Although there are many small and medium businesses that would be interested in the installation of solar panels or biomass boilers, the difficulty in obtaining finance is causing these companies to delay in making anything more than tentative enquiries. The word that the UK may be heading back towards a further recession isn’t doing anything to steady the nerves of small businesses. The extremely high gas and electricity charges that have been major concerns to large number of business owners is attracting them towards green technology but unfortunately in a considerable number of cases their local banks haven’t been able to assist in providing the finance required.
ReEnergise Finance is a new Cheshire based company which has been formed in order to assist businesses which are having difficulty in obtaining bank finance for renewable energy and energy efficiency projects. It currently has links with ten non-mainstream banks to help companies which are struggling to obtain the finance required for improvements and installations which are a part of the government’s Green Deal.
Businesses which want to borrow between £75,000 and £5million will be directed towards the banks to enable them to benefit from the renewable energy and microgeneration sector as the major problem faced by many small and medium businesses is the lack of availability of bank loans.
One of the directors of ReEnergise Finance, Adam Hewson, who was previously a GE banker, has said that the new company is already dealing with a number of schemes including biomass installations, and anaerobic digestion and large-scale photovoltaic projects. Mr Hewson also commented that a partnership had just been formed with Panasonic Europe’s solar division in order to assist their clients to find funding. Mr Hewson continued by stating that ReEnergise Finance had the expertise to obtain the best financial deals for green energy projects. He said “In an environment where banks are restricted and reluctant to lend against what is perceived as new technology, there is a need for a specialist intermediary, in particular for commercial projects under the £10m mark.”
Mr Hewson continued “In reality, finance is available in the UK for renewable energy; the trick is finding it and working with a partner that will get you the right deal. Government schemes are available but you have to have already invested in energy efficient equipment to qualify. We’re offering businesses the chance to do that, what we see as the final piece in the energy puzzle.”
Domestic Finance
ReEnergise Finance are also preparing the launch of domestic finance in June 2012, before the government’s Green Deal commences. They anticipate becoming a Green Deal provider. Some details still need to be finalised including the length of time homeowners will have to repay their loans. There are some months before the Green Deal commences in October 2012 and during the intervening months there will be much more information which will become available.
