Wind Turbine Finance for UK Businesses — Loans, Hire Purchase & Leasing
Gable Asset Finance specialises in arranging bespoke finance solutions for organisations across the UK seeking to acquire wind turbines — from large-scale commercial turbines for wind farms and industrial sites to small and medium turbines for farms, schools and off-grid facilities. Whether you are a developer planning a new wind farm, a data centre looking to reduce energy bills, a distribution warehouse seeking long-term energy security, or a rural business wanting to install smaller turbines, we can structure loans, hire purchase agreements, leases and other funding options to suit your technical, financial and tax objectives.
Who buys wind turbines — typical UK customers
Demand for wind generation equipment spans a wide range of organisations. The most common buyers we support are:
Wind farm developers and operators — businesses that build and operate multiple turbines to sell electricity to the grid or under power purchase agreements (PPAs).
Landowner-developers and farms — landowners who develop mid- or large-scale projects on their land, or install single/dual turbines to reduce their own energy costs.
Large electricity consumers — warehouse distribution centres, data centres, manufacturing and industrial sites with high and consistent power demand that can offset a meaningful share of consumption with on-site generation.
Energy companies and investment firms — utilities, private equity and infrastructure investors acquiring turbines as an income-generating asset class.
Public sector and institutions — schools, colleges, universities and hospitals that use turbines for partial energy self-sufficiency or educational/environmental objectives.
Smaller businesses and domestic users — small enterprises, micro-farms and domestic owners who purchase small-scale turbines (including vertical axis turbines) for specific site needs.
Types of wind turbines and typical uses
Understanding turbine types helps determine the right finance solution. The most common categories are:
Large-scale onshore turbines
These are commercial machines (typically 2MW and above) used in wind farms and utility-scale installations. They are capital-intensive and often financed via project finance, corporate loans, or specialised asset finance with long tenors.
Medium turbines (100kW–2MW)
Suited for industrial sites, large farms and community projects. These turbines can materially reduce on-site consumption and are often financed using a mix of equipment finance and green loans.
Small turbines (up to 100kW)
Ideal for farms, schools, remote sites and businesses with lower energy needs. Smaller turbines have lower capital costs and shorter payback periods and can be financed with hire purchase, leasing, or short-term loans.
Micro and domestic turbines
Typically under 15kW for domestic or very small commercial use. Finance options include personal loans, green energy loans or small equipment HP agreements.
Offshore turbines
Large, specialised turbines installed offshore are normally financed through project finance with complex structures including equity, debt and long-term contracts. These are outside the scope of typical small/medium business finance but important to note for large developers and energy companies.
Finance options we arrange
Gable Asset Finance provides access to the full range of funding options commonly used to acquire wind turbines. We will match the asset, borrower profile and commercial objective with the most appropriate structure:
1. Asset Finance / Equipment Loans
Asset finance allows you to spread the cost of the turbine over its useful economic life. For many turbines this means terms of 5–20 years depending on size and expected lifespan. Lenders will usually take the turbine (and sometimes the associated electrical infrastructure) as security. Benefits include off-balance-sheet options (when structured as operating leases), predictable monthly repayments and the ability to preserve working capital.
2. Hire Purchase (HP)
Hire Purchase is suitable where the purchaser intends to own the turbine at the end of the agreement. HP spreads the purchase price into fixed instalments with ownership passing to the borrower when the final repayment is made. It’s straightforward and often used for medium and small turbines.
3. Finance Lease
Under a finance lease, the funder retains ownership of the turbine while the business benefits from its use. Lease repayments cover the cost and a margin; at lease end there are options (e.g. purchase at a nominal fee). Finance leases can help preserve capital and sometimes provide accounting benefits compared to outright purchase.
4. Operating Lease / Contract Hire
Operating leases are essentially rental agreements. They are useful for businesses that prefer low monthly costs and for turbines expected to be upgraded or decommissioned after a fixed term. Operating leases typically include service agreements and residual value management handled by the funder.
5. Project Finance & Non-Recourse Loans
For large wind farms, lenders will often use project finance: long-term, asset-backed loans where debt repayment depends on the project’s cash flows (power sales via PPAs or market routes). These structures commonly incorporate equity investors, senior debt and subordinated debt tranches.
6. Green Loans & Sustainability-linked Finance
Many lenders now offer green loans or sustainability-linked facilities with preferential terms for renewable energy projects. These products may require environmental reporting and compliance but can lower the cost of capital for qualifying projects.
7. Bridging Finance & Short-term Facilities
When timing matters (e.g., buying equipment ahead of a longer-term facility), bridging finance can provide immediate liquidity. Bridging is more expensive and usually repaid or refinanced when the longer-term finance is in place.
8. Sale & Leaseback
Some corporate owners sell turbines (or the rights to generation assets) to investors and lease them back to release capital while retaining operational use. This can be useful for businesses looking to deleverage balance sheets while keeping energy supply on-site.
How finance choice depends on buyer profile
The right funding mix depends on the buyer’s objectives, balance sheet, tax position, and the turbine’s size and purpose. Typical matches include:
Large developers: Project finance or corporate loans combined with equity, sometimes backed by long-term PPAs.
