Can sustainability finance cover installation, design, surveys and project management costs as well as equipment?
Short answer — and what this page covers
Yes — many sustainability finance products can fund more than just equipment, including design, surveys, installation and project management, but availability depends on the lender, the product and your project structure.
This article explains which finance types commonly cover non-equipment costs, typical lender requirements, practical steps to increase approval chances, and how Best Business Loans can help you find suitable providers.
Which sustainability finance products commonly include wider project costs?
Green loans and sustainability loans
Many green or sustainability loans are designed to fund whole-project costs rather than only hardware. Lenders often accept capital expenditure lines that wrap design, installation and professional fees with equipment purchase.
Eligibility and permitted costs vary, so you should check lender lists and the loan agreement details before assuming all costs are covered.
Energy performance and retrofit finance
Retrofit finance and energy efficiency loans commonly allow surveys, energy assessments and project management fees to be included as part of the total project budget. These products recognise upfront soft costs are essential to deliver verified savings.
Some lenders will require evidence that these costs lead directly to measurable energy savings or PAYBACK projections.
Asset finance and leasing
Asset finance and operating leases usually fund physical equipment rather than professional fees, but customised packages from brokers or specialist lenders can sometimes bundle installation and commissioning costs.
Where installation is inseparable from the asset (for example fixed solar PV), lenders may accept the full installed cost as security for the finance.
What do surveys, design and project management mean for lenders?
Soft costs vs hard costs
Lenders typically separate “hard” costs (equipment, hardware) from “soft” costs (surveys, design, consultant fees and project management). Risk appetite and underwriting rules determine whether soft costs are included.
Some sustainability lenders accept a portion of soft costs as eligible expenditure when they are necessary to deliver the stated environmental benefit.
Evidence and outcomes lenders want
Underwriters often ask for evidence that soft costs are essential to the project and will result in energy savings, carbon reduction or revenue generation. Common documents include proposals, energy models, professional invoices and contractor contracts.
For larger projects lenders may require independent technical due diligence or a certified energy performance forecast from an accredited assessor.
Security and cost allocation
Lenders evaluate what secures the loan: an asset-backed facility will more readily accept capitalised installation if the installed asset can be valued or recovered. Unsecured loans may be more restrictive on soft cost inclusion.
Clear allocation of costs in the project budget and contracts helps underwriters decide what portion of the loan covers non-equipment costs.
Practical requirements and documentation lenders typically request
Commonly requested documents
Expect to provide quotes and invoices from installers, design consultants, and surveyors, plus a final project specification that shows how soft costs relate to outcomes.
Energy savings estimates, supplier warranties, installation schedules and proof of planning or grid connections (where relevant) are also commonly required.
Project management and contracting
Lenders want clarity on who manages delivery and who bears warranty responsibility. A single main contractor with clear responsibilities makes underwriting simpler.
Where multiple contractors are used, evidence of coordinated project management and a contract that ties outputs to payments helps lenders accept the budgeted soft costs.
Eligibility checks and credit criteria
Sustainability finance providers will assess business cashflow, credit profiles, and the projected savings or revenue that justify the investment. These checks influence how much of the total project cost they will fund.
If soft costs push the loan amount high relative to expected savings, some lenders may reduce the funded proportion or require additional security.
How to structure projects so finance can include soft costs
Itemise the budget clearly
Prepare a detailed cost schedule separating equipment, installation, design, surveys and management fees. Clear line items make it easier for lenders to identify eligible costs.
Where possible, tie soft costs to direct delivery milestones and tangible outcomes, such as “site survey — required to confirm inverter sizing for 50 kWp solar array”.
Use accredited providers and recognised standards
Working with certified installers, accredited energy assessors or recognised green certification schemes (for example Green Deal ALM-like frameworks, MCS for renewables or ISO-based documentation) improves lender confidence.
Lenders prefer suppliers with warranty support and insurance that cover commissioning and performance shortfalls.
Consider staged financing
For larger projects, stage the finance: an initial tranche for surveys and design, followed by drawdowns for equipment and installation after milestone sign-off. This reduces lender exposure to speculative soft costs.
Staged drawdowns are common in construction-style sustainability projects and make approval simpler when some soft costs are unavoidable early in the project lifecycle.
Next steps, risks, and how Best Business Loans can help
Common risks and mitigations
Risks include lenders excluding soft costs, higher interest for unsecured funding, or funding caps tied to projected savings. Mitigations include providing detailed evidence, using asset-backed facilities where possible, and seeking specialist lenders experienced in sustainability projects.
Using competitive quotes and clear contracts reduces ambiguity and increases the likelihood that professional fees will be accepted as part of the financed sum.
How Best Business Loans helps you find suitable finance
Best Business Loans does not provide loans; we match UK businesses with lenders and brokers experienced in sustainability and retrofit finance. Our AI-driven Quick Quote identifies which provider types are likeliest to accept soft costs alongside equipment.
Start here for solutions and eligibility checks: Sustainability loans. Submit a Quick Quote to see whether your project budget can include design, surveys, installation and management fees.
Call to action
If your project needs to capitalise installation and professional costs as part of a green investment, complete our free Quick Quote for a rapid eligibility check and introductions to relevant lenders or brokers.
It’s a no-obligation way to understand your options faster and with less paperwork than contacting lenders individually.
Author and credibility
About Best Business Loans — We are an independent UK introducer that uses AI and market expertise to match established businesses with appropriate finance providers. We do not lend or provide regulated investment advice, and we do not charge for initial matching services.
For compliance: Best Business Loans is not an FCA-authorised lender; we aim to present clear, fair and non-misleading information and to connect you with providers who meet regulatory standards for their products.
Key takeaways
- Many sustainability finance products can include installation, design, surveys and project management, but acceptance varies by lender and product.
- Provide clear evidence linking soft costs to deliverable energy or revenue outcomes to increase approval chances.
- Using accredited suppliers, staged drawdowns and detailed budgets makes lenders more likely to include non-equipment costs.
- Best Business Loans can help by matching your project to lenders or brokers likely to fund full installed costs — start with a Quick Quote.