As more UK businesses work towards their sustainability goals, renewable energy has become a core focus for reducing costs, improving energy independence, and meeting environmental commitments. While the long-term benefits are clear, funding renewable projects can be complex which is where Bluestone’s expertise comes in.

With almost 30 years of experience helping organisations finance everything from solar panels to EV charging infrastructure, we’ve seen first-hand how the right funding structure can help unlock opportunity and accelerate the transition to cleaner energy and lower energy costs.

We sat down with one of our Key Account Managers, Mark Johnston, to provide some insight. Mark has been with Bluestone for 15 years and in that time, has worked with many businesses looking to finance their own renewable energy projects, or offer finance solutions to their customers for their renewable energy assets.

Which sectors are leading the way?

In recent years, we’ve seen significant renewable uptake across manufacturing, education, and logistics sectors with high energy usage and clear sustainability mandates. Schools and colleges are also increasingly investing in renewable projects such as solar panels and LED lighting – this is driven by the dual goals of reducing costs and setting a positive example for future generations. However, any business running large plant and machinery is particularly leading the way in moving to renewables, as energy efficiency has a direct impact on operating costs.  

What types of renewable projects are businesses funding?

In my experience, solar remains the most popular renewable investment for UK businesses, driven largely by cost savings and uncertainty over future electricity costs. We’re also seeing more of a demand for energy-efficient lighting, heat pumps, and EV charging infrastructure. Organisations often start with one project (like solar,) then expand their efforts once they see the cost savings and payback period in action.

Battery storage is also a hugely expanding market, with larger green energy installations. This allows businesses to store excess energy and improve their self-sufficiency. Demand is currently dominated by solar projects, with battery storage increasing rapidly as technology and affordability improve.  

For example:

Solar panels: £59,600 project, quarterly finance cost £2920 (based on 7 years), saving £3,811 per quarter which means a positive cashflow of £891 per quarter

EV chargers: £2,041 project, £67 monthly lease (3-year lease), saving £158 a month.

LED lighting: £75,000 project, £4800 per quarter (5-year term), saving £6212 which means £1412 positive each quarter.

Why are businesses choosing to invest now?

The primary drivers are cost and control. Energy prices remain unpredictable, and renewables offer businesses a degree of independence and long-term stability.  Sustainability goals and environmental targets also play a growing role, particularly for organisations working within supply chains that require proof of carbon reduction.

What finance solutions are typically used for renewable energy projects?

Hire Purchase is definitely the most common choice with the majority of renewable projects being financed this way. Businesses choose hire purchase agreements because it allows them to spread the cost of the investment, while owning the asset outright. You can read more about using hire purchase for solar panel projects here.  

What are the misconceptions about renewables finance?

A common misconception is that renewable energy projects require large upfront capital outlays. However, finance allows businesses to spread costs over time, preserving working capital and often achieving savings. Another misconception is that the process is lengthy or complicated, but with the right partner, finance can be arranged within days once the project proposal and supplier information are in place.

What support does Bluestone provide?

We work directly with both customers and the renewable technology suppliers to build a finance solution that meets the projects and businesses objectives. We’ll help identify suitable funders, prepare the necessary documentation, and manage the process from first enquiry to funding approval.

What are the benefits of using finance for renewable energy projects?

Using finance for your businesses renewable project offers multiple benefits including:  

• Preserve your working capital, you’re able to invest in your renewable project without tying up cash reserves.  

• Spread the cost and risk, when distributing the cost of the project means that the financial burden of the large upfront cost is mitigated, reducing exposure to risks.  

• Significant tax benefits, many areas offer tax incentives and credits for businesses that adopt environmentally friendly initiatives.  

Finance gives your business flexibility, you can control costs, see savings sooner and retain ownership of the project once paid off. It’s a smart way to make renewables work financially and environmentally.

What are the considerations of using finance for renewable energy projects?

While using finance does offer benefits, businesses should always take caution and be aware of some key considerations.  

• Interest and fees, while interest will be fixed and covered in your repayment schedule it is important to be aware that you will be paying interest and fees.

• Legal obligations, finance is a fixed financial agreement meaning that you have a legal obligation to make the payments in full and in a timely manner.

• Terms and conditions, it is essential that you fully understand the obligations and terms before entering into a finance agreement, our account managers can help with questions you may have in this period.  

Real-world results

Beamish golf club in Durham were considering investing in solar panels as their fixed-year contract was coming to an end. Their unit rate would be increasing from £.14 a unit to £0.70 a unit, meaning their overall cost would be an annual increase of £12,000 a year to £70,000 which was simply unsustainable.  

The team at Beamish golf club knew that solar panels would be a long-term solution to this issue, but the upfront cost of the project was too high. Beamish golf club found when looking for finance that it was not a straight-forward process to access finance for solar panels due to the asset type and wanting to use staged-payments. This is where Bluestone came in. We worked with them to understand their issues and long-term goals and were able to provide them with a bespoke finance solution for solar panels that worked for them and were able to meet all their objectives.  

This meant that Beamish golf club went from paying over £5,000 a month to £1,200 to British Gas, with the finance of the solar panels included in this they were paying £2,000 a month for their energy giving them a £3,000 per month saving instantly.  

Funding renewable energy for your business

Bluestone is an ethical and FCA-regulated finance intermediary. We are committed to ensuring that our clients make informed financial decisions based on their requirements and always recommend that our clients seek independent financial advice from an authorised source before committing to any financial agreements.  

If you would like to explore finance solutions in more detail, get in touch using the enquiry form below, or contact us here. One of our friendly and experienced team will be in touch as soon as possible.

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