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How Green can you afford to go?

  • Date: 30 October, 2017

Funding new Energy saving assets to create a brighter future for your business

Often the decision for many businesses to invest into Green facilities or Energy Saving technology comes down to cashflow. What many people do not realise is that many Green assets can be acquired with minimal cost to their business once grants and energy cost savings are taken into consideration.   

Asset Finance is therefore a credible way of buying such assets and Reality Finance have teamed up with a bank that understands these assets and what they can achieve for your business at attractive finance rates.

Popular types of “green” asset and estimated commercial benefits:  *  

LED Lighting:

  • LED Lights cost roughly twice that of an equivalent incandescent light.
  • However, they use 80% less energy.
  • The energy savings have a typical payback period of 2 – 3 years.  (This excludes the maintenance savings and replacement costs).

 Solar Panels:

  • Low maintenance costs
  • The FiT payments and power savings offer a payback period between 10-12 years. This is expected to fall due to decreasing panel prices.
  • In some situations, the site owner can sell power back to the grid.

 Biomass Boilers:

  •  Biomass boilers cost 2x more than a conventional gas boiler, however the savings and subsidy generate payback periods of around 7 years.

We can also fund Generators, CHP engines, heating ventilation & air conditioning systems.

But why Asset Finance?

Asset Finance is well suited for investments of this kind.   Reality Finance will arrange a monthly payment plan with periods of repayment up to seven years. *   

The following example shows how an existing Reality Finance client seized the opportunity to invest in energy saving technology:

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Cost of Equipment: £25,210

Grant: £7,563

Balance to Finance:  £17,563

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Finance Repayments:  35x monthly rentals of £593.97

Total Repayments:  £20,788.95

Est. Annual Energy Savings: 5,472

Total savings over 3 years:  £16,418.49

Total Rentals Payable:  £20,788.95

Total energy savings over three years: £16,418.49

Cost to the business over three years:  £4,370.46

Annual cost to the business:   £1,456.82

Est. annual Saving on energy costs: £5,472

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* commercial benefits are estimated and relative to each business.
** subject to underwriting. 
*** energy savings calculated by the manufacturer, Dust Control Systems Ltd.