We can provide advice on a range of funding structures for commercial renewable energy projects.
This key part of the commercialisation process can involve different funding options. We offer solutions for clients wishing to mitigate capital risk via a joint venture, clients funding their own project or a combination of both.
Capital Expenditure – CAPEX
The CAPEX required for renewable and low-carbon technologies is variable on a project-by-project basis.
Together with the carbon benefits, the efficiency of generating heat or power at source provides significant savings to businesses.
The CAPEX option allows your organisation to own an energy generating or cost saving asset from day one. CAPEX offers the quickest payback period and the highest level of savings.
Funded
Verde can work with finance organisations that can support your project by offering low rates and extended terms between 5-10 years.
By financing a project over a longer term, we can ensure the energy savings cover the cost of the capital and interest payments, allowing the cash flow to be positive.
On completion of the finance agreement your business will take full ownership of the asset. We can offer an Asset Finance options to fund your Solar PV system.
There are several other options, including Lease Purchase and Lease Hire, which can be discussed.
Power Purchase Agreement – PPA
A Power Purchase Agreement (PPA) allows businesses to buy electricity or heat generated from renewable sources with no upfront or maintenance costs.
This allows your business to save money and reduce your carbon footprint from day one. A PPA is a long-term agreement between Verde and your business. The length of the contract varies between 10 and 25 years.
In simplistic terms, you grant rights to allow Verde to install renewable technology on your site, and your business agrees to purchase energy at a discounted rate as opposed to buying from the grid. A PPA will have a fixed inflation rate, whereas the grid commodity costs can be unpredictable and volatile.
