Can I Get Financing Options for ESG Solar Panel Installations?

Yes. Property owners, landlords and businesses can access several financing routes for ESG solar panel installations in the UK. Depending on your circumstances, you may be able to fund solar through asset finance, hire purchase, leasing, a Power Purchase Agreement (PPA), green finance, grants or an outright capital purchase.

For organisations considering solar as part of their ESG strategy, financing can make it possible to reduce energy costs and carbon emissions without committing the full installation cost upfront.

At Low Energy Services, we design and install solar and battery storage systems across Scotland, England and Wales, with finance options available for eligible projects.

Glasgow Museum Resource Centre Solar Installation

What are ESG solar panel installations?

ESG solar panel installations are solar photovoltaic (PV) systems installed as part of a property’s wider environmental, social and governance objectives.

The environmental element is usually the most obvious. Generating renewable electricity on-site can reduce reliance on grid electricity and support an organisation’s carbon-reduction strategy.

Solar can also contribute useful operational and financial data to sustainability reporting. For example, UK government guidance identifies Scope 2 emissions as indirect emissions associated with purchased energy, while UK sustainability reporting frameworks increasingly focus on climate-related risks, opportunities and greenhouse gas emissions.

For property owners and businesses, this means a solar installation can potentially support several objectives at once:

Reduce electricity costs
Generate renewable electricity on-site
Reduce reliance on grid energy
Support carbon reduction targets
Contribute to ESG and sustainability strategies
Improve energy performance
Potentially increase the attractiveness of commercial property to occupiers and investors

However, solar should not be treated as an automatic ESG reporting solution. Your organisation should use the appropriate emissions-accounting methodology and keep reliable energy and generation data.

What financing options are available for ESG solar panel installations?

There isn’t one universal solar panel finance solution. The appropriate structure depends on your property, available capital, credit position, ownership arrangements, energy consumption and investment objectives.

Outright purchase

The simplest option is to purchase your solar PV system using your own capital.

You pay for the installation upfront and own the system. This means you retain the benefits of the electricity generated and avoid finance interest or lease charges.

For businesses with sufficient capital, an outright purchase can also interact with available tax allowances. However, tax treatment depends on the business and the specific installation, so obtain professional tax advice before making an investment decision.

This route may suit property owners who:

Have capital available for renewable energy investment
Want to own the solar asset immediately
Plan to hold the property for the long term
Want to retain the long-term energy savings

Asset finance or hire purchase

Commercial solar financing through asset finance or hire purchase allows you to spread the installation cost over an agreed period rather than paying the full amount upfront.

Depending on the agreement, you may make regular monthly payments and take ownership of the system after the finance term.

This can help landlords, developers and businesses preserve working capital while still investing in renewable energy.

The exact deposit, interest rate, term, ownership structure and eligibility will depend on the finance provider and your circumstances.

Solar leasing

A solar lease can provide another way to install commercial solar panels without purchasing the system outright.

The finance provider owns the equipment during the agreed term, while the property owner or business makes scheduled payments.

Leasing can be useful where preserving capital is important, although you should carefully review the contract, including maintenance responsibilities, ownership arrangements, end-of-term options and the total amount payable.

Power Purchase Agreement (PPA)

A solar Power Purchase Agreement (PPA) can provide a way to install solar with little or no upfront capital from the property owner, depending on the arrangement.

Under a PPA, a third party typically funds and owns the solar installation. The customer then purchases the electricity generated by the system at an agreed price for the duration of the agreement.

This can be particularly relevant for businesses, public-sector organisations and property owners with suitable roofs and consistent electricity demand.

Low Energy Services currently highlights fully funded PPA solutions alongside capital purchase and leasing options.

Before entering a PPA, consider the contract length, electricity price, ownership of the system, maintenance arrangements, export income, termination provisions and what happens when the agreement ends.

Grants and green finance

Depending on the property type, location and eligibility, grants or other forms of green finance may also be available.

UK government sources provide a central database of business finance and support schemes, including grants and loans. However, funding availability and eligibility can change, so businesses should check current schemes rather than assuming that a particular solar grant is available.

For residential properties, government guidance also identifies potential green finance and support schemes, although eligibility varies by household and location.

For commercial projects, it is therefore worth assessing grants and finance as separate parts of the overall funding strategy.

