Asset Finance for wind turbinesPublished on 7th January 2019 2019-01-07T12:00:00+00:00 - Last update on 10th January 2019 2019-01-10T12:27:45+00:00
As a business owner, you’re in no doubt looking for more ways to reduce your monthly outgoings and use the money elsewhere for investment. But as well as exercising shrewd financial planning and staying within your budget, you could reduce energy bills by installing a wind turbine. More UK businesses are looking for ways to use renewable energy and reduce their carbon footprint (after all, this could be a great selling point for your business alone), and one way to do so is by installing a wind turbine and harnessing the energy in your business. The trouble is that installing a wind turbine isn’t always straightforward and you may lack the necessary capital to proceed with the project. But if you possess a sufficient amount of land and want to take advantage of harnessing clean renewable energy, applying for Asset Finance could be the solution you need to get this project moving.
Why should I build a wind turbine for my business?
If you’re looking for a great way of lowering your business’ energy bills, deciding to build a wind turbine for your business could be the way to go. And why not? Wind is a resource that Britain has in great abundance, depending on where you’re located. And being an endless clean source of energy, the potential for making savings is literally blowing over your head, should you decide to make use of it. Plus, thanks to technological advancements in this area, onshore wind turbines are also becoming more efficient than ever before, and are continuing to do so.
In addition, if you have any surplus energy that your business isn’t using, you could decide to sell this energy back to the National Grid or your energy provider under the Feed-in Tariff (FIT) scheme. Therefore, as well as saving your business money, it could also be used to generate an income. Just remember that if you are intent on building a wind turbine for your business and sell surplus energy, the equipment must be fitted with an accredited Ofgem generation meter and you’ll also need to form an agreement with your Distributed Network Operator. For further information about the Feed-in Tariff (FIT) scheme, you can read more here.
What Asset Finance solutions are available to help build a wind turbine for my business
Naturally, as well as investigating whether you need planning permission, you need to be aware that building a wind turbine for your business can be expensive. As such, this is a decision that must be made carefully. But if you are intent on building a wind turbine for your business and reaping the benefits, you don’t need to carry the costs involved all by yourself. By applying for Asset Finance, you could gain access to a variety of finance solutions to enable you to spread out these costs, easing the strain upon your finances. So with the aid of Asset Finance, you could apply for either: Hire Purchase, Leasing or Asset Refinance.
If you’re looking to acquire a wind turbine for your business, as well as any other relevant equipment, and eventually gain ownership, choosing to apply for Hire Purchase could present you with an appropriate way forward. This product works by the lender purchasing the wind turbine from a trusted supplier and granting you full access to it after you’ve paid the Initial Deposit. This involves the wind turbine’s full VAT and an agreed percentage of its total purchase price, which is subject to negotiation. Once paid, you can begin using the wind turbine and generating energy for your business whilst making Fixed Monthly Repayments across an agreed term that could last up to 5 years, plus interest. When the agreement has matured, with all relevant payments resolved, ownership is then transferred to your business.
However, if you don’t want to own the wind turbine and any of the facilities or accessories that come with it, applying for a Leasing agreement could be a useful alternative. With a lease, you’re simply borrowing the wind turbine for a period of time (the term) and are not considered the owner at any point in the agreement. In exchange for having access to the wind turbine, you’ll be expected to make Fixed Monthly Rental Payments over an agreed term, plus interest. The available term usually lasts up to 5 years, but some leasing providers may offer 7 year agreements if the wind turbine is particularly expensive. Plus, once the agreement on the wind turbine has matured, you can either return the equipment, extend the lease or upgrade to another model.
Finally, if you own any unencumbered assets such as equipment, machinery or vehicles that aren’t fixed into the structure of your premises, you could release up to 100% of the equity held within one or more of your assets to generate a lump sum. Because the lump sum usually isn’t subject to any usage restrictions, you can use these funds to support the upfront purchase and installation of the wind turbine. In addition, Asset Refinance also uses a Fixed Monthly Repayment scheme and offers terms lasting up to 5 years plus interest, making the cost of the wind turbine more affordable.
Thinking about building a wind turbine for your business?
If you’re looking for a way to generate free energy and lower your energy bills, choosing to construct a wind turbine for your business may prove beneficial. However, it’s a decision that needs to be made carefully, with all the facts to hand. But if you do believe that building a wind turbine could save your business money in the long run, there plenty of finance solutions available which could help you achieve your goals. All you need to do is source the most appropriate finance solution, which is where speaking with a qualified business finance professional can prove helpful.
At Rangewell, we’re an Access to Finance specialist and have mapped over 400 lenders to offer you a complete overview of more than 23,000 business finance products. Our services are free to use and we’re also on hand to guide you through the application process. So if you’re thinking about building a wind turbine for your business but are worried about the expense, apply for Asset Finance today or find out more with Rangewell.
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