Fund your energy project with BHESCo's
'Pay As You Save' finance initiative
Kickstart your energy project with upfront financing from BHESCo
While many UK businesses and commercial property owners welcome the idea of improving their energy efficiency – taking control over their energy bills and carbon emissions as well as generating renewable energy – making this a reality can be challenging.
For many organisations, finding the time, resources, expertise and especially financing for a new energy project, alongside day-to-day business needs, can be challenging.
Here’s where BHESCo can help.
We can support our clients by providing expertise, signposting to grants or funding opportunities, providing complete project management and importantly enabling upfront financing for energy upgrades using our innovative ‘Pay As You Save’ financing.
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How does BHESCo's 'Pay As You Save' financing work?
BHESCo’s unique financing initiative enables commercial property owners to pay for the cost of energy upgrades over an agreed period of time, with the savings they achieve on their monthly energy bill.
BHESCo designs the new energy project, pays for the cost of the installation, and then recoups that cost over a number of years from the client, who makes instant savings on their energy bill.
What’s involved
1. Research & development
BHESCo designs a new low-carbon energy plan for your property, including a 20 year economic model which details the anticipated reduction in energy use and costs. You choose the technologies you want, and BHESCo tender the work to our network of trusted local suppliers.
2. Project financing
Once the total cost required for equipment and labour is known, BHESCo is able to fundraise projects from our network of community investors.
3. Project Install
When the upfront project costs and investment financing are agreed, the installation of energy upgrades and equipment begins. This means that clients can start to make savings immediately without having to make any upfront investment at all.
4. Lease period
A proportion of the savings that are made from the monthly energy bill is used to repay the upfront project cost to BHESCo. For example, if savings are now £500/ month, then £300 could be paid to BHESCo, and £200 retained by the client. .
5. Ownership transfer
After an agreed number of years, the upfront cost is fully repaid by our client to BHESCo and the client becomes the sole owner of their energy saving or energy generating equipment, to enjoy the full financial benefit for the remaining operational lifetime of the equipment.
By providing upfront project financing in this way, BHESCo empowers individuals, businesses, and whole communities to overcome financial obstacles and reduce their long-term energy costs and environmental impact.
By providing upfront project financing in this way, BHESCo empower individuals, businesses and whole communities to reduce their long-term energy costs and environmental impact.
What different types of project financing do BHESCo offer to customers?
At BHESCo we work with a range of clients and understand that organisations have a range of differing situations, needs and concerns.
Experience has enabled us to develop a variety of finance options to empower all types of property owners to take control of their energy bills.
For example, a client may want to pay something upfront to shorten the lease period or to reduce the monthly payments, or where BHESCo cannot achieve savings from the measures that are installed, such as installing heating where none had previously existed.
Here are some of the most common types of financing options that BHESCo can offer to our clients:
Power Purchase Agreement
The customer purchases electricity from the renewable energy system installed.
A typical example would be a solar PV installation, where BHESCo sell the electricity generated from the solar panels to the property owner at a significantly reduced price than they would get from an energy supplier.
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.
Once the monthly payments come to an end, the ownership of the installation is transferred to the customer.
Operating Lease Agreement
The customer pays BHESCo for the right to use the equipment that we have installed on their premises but does not take ownership of the equipment.
Loan Agreement
This is similar to a collateralised loan that someone would get from a bank, only that BHESCo’s rate is more customer friendly.
Loan agreements are normally taken for smaller amounts rather than bigger projects.
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‘Pay As You Save’ Case Study
Situation
In 2019, BHESCo installed a 50kW rooftop solar array at Saltdean Primary School in Brighton, using a ‘Pay As You Save’ financial model where all upfront project costs were met through a community share offer.
Outcome
The solar array has performed exceptionally well, resulting in a significant reduction in the volume of electricity that the school needs to purchase from their energy supplier.
As illustrated in the graph below, the school has achieved significant savings on the cost of their annual energy bill.
What are the next steps in partnering with BHESCo to finance your energy improvements?
If you are interested in partnering with BHESCo to design, install and potentially finance a new energy project for your property then please complete the short contact form below and a member of our team will get back to you soon.