Solar finance brokers for UK businesses
What a broker does on a commercial solar project, how they get paid, and how to check the funder they put in front of you.
Quick answer: A solar finance broker arranges funding for commercial solar across many lenders instead of selling one funder's product. A broker compares funders, matches the structure to the borrower’s balance sheet and tax position, and should show the total cost of credit in writing. The structure matters more than the rate, because it decides who owns the system and who claims the allowances. In the wider market, brokers are commonly paid by the funder through commission, and some also charge a fee, so ask any broker how it is paid.
Why use a broker rather than one lender
Most commercial solar finance is sold by installers offering a single funder's product, structured to suit the sale rather than your balance sheet. The route you choose decides whether you own the system and keep the capital allowances and the Smart Export Guarantee income — so the wrong structure can cost real money. The useful order of questions is structure first, rate second.
The routes, and who claims what
Commercial solar is funded through a small number of recognisable structures. Whoever you borrow from, check the name on the Financial Services Register first — and note that the route, not the rate, decides who claims the capital allowances:
- Hire purchase and equipment loans — own the system, keep the allowances.
- Finance lease and operating lease — spread the VAT, lowest monthly cost.
- Refinance and sale-and-leaseback — release capital from a system you already own.
See all the options in the finance options hub, or model the numbers on the finance calculator.
How a broker typically works
A broker will usually ask for recent electricity bills and basic company information, then build a like-for-like comparison of cash, hire purchase, lease and a PPA — net of the capital allowances — and take the project to funders that write this kind of business. Your accountant should confirm the tax treatment. Drawdown should be aligned with commissioning, so you are not paying for a system that is not yet generating.
What a broker costs
Whoever you use, ask how they are paid — commission from the funder, a fee, or both — and get the total cost of credit in writing so you can judge any deal on its merits. Paying cash or a PPA is sometimes genuinely better, and a good broker will say so.
Related guides
Solar finance broker FAQs
What does a solar finance broker do?
A solar finance broker arranges funding for a commercial solar system across multiple lenders rather than selling one funder’s product. A typical broker compares the routes (hire purchase, lease, equipment loan, refinance), matches the structure to the borrower’s balance sheet and tax position, takes the project to funders that write that kind of business, and should show the total cost of credit in writing. This site is an independent guide: it is not a lender and not an installer.
Is it better to use a broker or go direct to a lender?
Going direct gets you one lender’s single product, priced and structured to suit that lender. A broker compares funders, which can mean a keener rate and — more importantly for solar — the right structure for whether you want to own the system and keep the capital allowances. In the wider market, brokers are commonly paid by the funder through commission, and some also charge a fee, so ask any broker how it is paid.
Are solar finance brokers regulated?
Lending to a company for commercial solar is mostly unregulated business-to-business lending, so the funder does not need FCA authorisation to do it. Where the borrower is an individual, sole trader or small partnership and the agreement falls inside the Consumer Credit Act, it is regulated credit and the lender must be authorised — the business-purposes exemption only takes it outside the Act where the credit exceeds £25,000 and it must exceed it, so exactly £25,000 is not exempt. Ask for the funder’s registered name and firm reference number, check it on the Financial Services Register, and get the total cost of credit in writing before you commit.
How much can I borrow for commercial solar?
Facilities run from small commercial rooftops up to multi-million-pound schemes. The minimum is set by each funder rather than by the technology, so ask. Smaller unsecured facilities are sometimes supported by the British Business Bank Growth Guarantee Scheme — accreditation for that belongs to the lender, so ask the lender directly and check the British Business Bank’s published list. Larger projects are assessed on covenant strength and the project’s own cash flows.
How quickly can a broker get a decision?
Ask for the timetable in writing rather than assuming one — it depends on the funder, the facility size and how fast you can supply accounts information. What matters more to the programme is that drawdown is aligned with commissioning rather than with signing, so you are not servicing a facility on a system that is not yet generating.