Customised financial solutions for large-scale energy projects
Siemens has long held a reputation of being at the forefront of sustainable energy development. We use years of accumulated knowledge to work with energy technology providers, helping organisations find the right energy solutions and accompanying finance packages. As an expert in energy efficiency and renewable energy funding, we can help customers acquire the infrastructure and equipment needed to achieve their energy goals in an affordable way.
Siemens Financial Services offers investment solutions ranging from advisory services to debt and equity capital to help our clients in the energy and natural resource markets address tomorrow’s energy needs today. With a global network of energy finance professionals, we provide capital and expertise that is backed by more than 160 years of Siemens’ industry innovation, financial strength and diligent risk management.
Siemens Financial Services, September 03, 2018
Energy Finance Blog: how finance and tech is enabling change
Our Head of Energy Finance at Siemens Financial Services, Ian Tyrer, shares his vies on the recent market changes and developments within the energy space and how finance is an enabler to this transition in our latest blog.
Financial solutions to enable optimised energy efficiency
We offer a range of energy finance solutions to help support businesses within the rapidly evolving energy market to improve sustainability.
Typical projects we finance
Our finance packages are suitable for a wide range of energy projects that have a minimum value of £250,000.
Some of the typical energy solution projects that Siemens Financial Services can provide financing for are:
- Wind turbines
- Battery storage
- Building efficiency
- Distributed energy
- Building retrofits
Why choose SFS
- Long history and market leading position in the leasing market
- Makes latest technology available without use of capital funds or cash reserves
- Provides ability to upgrade to new equipment on regular basis
- Cost effective alternative to traditional bank funding
Investing in Total Solutions
Energy Finance enables businesses to invest in new equipment to improve operational efficiency with zero capital outlay. This means they benefit from reduced energy and operations & maintenance costs over time.
Debt Solutions for the Energy sector
We support private equity and corporate clients' needs and strategic goals through senior secured loans that are tailored through all business cycles. We have the strength to structure, underwrite and hold significant positions. We offer both floating and fixed rate options and are capable of a broad range of transaction sizes.
Equity Investments to support energy projects
We typically reserve equity capital to focus on projects that directly utilise Siemens equipment and services and generally take a minority interest in a project, investing at financial close of project construction. We combine an extensive track-record in equity investment to originate, structure and execute successful investments in the energy markets with an emphasis on generating superior returns together with our co-investors.
What our customers say...
We are delighted that Siemens, as well as becoming a project partner will also, through their technical division, support key aspects of the project including turbines, turbine installation and maintenance support
Overview of our process
We advise on the most appropriate form of funding and provide finance options. We then confirm pricing once the equipment has been specified by you and capital price has been confirmed.
In order to ensure customers have the cash flow required to afford the regular payments, we will typically require latest full financials from the business, alongside any relevant supporting information, such as the nature of business activity. Our finance agreements are suited to businesses that have been trading for at least 3 years and have transaction sizes starting from £250k.
Once a credit facility has been approved, you are then required to sign and return the documentation to us. For leases, a purchase order is then placed for the equipment and it is delivered or installed by the supplier. For loans, the funds are transferred directly to your bank account.
Once the equipment is installed and on receipt of the certificate of acceptance from you confirming that the equipment is in working order, we activate the lease and pay the supplier.
Benefits of finance
- Access to energy efficient technology without use of capital resources
- Simplified budgeting and financial transparency with fixed payments
- Regular technology updates could provide efficiency savings
- Expected savings in energy costs are used to offset monthly payments, potentially reducing net investment costs to zero
- Often no deposit required, which may help cash flow
Energy finance case studies
Working in partnership to deliver energy solutions
Galloper Wind Farm
56 wind turbines of the six-megawatt class for the Galloper project
Siemens Financial Services holds 25 percent of the total equity in Galloper Wind Farm Ltd
Output of 336 megawatts to supply up to 336,000 British households