How can solar financing support your ESG strategy?

The financial structure you choose doesn’t change the physical benefits of solar, but it can determine how quickly you can implement your sustainability investment.

A financed solar project can help you move forward with renewable energy without necessarily committing the full installation cost immediately.

For organisations tracking emissions, solar generation data can also contribute to understanding changes in electricity consumption and emissions. The UK government publishes annual greenhouse gas conversion factors that can be used by UK organisations when calculating and reporting emissions from activity data such as purchased electricity.

For example, an organisation could track:

Baseline electricity consumption | solar generation | grid electricity purchased | associated emissions | year-on-year change

This creates a clearer evidence base for internal sustainability reporting and broader ESG discussions.

What should property owners consider before choosing solar finance?

Financing should be assessed alongside the technical and financial performance of the proposed system.

Before agreeing to ESG solar panel installations, consider:

Property ownership

If you are a landlord or developer, establish whether you own the roof and whether any lease agreements restrict alterations or renewable energy installations.

Energy consumption

Solar generally provides greater value where there is sufficient electricity demand to use a significant proportion of the generated power on-site. Your installer should assess your consumption profile rather than sizing the system based solely on available roof space.

Roof suitability

Roof orientation, shading, structural condition and available space can affect system design and projected generation.

Finance term

Compare the finance term with your expected property ownership or occupancy period. A long-term agreement may require additional consideration if you expect to sell or refinance the property.

Total cost

Don’t focus only on the monthly payment. Consider the total amount payable, fees, interest, ownership arrangements, maintenance and end-of-term obligations.

ESG reporting requirements

If you’re installing solar to support ESG reporting, establish what information you need to collect before installation. Generation monitoring and reliable energy data can make it easier to demonstrate progress over time.

Is solar financing available across Scotland, England and Wales?

Yes, financing structures can be available for eligible solar projects across Great Britain, although the options and eligibility criteria vary between projects and finance providers.

Low Energy Services provides solar and battery storage solutions across Scotland, England and Wales, covering commercial, industrial and other property sectors. Its current finance offering includes capital purchase, leasing, fully funded PPA solutions and support with grants and incentives.

The right approach depends on your property and financial circumstances rather than simply where the property is located.

How do I choose the right solar financing option?

Start by establishing three things:

How much capital can you commit upfront
Who needs to own the solar system?
How long will you own or occupy the property?

Then compare the available options based on total cost, monthly cash flow, ownership, tax treatment, maintenance responsibilities and long-term energy savings.

For landlords and developers, a PPA or leasing arrangement may be worth investigating where avoiding a large upfront investment is important.

For businesses with available capital, an outright purchase may be considered alongside the potential tax and energy benefits.

For organisations that want to preserve working capital, asset finance or hire purchase may provide another route.

There is no single financing structure that suits every property, so a site-specific assessment is essential.

Frequently Asked Questions

Can businesses finance solar panel installations?
Yes. Businesses may be able to use asset finance, hire purchase, leasing, PPAs or other funding arrangements, subject to eligibility and finance-provider approval.
Can I install commercial solar panels without paying upfront?
Potentially. A fully funded solar PPA can allow an eligible organisation to access solar without purchasing the system upfront. The exact structure and contractual terms vary.
Can solar panels help with ESG reporting?
Solar can support environmental objectives by generating renewable electricity and reducing reliance on grid electricity. Organisations should use appropriate emissions-accounting methods when reporting ESG or carbon data.

Are solar panel grants available in the UK?
Some grants and support schemes may be available depending on property type, location and eligibility. Funding changes regularly, so current government and local schemes should be checked before relying on a grant.

Can landlords finance solar panels?
Yes, landlords can explore options such as capital purchase, asset finance, leasing and PPAs. The lease terms, property ownership period and relationship with tenants should be considered before proceeding.

Get started with ESG solar panel installations

You don’t have to choose between improving your property’s sustainability credentials and managing your capital expenditure.

ESG solar panel installations can be funded through several routes, including capital purchase, asset finance, leasing and PPAs, with grants and other support potentially available for eligible projects.

Low Energy Services can assess your property, energy requirements and solar potential before helping you understand the available installation and finance routes.

Ready to explore your options? Request a bespoke solar assessment and find out what an ESG-focused solar installation could look like for your property.