The asset finance funding route gives you instant access to your new commercial energy system and enables you to pay back through savings that are generated by switching to a smarter energy solution.
What is Asset Finance? It’s a flexible alternative to a traditional bank loan.
What are the types of Asset Finance products? Includes Hire Purchase and Lease Agreements.
What are the terms and interest rates? Terms can range from 1 to 7 years with interest rates varying depending on the strength of the borrower’s financial history and performance. Example: - £100,000 over 5 years on monthly repayments = £1,933 p.m.
How does Asset Finance work? The borrowing amount plus interest is repaid back each month and at the end of the term, the asset belongs to the customer.
What are other borrowing features? Potential to cover the full costs of the asset with up to 100% funding and a VAT deferral option and stages payments to facilitate the construction of the asset.
What type of funder do we work with? Work with a large panel of niche lenders who have an appetite for green technology.
By entering into a Power Purchase Agreement, it allows a business to immediately benefit from a deduction in their energy costs and simultaneously achieve their carbon reduction goals with no initial cash outlay.
Commonly known as a PPA. It is a long-term contract under which a business agrees to purchase electricity or heat directly from a renewable energy generator. Example: - Woodford Renewables installs Solar PV panel at their own costs on a customer’s roof. The customer agrees to buy back the energy generated for the Solar PV panels at an agreed price which will be at a discount to their current utility tariff.
Do I need to pay out any installation costs? No, this is all factored in the PPA pricing which is agreed from the outset. All installation costs are paid for.
Who manages and maintain the energy generating asset? This is referred to as an Operation & Maintenance Agreement (O&M) which is factored into the PPA pricing and managed by Woodford Renewables.
How long is the PPA agreement? It varies from 5 years to 25 years.
Who owns the asset? The asset is owned and operated by Woodford Renewables until the end of the agreed PPA term and then ownership reverts to the customer.
What renewable energy assets can be included in a PPA? Any asset that provides energy efficiency measures that lead the way to net zero. Those assets can include LED Lighting & Control, Solar PV, Combined Heat and Power (CHP), Smart Meters and other similar types of assets.
How do I know if I’m eligible for a PPA Agreement? An assessment is made on the strength of the financial history and performance of the business who is looking to take up a PPA agreement.