Energy projects require capital long before they become operational. The funding structure should reflect that.
A solar, battery storage or wider energy infrastructure project does not move directly from signed contract to operational asset.
There may be design costs, supplier deposits, equipment manufacture, staged payments, site works, installation, grid connection, testing and commissioning before the project begins generating electricity, reducing consumption or producing revenue.
Yet funding is often considered only once the technical and commercial structure has largely been agreed.
At Capitas Finance, we believe it should be considered from the outset.
The investment case remains strong
Energy remains a significant commercial issue for UK businesses.
Research published by the CBI and Energy UK in 2026 reported that UK businesses pay around 45% more for electricity than the G7 median, highlighting the impact energy costs can have on competitiveness and investment.
At the same time, the Government’s Solar Roadmap identifies solar as an important component of the UK’s Clean Power ambitions and recognises the potential for rooftop solar to reduce energy bills and give businesses greater control over energy consumption.
The case for investment may be clear.
The challenge is turning that investment case into a deliverable, financeable project.
Finance the project as it is delivered
Energy projects typically progress through five stages:
Design and commercial assessment
Establish the technology, specification, site requirements, expected generation or savings and commercial case.
Procurement
Place equipment orders, often with deposits or advance payments.
Construction and installation
Manufacture, deliver and install equipment, with contractors and suppliers paid against agreed milestones.
Testing and commissioning
Complete and test the installation before the asset moves into full operation.
Operation
The asset begins delivering its intended commercial benefit, whether through lower energy costs, generation revenues or contracted energy services.
That creates an obvious question:
Why structure the finance as though the project only exists once it is operational?
Bridging project delivery and long-term finance
For suitable projects, interim finance can bridge the gap between expenditure during delivery and the long-term financing of the completed asset.
This is particularly relevant where suppliers require deposits and milestone payments, or where several months may separate the first project expenditure from commissioning.
An Interim Finance Facility can support eligible project expenditure during this period, before the completed project transitions into an appropriate longer-term financing structure.
Depending on the project, that could include:
- Hire Purchase
- Lease
- Loan
- Power Purchase Agreement
- Energy-as-a-Service
The right structure depends on the project and, critically, how it generates its economic return.
Match the finance to the economics
Financing an energy project is not simply about funding equipment.
The structure needs to reflect the underlying commercial model.
Key questions include:
- When does the project begin generating savings or revenue?
- Is its return primarily driven by reducing imported grid electricity?
- Is ownership important to the customer?
- Does the customer prefer capital expenditure or an operating-cost model?
- What is the expected economic life of the asset?
- Who carries performance, maintenance and residual-value risk?
These questions should form part of project development, alongside technology selection and technical design.
Finance shouldn’t be an afterthought
Leaving finance until the end of the development process can create unnecessary problems.
A technically strong project may have supplier payment milestones that are difficult to fund.
A customer may support the investment case but not want to commit its available capital.
An installer may reach the end of the sales process before discovering that the customer’s preferred commercial structure does not match the proposed solution.
Considering the financial structure earlier allows the technical, contractual and funding requirements to develop together.
That can create greater certainty for the customer, technology provider and funder.
From technology to investable project
The distinction is important.
A good energy project isn’t simply a technically viable installation. It needs to be commercially investable.
At Capitas Finance, that means looking beyond the equipment being installed.
We consider how the project moves through design, procurement, construction, commissioning and operation, and how capital needs to work at each stage.
Interim funding can support the delivery phase. Long-term finance can then be structured around the completed asset and its economics.
The financing follows the project, rather than forcing the project to fit the finance.
Think about finance earlier
The right time to consider funding isn’t when the equipment is installed and ready to switch on.
It’s when the project is being designed.
Bringing Capitas Finance into the process earlier can help customers and technology providers build the financing strategy alongside the project itself, from initial expenditure through to long-term operation.
More information
Capitas Finance structures funding for energy efficiency, onsite generation and energy infrastructure projects, working with customers and technology partners from project development through to long-term finance.
