Funding Energy Improvements With Our Pay As You Save Finance
Removing the financial burden of taking action on climate change
At BHESCo we know that most property owners in the UK love the idea of generating their own renewable energy and making their homes and businesses more energy efficient. But we also know that most people often do not have the time, the technical knowledge, or the finances to turn this dream into a reality.
That’s why BHESCo was established to help communities overcome these obstacles and to take control of their energy bills and carbon emissions.
One of the most important ways that BHESCo supports homeowners, businesses and facilities managers is by providing the upfront financing for the installation of new energy efficiency or energy generating technologies.
How does BHESCo's Pay As You Save financing work?
Using our innovative ‘Pay As You Save’ initiative, the upfront cost for the majority of our community energy projects is financed through a community share offer, where members of the public can invest in and become shareholder members of BHESCo in return for an annual interest payment and a say in how our co-operative is run.
Under a typical lease agreement with our Pay As You Save financing, a portion of the savings that customers make from their monthly energy bill is used to repay the upfront cost of the installation.
This means that customers start to see savings immediately, with a portion of those savings being used to repay the cost of the installation. Once repaid, our customers get the full benefit of their savings.
After an agreed number of years the upfront cost is fully repaid and customers become the sole owners of their energy saving or generating equipment, meaning they can enjoy the full financial benefit of their monthly bill savings.
In this way, our business model empowers individuals and whole communities to reduce their environmental impact and take vital action on climate change.
What different types of project financing do BHESCo offer to customers?
BHESCo works with a range of customers with differing needs and concerns. Experience has enabled us to develop a variety of finance options to empower all types of property owner to take control of their energy bills.
There are other cases where a customer may want to pay something upfront to lower the borrowed amount, or where BHESCo cannot achieve savings from the measures that are installed, such as with underfloor heating or asbestos removal.
Here are some of the most common types of financing options that BHESCo offers to customers:
Power Purchase Agreement
The customer pays for the energy generated or saved from the measures that BHESCo install. A typical example would be a solar PV installation, where BHESCo will sell the electricity generated from the solar panels to the property owner at a significantly reduced cost than purchasing energy directly from an energy supplier.
Operating Lease Agreement
The customer pays BHESCo for the right to use the equipment that we have installed on their premises and does not take ownership of the equipment.
Hire Purchase Agreement
The customer owns the equipment for finance and tax purposes and pays a monthly amount to pay back BHESCo’s upfront investment
The is similar to a collateralised loan that someone would get from a bank.
What are the next steps in partnering with BHESCo to finance your energy improvements?
If you are interested in partnering with BHESCo for help with financing your energy improvements we would love to hear from you.
However, before we can begin to consider entering into a long term lease agreement or power purchase agreement, is it essential to gain an understanding of the existing energy and thermal performance of your property, and to identify which measures will deliver the most cost-effective impact.
For this reason, a bespoke BHESCo energy survey should be the first phase of any planned building improvements, underpinning every other stage of your future energy strategy.
Our friendly and knowledgable staff are here to answer your questions and help you begin your journey to energy independence.