Financial services provider ReEnergise Finance has announced the launch of its own ‘intelligent’ finance fund, ReEnergise SmartEnergy Finance.
According to the company, the fund is the first dedicated commercial finance vehicle aimed solely at providing funding solutions for SME businesses seeking to become more energy efficient.
The launch of the fund follows the signing of an agreement between ReEnergise Finance and private equity fund manager SI Capital in July. The fund will provide access to up to £5m capital for UK-based private and public sector SME organisations looking to undertake renewable energy and energy efficiency projects.
The company is predicting most interest to come from energy intensive manufacturers, agricultural landowners, schools, leisure centres, care homes and hotels.
ReEnergise Finance director Adam Hewson said: “When we launched our brokerage service last year, it was apparent there was a demand among SMEs for access to specialist funding for renewable energy and energy efficiency projects. We think now is the perfect time to launch our own ‘intelligent’ finance fund.
“The savviest businesses are not only regarding energy as a painful and costly challenge but as a way of creating competitive advantage in the market. Lower energy use means lower costs that can be passed on to customers.”
Typically, the fund is aimed financing projects valued between £25,000-250,000 including technologies such as biomass, solar PV, solar thermal, wind, anaerobic digestion and heat pumps. It will also support broader efficiency measures such as upgraded lighting, insulation, building management and monitoring systems, and voltage optimisation.
The fund will charge limited finance fees, but there will be set up and ongoing management costs recouped through rental, lease or interest payments charged over the financing term.
Michael Covington of SI Capital added: “As specialists in renewable energy and cleantech opportunities, SI Capital recognises the need fora specialist such as ReEnergise Finance to provide alternative finance solutions for the market. We are impressed by the company’s track record, its insight and knowledge of the tremendous scope for growth in the SME sector.”