Manage the risk when going green. These are the top 5 renewable assets you can finance
21 Jun 2021
For so long, we have been discussing climate change and the need to do something about it at a global and national level. However, up until recently, businesses have not really considered their own impact and what they can do to make a difference.
Why is now the time to start making the change?
1. The climate change discussion will not go away
The climate change agenda is one of the key priorities for this Government – pledging a reduction in annual emissions by 80% over the next 14 years – and the climate has dominated in this month’s meeting of the G7 nations.
The discussion is not going away, and businesses will no doubt be expected to make changes in the coming years. This could be purchasing a new fleet of electric vehicles or new technologies to reduce emissions when producing energy.
2. Post-pandemic opportunities to work differently
As the economy begins the long journey to recovery following the pandemic, businesses across the world are being presented with a unique opportunity to try something different. To operate in a greener and more sustainable way.
We all have a responsibility to make a change, but an increasing number of customers are also checking the social responsibilities of a business before making business decisions. If your business is still burning high levels of fossil fuels and emitting high levels of pollutants, customers might decide to shop elsewhere.
Rather than reverting to a pre-pandemic way of working, you could use this re-set as an opportunity to work smarter, to work cleaner.
3. Manage the risk and use asset finance for renewable assets
As always, there will be an element of risk that comes with making a change to business. It is somewhat a venture into the unknown for many businesses, but you can use asset finance to invest and manage your cashflow at the same time.
By using the renewable asset as the security, hire purchase and lease purchase opportunities offer your business full ownership of the asset at the end of the repayment agreement. Repayments can be monthly, quarterly, or annually and can even be structured to suit your business’s cash flow cycle.
A view from the experts...
“Going green and climate change is currently one of the most pressing issues of our time. In fact, Joe Biden has recently committed to slashing US greenhouse gas emissions by 50% by 2030 - nearly doubling its previous target. This sends out a huge statement to the rest of the world. Going green has come into sharp focus over the last year or two and, as a result, companies are looking at cleaner ways of doing business. Custom Business Finance is committed to supporting sustainable energy projects via the many funding partners we work with.” - David Catling, Executive Director.
At Custom Business Finance, we are delighted to support businesses to go green and, via our funding partners, can help find you the perfect deal.
Here are our top 5 examples of assets you can invest in:
- Biomass plants – burning natural waste material to generate power, this can be used to generate electricity, heat, or biofuels (such as biodiesel).
- Combined heat and power (CHP) – a technology that generates electricity and captures the heat that would otherwise be wasted to provide useful thermal energy, this energy can then be used for things such as space heating, cooling, domestic hot water, and industrial processes.
- Solar photovoltaic (PV) – this is the generation of electricity using energy from the sun in the main form of solar panels.
- On shore wind turbines – this technology uses the power of the wind and generates electricity, onshore wind turbines are usually installed in an area of low conservation and habitat.
- Air, ground & water source heat pumps – these technologies use pipes to extract heat. This heat can then be used to heat radiators, underfloor or warm air heating systems and hot water in housing.
To find out more information about investing in going green and the financial opportunities open to help you do so, contact us now.
0114 442 8008