a quote affect my business credit score?
No — completing UK Business Loans’ free eligibility check and enquiry form does not affect your credit score; lenders may run checks only if you formally apply.

– Do I need landlord consent if I lease my premises and want rooftop solar?
Often yes — many funders require landlord consent for rooftop PV on leasehold premises, though PPAs, leases or supplier finance can sometimes avoid direct consent requirements.

– Can I combine grants, tax reliefs and loans to reduce upfront costs?
Yes — grants and capital allowances can reduce the loan amount required, but lenders will want to know whether grant funding is confirmed or conditional.

– What information will lenders ask for when assessing eligibility for sustainability finance?
Typical requirements include company details and trading history, recent accounts or management accounts, supplier quotes/proposals, lease or landlord details, an energy audit or savings estimate, and ID for directors.

– How quickly will I be matched to lenders and receive finance quotes?
UK Business Loans usually matches enquiries to lenders within hours and you can expect lender decisions in a few days to several weeks depending on complexity.

– Are sustainability or green loans cheaper than standard business loans?
They can be competitively priced or offer better terms if you can evidence measurable energy savings and meet the lender’s green criteria, though requirements and pricing vary.

– How does UK Business Loans help and is the enquiry the same as applying for finance?
UK Business Loans is an introducer that matches your enquiry to vetted lenders and brokers for free, and the short enquiry form is not a formal application but a way to get no‑obligation quotes and a free eligibility check.