Construction Finance for Renewable Energy Projects
Renewable energy projects — solar farms, onshore wind, battery storage, and anaerobic digestion — require significant construction investment before generating any revenue. Construction finance funds the build phase, with repayment (or refinance to long-term project finance) once the installation is commissioned and generating income.
Green energy lenders assess the project on its projected revenue (power purchase agreements, grid export tariffs, renewable energy certificates) rather than traditional property metrics. Planning permission, grid connection agreements, and EPC contractor credentials are key to securing funding.
Key Benefits
- Fund construction through to grid connection and commissioning
- Green finance rates available from specialist lenders
- Revenue projections (PPAs, export tariffs) support the lending decision
- Government incentives improve project economics
Frequently Asked Questions
Do I need planning permission first?
Yes. Full planning consent and a grid connection offer are typically required before construction finance is released. Some lenders will issue conditional offers while planning is being determined.
What about battery storage without generation?
Standalone battery storage projects are fundable based on grid services revenue (frequency response, capacity market). The revenue model is different from generation, so specialist lenders are needed.
Can I combine construction and long-term finance?
Some lenders offer construction-to-term facilities that convert automatically from construction finance to long-term project finance upon commissioning. This avoids the cost of refinancing.
What government support is available?
Contracts for Difference (CfD), Smart Export Guarantee (SEG), and Capacity Market payments provide revenue certainty. UKIB (UK Infrastructure Bank) also provides direct lending and guarantees for qualifying green energy projects.
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Learn About Our Broker NetworkCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.