Sector

Renewable energy asset finance for the businesses building the energy transition.

Generation, storage, and the infrastructure that connects them. We finance commercial solar, battery storage, EV charging networks, and grid-connection equipment for the operators delivering the UK's net zero commitments.

Market reality

The sector, as it actually trades.

The UK's net zero commitments translate, in practical terms, into one of the largest sustained capital investment cycles the country has seen in a generation. Solar arrays, wind installations, battery storage systems, grid connections, EV charging hubs, and heat networks are all being deployed at pace by businesses that need financing structures matched to long asset lives, predictable revenue profiles, and serialised, recoverable hardware. Mainstream lenders are still learning the sector. We are not.

How we help

What our facilities actually do for you.

We finance across three connected areas. Generation hardware - solar, wind, and emerging technologies, where assets are serialised and asset registers can be maintained to the same standard as our agricultural and transport books. Storage - battery systems for behind-the-meter and grid-edge applications, structured around operating life and warranty. Infrastructure - grid connections, charging hubs, heat networks, and the physical assets that make generation and storage commercially useful. Our facilities are built around the cashflow profile of each asset class, not forced into a single template.

Why it works

The structure behind the deal.

The renewable sector shares the characteristics that define every market we fund: tangible assets, serialised inventory where applicable, structural demand driven by regulation and economics, and operators who benefit from a lender that understands the difference between a domestic rooftop install and a 20-megawatt commercial array. Capital is required across the chain - and so is the operational knowledge to underwrite it without padding the price for unfamiliarity.

What a deal looks like

What this looks like in practice.

A representative facility structure for this sector. The numbers and outcomes are illustrative, not a quote.

Renewable Energy

BESS senior project debt

A 10MW / 20MWh grid-connected lithium-ion battery energy storage system held in a single-purpose vehicle.

Structure

Facility
Senior project finance loan to the SPV
Limit
Indicative £6m to £9m, around 60 per cent of total capex
Term
10 years, quarterly amortising
Sizing
Minimum 1.30x debt service coverage on the floor revenue case

Revenue stack

Floor
Long-dated tolling or floor-and-share contract plus a 15-year T-4 Capacity Market agreement
Upside
Merchant arbitrage and frequency response (Dynamic Containment, Regulation, Moderation) sit above the floor

Pricing

Rate
Bespoke per facility, set against contracted floor revenue, sponsor strength, and structure
Fees
Arrangement fee at commitment; standard project covenant reporting only

Security

Security
SPV share charge, account control agreement, debenture, step-in rights

How it works

The bankable case is built on contracted revenue. Merchant arbitrage and ancillary services have repriced; lenders no longer underwrite to those line items, so they sit as upside above a contracted floor. Coverage ratios are tested quarterly, and any breach trips a lock-up before it ever becomes a default.

Outcome

The asset reaches commercial operation on plan and pays into the lock-up tests, leaving headroom for the sponsor to reinvest equity into the next project in the pipeline.

Representative example only, not a quote. Indicative sizes, pricing, and structures shown are illustrative and subject to credit assessment and final agreement. Last Mile Capital provides finance facilities to limited companies, partnerships, and other commercial borrowers; we are not authorised by the Financial Conduct Authority and do not provide consumer credit.

Get in touch

Let’s talk about your business.

Whether you are a manufacturer needing dealer finance, an operator needing fleet capital, or a funder looking for serialised, asset-backed origination. We would like to hear from you.