Solar Carport Asset Finance / Lease

Asset finance (sometimes called a 'finance lease') is the middle-ground commercial solar carport finance route — between full capital purchase and a 25-year PPA. You finance the carport over 5-7 years through an asset finance lender at typical UK 2026 rates of 7-9.5% APR. Monthly payments are usually lower than the monthly electricity bill reduction, meaning cashflow is positive from month one. You retain the AIA tax benefit and own the asset at the end of the term.

How asset finance works

Three parties: (1) the asset finance lender (a UK bank or specialist lender like Genesis Asset Finance, Henry Howard, Investec); (2) you, the lessee; (3) us, the supplier. You sign a fixed-term loan secured against the carport asset. The lender pays us in full at handover. You repay the lender in 60-84 monthly instalments. At end of term, you own the asset outright.

Asset finance pricing 2026

UK commercial solar carport asset finance rates in 2026: 7-9.5% APR on 5-7 year terms for established businesses with strong credit. Larger projects (£500k+) attract better rates. Smaller projects (£100-£300k) at the upper end. Public-sector borrowers often access cheaper Salix Recycling Fund 0% loans instead — see /finance/solar-carport-salix-fund/.

Why asset finance over capital purchase

Three reasons: (1) capital preservation — keep £400k of working capital free for inventory, expansion, hiring; (2) cashflow positive from month one — at 8% APR over 7 years, a £400k carport monthly payment is ~£6,200; the same site's monthly electricity bill reduction is typically £10-£14k; (3) AIA retained — unlike PPA, you still claim the Annual Investment Allowance, recovering 25% of capex in year-one corporation tax saving.

Asset finance economics — worked example

£400k carport, 7-year finance at 8% APR. Monthly payment: £6,233. Annual saving: ~£170k (typical 300 kWp site). Year 1 net cashflow position: +£95k positive (£170k saving minus £75k annual finance payment + £100k AIA tax saving). Years 2-7: positive cashflow each year. Years 8-25: free generation, no payments, ~£170k/yr clean saving.

Asset finance vs PPA — which to choose

Pick asset finance if: you're a tax-paying business; you have good credit; you want to own the asset at term end; you have alternative use for capex that yields >10% return. Pick PPA if: you can't fund capex; you can't access AIA (charity/public sector); you want zero asset management responsibility; you have a >25 year planning horizon. Pick capital purchase if: capex available; want max 25-year NPV; have surplus profits for year-one AIA claim.

How we deliver asset finance

We work with 6+ UK asset finance lenders specialising in renewable energy assets. Pre-approved framework agreements mean rates and term sheets are available within 5 working days of quote acceptance. We provide the lender pack — technical specs, generation forecasts, structural reports, planning approval — that lenders need for credit committee. Our framework typically saves 50-150bp vs walking in cold.