Renewable Energy Finance - Not Secured To Farm

[FarmConsult]

Hi All,

Since I now seem to be back out of retirement and using on-line forums, I might as well make the most and ask of the farming community:

Who has financed their renewable project, without the finance being secured to the farm or land?
Who set the finance deal up and what was the lending rate / term?
Are you happy with the package?

My 'ex' clients are now getting serious about their energy projects, it is always good to know if there is a finance option lurking out there which I might have missed.

Thanks,

Farm Consult.

 

[thesilentone]

Hi,

I think you may struggle to get the response you hope with such an open question. Financing is a personal matter which most prefer to keep confidential within their business.

Assett based finance for renewables is available from several companies, however these are easily searched / researched on the web.

Could you be specific in the type of Energy Projects that are planned.

 

[FarmConsult]

Hi Silentone,

I do already have connections to the preferable asset finance routes for renewable financing. I was simply digging around for anything I may have missed that has popped up in the market over the past year or so.

Farm Consult.

 

[mikelaluz]

Hi
There's no shortage of finance for Renewables projects. Most of it is Asset based and very tax efficient. Rates start at 3.9% flat rate - Aldermore, Peregrine,Lombard and Nationwide.

Usually no requirement to provide security.

Regards

Mike Smith

 

[FarmConsult]

Hi Mike,
From conversations I have had, Lombard / Peregrine and Aldermore offer asset finance with no security other than the machine itself. The odd farm here and there has spoken to Nationwide and they want security over other machines or equipment, already on the farm. I would not want to quote nationwide rates to people I speak with...too expensive based on all the quotes I have seen.

Added to the mix and albeit I never had any dealings with Siemens, I heard they were good to start with, but the time it took to get anything done with them has got longer and longer. I also think they were one of the more expensive asset lenders in the sector.

Lombard quotes that my clients have had vary from around 3.7% to 5.5% customer to customer so they can be very cheap.
Peregrine seem to be rigid at 3.9% flat.
I have not really seen much from Aldermore....

I know the one problem my customers have had with Lombard is the fact they won't transfer a penny to the supplier until the project is completed and commissioned. I am stuck in a rock and a hard place with customers....whilst I am suggesting it is clearly better for them to get the system installed and working before money changes hands, some or most sellers are not willing to install kit with no up front money. The projects just stall and get nowhere.

Peregrine get round this by providing the funds upfront to the customer, Lombard though are a very well known name in banking and finance. It is a case of all companies having positive points I suppose and also negative points.

I am still on the hunt for an illusive 8 to 10 year deal for some farms looking at solar panels without having to secure to the farm or deal with their bank - it seems I am going to be looking for a long time!

Best,

Brian Jones.
Ex-Farm Consultant.

 

[mikelaluz]

Hi Brian

I think you may struggle on the 8 to 10 Years I'm afraid. Peregrine of course has a standard 6 Years repayment term and with tax savings (I'm not offering Tax advice BTW) you should be able to make a Solar Project fund itself particularly if they are high users of the generation.

It does of course depend on the cost of the project but a standard roof fit 50kWp should now be coming in well below £50K

If however you do find the illusive lender willing to push out the repayments a little futher please give me the heads up

Kind Regards

Mike Smith

 

[FarmConsult]

Hi Mike,

Whilst speaking to a few contacts this morning, I got emailed what looks like a Peregrine marketing flyer and it states "Repayment terms up to 84 months " which is slightly better than the 6 years max I though. Although I did hear mutterings of Siemens being able to go longer than 7 years, although not very helpful to the chaps I speak to as they don't seem to like farms.

I'm with you on the tax side...I steer well clear!

The only way to get 10 year money I am guessing is with a farms bank, if indeed they are interested in funding the project and the farm does not mind the bank having a further chunk out of the farm.

I do tend though to shy away from getting involved with customers who are looking for a renewable project that will pay them handsomely over the years and they don't need to shell out a single penny of their own, or pay for it until their government subsidies kick in - I am not sure there is such a thing!

Brian.

 

[David@SBA]

It might not be exactly what you are looking for, but I am aware of investors that put money into renewable energy projects in return for a stake in the project. It might therefore be more of a land lease and/or free electricity deal, but if this comes without personal financial investment then great! I put up a post about Hydro schemes, but the company I work for also assists with domestic to large scale wind power developments including seeking investment. If anyone is interested in installing single or multiple wind turbines of any size, send me a message and I'll ask one of my colleagues to have a look.

 

[FarmConsult]

Thanks David,

The farms I talk to are all looking to own the project outright therefore not suited to investor money. Thanks for the note though.
Brian.