Finance for PV systems

solgen · Aug 20, 2011

Hi, I have a client wanting to install a 10kWp system on the roof of
a business premises. They want to be the owners of the system to
benefit from the FIT, however, they need the funding to buy the
equipment in the first place. Does anyone know of any zero or low
interest loans that exist. I know that the carbon trust offer funding
for efficiency measures but I don't think that extends to solar PV!

Thanks

SRE · Aug 20, 2011

It does extend to pv but it's not worth bothering with it's so little. Try Co-op or Natwest for green loans

TonyL · Aug 21, 2011

SRE said:
It does extend to pv but it's not worth bothering with it's so little. Try Co-op or Natwest for green loans

If they have good credit and equity in a house, I suspect a mortage would offer the best credit. If they can't get that then they have few options which are both cheap and safe. 5%-6% for a 10 year personal laon should cover it.

A mate has, for many years, succesfully practised what I consider to be a stupendously risky approach; put it on a credit card and grab free balance transfers when they appear. You need balls of steel, utter commitment to paying down the debt quickly with every spare penny, iron discipline in paying the monthly minimum and to not add to your debts still further, faith the Govt won't shaft you on FIT payments, faith that balance transfers will continue (bank and regulatory risks there), no problems with the kit for the 8 or so years of payback. Not for me in a million years

TonyL · Aug 21, 2011

If your customer owns the business, there is a cheap loan route; directors loans. The snag comes in repaying them over the company year end but you can take them out a day or two later. You can cover that with careful timing of dividend payments. Talk to a good accountant