Finance

There are a range of finance options and incentives to allow you take advantage of the benefits of our energy efficiency measures without it costing the earth. After all, we’re all about saving money!

Power Purchase Agreements

A power purchase agreement (PPA) from Beco Energy Solutions offers homeowners, businesses and community organisations the opportunity to benefit from cheaper electricity and stable, predicable energy costs without any capital investment.

A PPA will give you a free, fully maintained solar PV system on your roof for 20 to 40 years and allow you to purchase generated electricity up to 50% cheaper than your current energy supplier.

For clients, PPA’s offer:

  • Price security; stable, predictable energy costs for a flexible, defined period
  • Security of supply
  • Zero investment in non-core assets
  • Zero initial capital expenditure or operating and maintenance costs
  • In addition, for clients that wish to build their own renewable generation plants, we offer the full range of consultancy plus engineering, procurement and construction (EPC) services.

 

Energy Efficient Finance

For businesses and community organisations, our energy efficient finance offers the opportunity for you to reap the benefits of the feed-in-tariff (FIT) whilst conserving working capital.

Financing model

As a Recognised Partner of the Energy Efficiency Financing scheme from Siemens Financial Services and the Carbon Trust, we can provide funding to cover the full cost of the project and installation from as little as £1,000 over a maximum 7 year term.

This innovative funding is designed so that the finance payments can be offset against the anticipated energy savings, which means the equipment should pay for itself. In addition, the payments can be deducted from taxable profits (depending on individual circumstances), reducing the net cost of the project.

The result is a flexible solution, which allows easier budgeting and affordable payments that aren’t subject to fluctuations in interest rates.

We also offer a Direct Debit payment option to make the scheme ultra simple, easy and convenient.

Benefits

  • Conserves working capital – Energy Efficiency Financing gives you the flexibility to conserve your existing working capital for other business projects
  • Convenient and fast – you can arrange finance directly through Beco. We manage the application process on your behalf and the completion of all documentation. It’s that simple!
  • Affordable now – the finance payments are offset against the anticipated energy savings, which means the equipment should pay for itself. This allows you to install the equipment you need straight away – and once you’ve completed the finance agreement you should continue to make savings year-on-year
  • Flexible – Energy Efficiency Financing is designed so that anticipated energy savings match or exceed the finance payments. Affordable payments are tailored to suit your circumstances and can be arranged over terms from 1 to 7 years
  • Easier Budgeting – payments are fixed and therefore not subject to fluctuations in interest rates, which means easier budgeting
  • Maintains existing credit lines – any existing credit lines you may have with your bank remain intact, to be used by you in the future if necessary
  • Tax efficient – finance payments may be offset against tax, depending on individual circumstances

 

Annual Investment Allowance

Did you know that you can offset up to £100,000 in tax when investing in energy technology through the Government’s Annual Investment Allowance (AIA) scheme?

The AIA was introduced by the Government in 2008 to driving business growth. The scheme is a capital allowance incentive allowing your company to invest up to £500,000 in plant or machinery by the end of 2015 with the benefit of 100% corporation tax relief.

For example, if your company pays 20% corporation tax, you can offset up to £100,000 in tax on large investments in the first year.

Why use AIA for energy technology?

Many companies are unaware that renewable technologies, such as solar PV and LED lighting, can be purchased using your AIA.

A solar PV system will allow you to convert unused roof space into a micro generation plant for free green electricity for your company; reducing your energy bills and your carbon footprint. Once you combine all the different elements; the offsetting of up 20% of costs, energy bill savings and income from the government feed in tariff (for any excess electricity you produce) the move to solar PV makes sound business sense.

Solar PV AIA example

A company purchasing a solar PV system at a cost of £250,000 would be able to off-set £50,000 of the cost against pre-tax profits (assuming the company paid 20% corporation tax). In addition to the above, a typical 250 kWp system could generate around £20,000 in feed-in tariff payments each year, in addition to saving the same amount on energy bills if all generated electricity was used.

Find out more

To find out more about how your organisation can benefit from the AIA, contact your Chartered Accountants and Business Advisors to discuss your eligibility and how to apply.