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Hire Purchase - Apex Renewables

Apex Renewables

Company profile

Apex Renewables is a well-established renewable energy firm, providing products such as turbines, solar PV and biomass boilers for both personal and business use.

The company, which is based in Strathaven in Lanarkshire, has vast experience of renewable energy installation across the UK.

Challenge

Apex Renewables was approached by a care home that was interested in installing a biomass boiler. The Care Commission had condemned the home’s existing boilers so they made the decision to pursue a renewable system that would allow them to benefit from cheaper energy costs.

The home found itself in a very difficult position when they realised that the cost of buying this kind of system would be prohibitive and asked Apex Renewables for alternative options.

Solution

The Managing Director of Apex Renewables, Alan Simpson, decided to speak to Amanda Close, Sales Manager at Close Brothers Asset Finance. Amanda was able to use her sector expertise together with her understanding of the needs of both the care home and Apex Renewables to consider possible solutions.

Amanda and Alan agreed that an Energy Savings Company (ESCO) deal would be best suited, whereby the supplier company installs a biomass boiler at their own expense to provide heat for the end user, in this case the care home.

This type of deal means that Apex Renewables collects money via the Renewable Heat Incentive (RHI) over 20 years, while the care home benefits from reduced energy costs with none of the burden of ownership of the boiler.

Close Brothers Asset Finance was able to offer 100% finance for the boiler, with a repayment schedule over an agreed time period.

Result

Alan Simpson said: “I went straight to Close Brothers, bypassing high street banks as experience told me that the banks wouldn’t understand or view the deal in the same way. 

“Amanda’s expertise in renewables meant she immediately understood the situation, and crucially, that the boiler is a removable asset. That means that if anything was to happen with the third party, there is extra security. She also understood that the money we get back through the RHI is a strong method of debt recovery.

“Over the next 20 years, we will repair and maintain the boiler for the care home, the only cost to them is the fuel pellets which are half the price of the LP gas they were previously running on.

“My experience of working with Close Brothers Asset Finance has been extremely positive. They made a complex situation simple and I really believe we wouldn’t have made any progress with traditional bank lending. Amanda had the knowledge and authority to make a decision based on our individual situation and for us, that was priceless,” he added.