What green projects can I fund? (solar PV, heat pumps, insulation, LED lighting, EVs and chargers, battery storage, waste‑reduction machinery, refurbishments)
Practical guide for UK businesses seeking finance for sustainability projects
Short answer: UK businesses can fund a wide range of green projects including solar PV, battery storage, heat pumps, improved insulation, LED lighting upgrades, electric vehicles (EVs) and chargers, waste‑reduction machinery and low‑carbon refurbishments.
Best Business Loans does not lend directly; we help businesses find lenders and brokers who specialise in sustainability loans and commercial funding options.
Read on for project types, typical costs, finance routes, eligibility pointers and next steps for a Quick Quote or decision‑in‑principle check.
Which green projects are commonly funded and why they matter
Solar PV panels turn sunlight into electricity and are one of the most commonly funded on‑site generation projects for UK businesses.
Battery storage paired with solar helps shift generation into business hours and reduce exposure to peak electricity prices.
Heat pumps replace fossil fuel boilers and deliver energy savings for heating and hot water across commercial premises.
Insulation and building fabric upgrades reduce heating and cooling demand and are frequently bundled with HVAC and heat pump projects.
LED lighting retrofits lower electricity use and maintenance costs while improving lighting quality in operational spaces.
Electric vehicles and chargepoints reduce fleet carbon and fuel costs, and qualify for targeted vehicle/charger funding in some sectors.
Waste‑reduction machinery — such as compactors, balers and material sorting equipment — lowers disposal costs and supports circular economy goals.
Refurbishments that include low‑carbon materials, glazing, controls and smart meters deliver long‑term operational savings and improved asset value.
All these projects typically aim to reduce energy bills, lower carbon emissions and improve regulatory compliance or corporate ESG reporting.
Solar PV and battery storage: what to fund and finance options
Solar PV costs vary with system size and roof complexity; small commercial installs often start from £10,000 while larger rooftop or ground‑mounted systems can exceed £100,000.
Battery storage adds materially to cost but improves self‑consumption and demand charge management, which accelerates payback in many sites.
Funding routes for solar and batteries
Common finance types include asset finance/leases, hire purchase, energy performance contracts, commercial loans and sustainability‑specific loans.
Government incentives and business energy support schemes may reduce net capital outlay or provide capital allowances; eligibility depends on scheme timing and sector.
Some lenders will consider the contract for difference of expected savings and export revenue when underwriting larger commercial projects.
Heat pumps, insulation and building fabric upgrades
Air‑source and ground‑source heat pumps are capital intensive but deliver lower running costs and emissions versus oil or gas boilers.
Insulation upgrades — loft, cavity, roof and external wall insulation — are often lower cost and can be combined with heating upgrades to maximise efficiency gains.
Commercial heat pump projects frequently require pre‑installation surveys and sometimes network consent or planning checks.
Eligible finance options include equipment finance, sustainability loans, energy service agreements and lease arrangements that spread costs over asset life.
Lenders will usually expect details such as projected energy savings, installation warranties, installer accreditation and any maintenance contract.
LED lighting, EVs and chargers: practical funding and case examples
LED retrofits are low‑risk investments with short payback periods in many commercial settings, making them attractive for lenders.
Funding for LED projects often comes via equipment finance, leasing or supplier finance and is frequently packaged with controls and sensors to maximise savings.
Electric vehicles for fleets and commercial use can be financed via vehicle finance, fleet leases, hire purchase or contract hire depending on preferences.
Chargepoint infrastructure may be funded via equipment finance, grants or integrated with fleet funding, and corporate customers often combine charger funding with grid capacity upgrades.
Case example: a mid‑sized distribution business replaced its fleet with EV vans and installed smart chargers funded through a combined asset finance package, reducing fuel bills and qualifying for local grant support.
Waste‑reduction machinery, refurbishments and how to prepare for funding
Waste management equipment such as compactors, balers, shredders or automated sorting lines reduce landfill costs and may qualify as capital expenditure for asset finance.
Refurbishments that improve energy performance — windows, HVAC controls, photovoltaic canopies and smart meters — can be structured under sustainability loans or retrofit funding.
When preparing to apply for funding, assemble clear project documents: quotations, technical specifications, expected energy savings, installation timescales and supplier credentials.
Financial providers will want to see realistic payback models, evidence of installer guarantees and any third‑party contracts (eg maintenance or energy service agreements).
Best Business Loans can match you with lenders and brokers experienced in sustainability finance so you can compare options without contacting numerous providers yourself.
Eligibility, lender expectations and risk considerations
Lenders assess projects on business credit profile, asset quality, expected savings, installation standards and the sector in which you operate.
Smaller, low‑risk projects like LED upgrades or small solar arrays tend to be easier to finance than complex building retrofits that require planning or bespoke design.
Energy savings projections backed by accredited assessors (eg MCS, BBA, BPEC where relevant) improve lender confidence and speed up decisions.
Consider: warranties, performance guarantees, maintenance agreements and third‑party verification as these strengthen applications.
Always disclose other borrowing and existing charges on assets, since these affect security and borrowing capacity for asset‑backed facilities.
Costs, returns and tax incentives to consider
Typical payback periods vary widely: LED projects can pay back within 1–3 years while solar plus batteries often take 5–10 years depending on energy prices.
Capital allowances and tax treatments may be favourable for certain energy‑saving equipment; consult your accountant to understand implications for your business.
Some projects can also qualify for grant funding, business rate reliefs or local energy network schemes that reduce net project cost.
How Best Business Loans can help you take the next step
We match UK businesses with lenders and brokers who specialise in sustainability loans, asset finance and retrofit funding.
Submit a Quick Quote to get a tailored decision‑in‑principle or eligibility check that saves you time and improves your chances of a good match.
For dedicated sustainability lending pathways see our sustainability loans page: https://bestbusinessloans.ai/loan/sustainability-loans/
We only introduce you to regulated and experienced finance providers and are clear about our role as an independent introducer.
Key takeaways
- UK businesses can fund a wide range of green projects: solar PV, battery storage, heat pumps, insulation, LED lighting, EVs and chargers, waste‑reduction machinery and low‑carbon refurbishments.
- Finance options include asset finance, sustainability loans, hire purchase, leasing, energy performance contracts and specialist retrofit funding.
- Prepare detailed project paperwork (quotes, savings estimates, installer accreditations) to speed lender decisions and improve offers.
- Best Business Loans helps match you with lenders and brokers — start with a Quick Quote for a decision‑in‑principle and eligibility check.
Ready to explore funding options for your green project? Get a free Quick Quote now to see which lenders and brokers in our network may be able to help.
Compliance note: Best Business Loans is an introducer and does not supply credit directly. We aim to be clear, fair and not misleading in line with FCA and ASA principles. Any finance offer will be provided by a regulated lender or broker and will be subject to their terms and eligibility checks.