Large energy-consuming businesses: Asset finance or HP for ownership, or operating leases where they prefer to avoid capital expenditure and depreciation risk.
Landowner-developers: Standalone equipment loans or a blend of HP and project-level senior debt depending on the number of turbines and scale.
Farms, schools and SMEs: HP, asset finance or green loans with terms matched to expected energy savings and income streams.
Investment & infrastructure funds: Structured debt facilities, sale & leaseback, or funded arrangements reflecting investor return targets.
Commercial and technical due diligence lenders require
Lenders will perform rigorous due diligence before committing funds. Common areas of focus include:
Technical assessment: Turbine model, manufacturer track record, expected lifetime, maintenance schedules, warranties and availability of spare parts.
Site suitability: Wind resource assessment (wind speed, direction), grid connection feasibility, planning consent and environmental studies.
Operational plan: Installation timetable, EPC (engineering, procurement and construction) contractor credentials, O&M (operations and maintenance) arrangements.
Revenue model: Expected generation, offtake arrangements (PPA or merchant), electricity price assumptions and any subsidy or incentives.
Financial modelling: Cashflow projections, debt service coverage ratios (DSCR), sensitivity analysis (wind yield, price volatility) and contingency planning.
Security package: Collateral, covenants, assignment of power purchase agreements and intercreditor arrangements where applicable.
Tip: Early engagement with a specialist broker reduces surprises. We help you prepare realistic technical and financial pack required by lenders so the underwriting process is efficient.
Tax, grants and regulatory considerations (high-level)
Renewable energy projects interact with tax and regulatory frameworks. These change over time, so always take professional tax and legal advice. Below are common considerations lenders and borrowers review:
Capital allowances & tax treatment: Purchase of qualifying plant and machinery may provide capital allowances which reduce taxable profits. Treatment varies by turbine type and ownership structure.
VAT treatment: VAT rules depend on the equipment, installation and an intended use of generation (business vs domestic) — VAT recovery may be possible for VAT-registered businesses.
Incentives and revenue support: Historic regimes and current support mechanisms (e.g., Contracts for Difference in the past for larger projects, or other small-scale incentives) should be checked; policy can materially affect revenue forecasts.
Grid connection charges and EHV/HH costs: Grid reinforcement, connection timelines and balancing charges are important cost items for lenders to see.
Planning, environmental consents & local constraints: Planning consent and any environmental mitigation requirements are central to valuation and lender appetite.
How we structure a typical wind turbine finance deal
While each transaction is unique, a common process and structure for medium to large turbine finance includes:
Initial feasibility & lender scoping: Gable Asset Finance assesses site, turbine type and borrower profile and recommends likely lender groups and financing routes.
Term-sheet & indicative offers: We secure indicative terms from multiple lenders outlining pricing, tenor, covenants and security.
Technical due diligence: Lender-appointed and borrower-appointed technical experts review turbine specifications, installation contractors and warranties.
Financial model & legal: A project model is prepared and legal security is negotiated (charges over asset, assignment of contracts, intercreditor agreements).
Completion & funding: Contracts are signed, funds released to the supplier or contractor, and the installation commences with milestone payments.
Operational phase: Once commissioned, generation revenues are monitored and lender reporting begins as agreed in covenants.
Common lender structures and covenants
Lenders will generally seek protections appropriate to the asset and borrower. Typical structures and covenants include:
Security: Fixed charges over turbine equipment, assignment of EPC and O&M contracts, charge over land or the company as appropriate.
Debt service coverage: Minimum DSCR thresholds that must be met on historical and forecast cashflows.
Step-in rights: Lenders sometimes require the ability to step in under defined circumstances to ensure asset performance.
Reporting: Periodic operational and financial reporting; production data and maintenance records.
Reserve accounts: DSRA (Debt Service Reserve Account) or maintenance reserve funds to manage intermittency and unexpected repairs.
Advantages of financing wind turbines
There are multiple commercial and strategic benefits to financing rather than paying cash:
Preserve working capital: Avoid tying up equity and preserve liquidity for other strategic needs.
Tax and accounting flexibility: Different structures (HP, lease, loan) can have benefits for balance sheet presentation and tax.
Align costs with benefits: Repayments can be timed to expected savings or revenue from generation.
Access to specialist lenders: Project finance and green lenders provide large-scale capital with sector expertise.
Scalable growth: Financing enables organisations to deploy multiple turbines or phased installations without large capital outlays.
Risks and how lenders mitigate them
Wind projects carry risks. Lenders mitigate these through covenants, technical assessments and contractual protections:
Technology risk: Turbine failure or underperformance. Mitigation: choose proven manufacturers, warranty terms and availability guarantees.
Construction risk: Delays, cost overruns. Mitigation: fixed-price EPC contracts, performance bonds and phased payments.
Market / price risk: Electricity price volatility. Mitigation: PPAs, hedging strategies or diversification of revenue streams.
