Funding Options
Funding Options
Funding Methods For Farmers
Solar panels are a significant but worthwhile investment for any farm. With a host of funding options available, there has never been a better time to move into renewable energy. The most popular funding methods for farmers today are:
- Loan: Fully funded installations using a business loan.
- DEFRA Grants: Dedicated help for farmers.
- Annual Investment Allowance: Save over £100,000 in tax.
- Existing Capital: Pay for an installation in full.
On this page we will guide you through the financing options for agriculture solar panel installations. If you are unsure which option is best for you, please contact us via the form at the bottom of this page.
1. Loan: Fully Funded Solar Panels Are Here!
Impact Services has partnered with three leading finance providers to offer fully funded solar panel installations to our commercial customers.
Whether your loan is credit or asset based, it is possible to use the energy savings from your panels to cover the repayments. This allows you to benefit from a solar panel installation without the need for any upfront capital.
Try our calculator below to see example costs and returns of choosing a loan to cover the cost of your installation. All figures have been created using MCS-Approved calculations.*
2. DEFRA Grants
DEFRA Grants are continuously being released to help support farmers adopt renewable technology. We keep a close eye on the latest grants available, so please get in touch to explore which options are available to you. The grants often cover a percentage of the installation, but you will need the costs and projected energy savings to apply. Getting a quote is therefore the first step in any DEFRA application, as you will find all the necessary information within the quote to apply for the grants.
3. Annual Investment Allowance (AIA)
You can deduct 100% of the cost of installing solar panels from your pre-tax profits by utilising your Annual Investment Allowance (AIA). This strategic move can result in substantial tax savings. For example, a farming partnership with profits of £500,000 that spends £215,000 on solar panels will only pay tax on £285,000 of their profits. Depending on their marginal rate of tax, this would save them up to £100,000 in tax (£215,000 x 47%) the next financial year.
4. Existing Capital
Opting to pay outright with existing capital continues to be a viable funding method. This approach significantly expedites the installation of your solar panel system, allowing you to start reaping the rewards of free electricity much sooner.
*Based on 50% Consumption and 50% Export using electricity savings at 30p/kW, and export of 8p/kW.
Choosing A Funding Method
We advise all farmers considering solar panels to first obtain a quotation.
From there, your accountant or tax advisor will be able to choose the funding option that best aligns with your unique financial situation.
It may also be possible for you to combine funding options, such as the DEFRA grant and your Annual Investment Allowance, making solar panels an enticing investment and a financially astute choice!
If you have any questions, please contact us and we’ll be happy to help.
Our Funding Partners
Credo Capital Finance
Credo Capital Finance has been helping local SMEs finance the equipment their business needs since 2005. As part of Star Asset Finance group, a country-wide specialist in Asset Finance, the focus on a bespoke level of service for their customers is paramount.
Credo pride themselves on always doing what they say they are going to, with a refreshingly positive attitude. We’ve got access to a whole-of-market panel of lenders, which enable us to organise funding in all sectors; agriculture, construction, haulage, manufacturing & wider business services such as IT & communications.
One of our main aims is to create long-lasting relationships where we work closely with customers to provide a one-stop solution to handle the funding of the assets of their business.
Please contact Lewis Buckley, Business Development Manager on 07841 486893 lewis.buckley@credoassetfinance.com to make contact and discuss your funding requirements on your Impact Services project.
Finance introductions can only be made for an un-regulated finance product. Available for UK-registered Limited companies and LLPs or sole traders and partnerships where the total amount finance is over £25,001. Business customers only. Subject to status and affordability checks. Terms and conditions apply.
Nova Financial Services
As an independent finance brokerage, customer service is always our number one priority. Remaining truthful and transparent throughout the process builds trust and rapport, which we strongly believe allows you, as a customer to remain happy with the service you receive.
Our mission as a brokerage is to form relationships with our customers, providing simple, flexible finance solutions to meet your needs.
Nova Financial Services aims to provide you with a tailored finance package, whilst remaining diligent and efficient throughout to ensure the process goes smoothly, investing time in a business relationship. Whether you want to keep your payments fixed monthly to maintain your business cash flow or choose a structured payment plan to suit your seasonal trading periods, there are plenty of options on offer to suit you.
We are proud to support UK businesses to encourage business growth through the correct financial products when purchasing their assets, keeping customer service, integrity, innovation, and excellence our top priorities.