Regulatory risk: Changes in government policy. Mitigation: stress testing and conservative modelling without reliance on uncertain incentives.
Case studies — practical examples
Case study A — Distribution centre reduces energy costs
Background: A national distribution warehouse with high, near-constant power demand sought to reduce grid costs and carbon emissions. The site had sufficient land to host three 1.5MW turbines.
Solution: Gable Asset Finance arranged a 15-year asset finance package combining a green loan and an operating lease for the turbines. The finance included an O&M reserve and a PPA to sell excess generation back to the grid.
Outcome: On-site generation covered a significant portion of daytime consumption, substantially reducing grid bills and improving the site’s carbon profile. The facility also benefited from predictable, long-term energy cost savings.
Case study B — Farm installs small turbines for energy independence
Background: A mixed farm with dairy and arable operations installed two 50kW turbines to reduce electricity costs and support local electrification of farm equipment.
Solution: We structured a hire purchase facility with seasonal repayment options aligned to cashflow after harvest and milk payments. The lender accepted the turbines as security and provided a maintenance add-on in the contract.
Outcome: Energy expenditures fell, operations became more resilient to price spikes, and the farm reinvested savings into equipment upgrades.
Case study C — Developer finances a community wind project
Background: A community energy cooperative planned a 3-turbine project and sought a mix of debt and local equity finance.
Solution: Gable Asset Finance introduced the cooperative to specialist lenders and helped structure a non-recourse project finance facility, coupled with community equity and a long-term PPA with a local school consortium.
Outcome: The project secured funding, generated local income for reinvestment, and provided renewable power to nearby public buildings.
Step-by-step: How to apply for wind turbine finance with Gable Asset Finance
Initial contact & briefing: Provide site details, intended turbine size(s), basic business accounts and high-level objectives.
Pre-feasibility review: We run high-level site screening and lender scoping to identify viable finance routes.
Indicative term-sheets: We seek indicative offers from lenders to benchmark pricing and structure.
Detailed due diligence: Lenders require wind resource assessments, technical specifications and financial modelling.
Loan documentation & legal: Finalise security, covenants and drawdown schedules with the lender and legal teams.
Completion & commissioning: Funds released, turbine installed, commissioning tests performed and O&M starts.
Operational reporting: Generation reporting and lender covenants monitored according to the agreement.
What lenders will typically ask you to provide
Being prepared speeds approval. Lenders commonly request:
Historic financial statements and forecasts (company and project-level).
Business plan and explanation of how the turbine fits operations.
Land ownership or lease agreements and planning consents.
Wind resource assessment (anemometry and wind maps).
EPC and O&M contracts, manufacturer warranties and insurance proposals.
Details of existing debt and any encumbrances.
Evidence of offtake arrangements or PPA terms, if applicable.
Typical lender types & who to approach
Different lenders suit different projects. We will usually approach a mixture depending on size and risk profile:
High-street banks: For lower-risk, smaller turbines to established businesses with strong covenants.
Specialist renewable lenders: Capital providers with experience in wind and green infrastructure (often offering green loan terms).
Energy resilience: Reduces exposure to price volatility and supply disruption.
Community & stakeholder value: Community projects can deliver local jobs and shared revenue.
Investor appeal: Renewable-backed projects often attract ESG-focused capital at competitive pricing.
Common questions (FAQs)
Can a small business get finance for a single turbine?
Yes. Many lenders will finance smaller turbines for SMEs, farms and schools via HP, asset loans or leasing. The borrower’s financial strength, quality of the turbine and site suitability are key.
How long does approval take?
Timescales vary: small turbine finance can be arranged in weeks once documentation is ready. Larger projects require months for technical and financial due diligence and legal documentation.
Do lenders require planning consent before lending?
Most lenders want to see planning permission and grid connection evidence as part of due diligence; some may offer conditional offers subject to consent.
Is government support still available?
Support regimes change over time. Some projects benefit from PPAs, green certificates or local incentives — consult advisers for current schemes. Lenders prefer conservative models that do not depend on uncertain subsidy mechanisms.
What about decommissioning?
Decommissioning obligations should be included in cost forecasts. Lenders often require evidence of decommissioning plans and reserves or bonds to cover future costs.
Why use Gable Asset Finance?
Gable Asset Finance combines sector experience, lender access and practical deal management to deliver tailored wind turbine financing solutions:
We match projects to the right lenders and negotiate competitive terms.
We coordinate technical and financial due diligence so lenders get the information they need efficiently.
We structure repayments to align with energy savings, generation revenue and seasonal cashflow.
We advise on tax, VAT and accounting implications in partnership with your adviser.
Ready to discuss turbine finance? Contact Gable Asset Finance with your project details, estimated turbine size, site information and basic financials so we can provide an initial feasibility and lender scoping.
Next steps — what we’ll need from you
Site details and ownership/lease documents.
Preliminary wind resource data or location coordinates for assessment.
High-level project costs and supplier/EPC quotes.
Historic financials (if applicable) and basic business plan or objectives.
Details of any planned PPAs, grid connection arrangements or incentive expectations.