Battery Storage System Finance

Spread the cost of commercial battery storage from £15,000 to £500,000+ with flexible finance options. HP, lease, or refinance

Can you finance a battery storage system?

Yes, battery storage systems are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £15,000 to £500,000, and most deals are written over 36–84 months with a deposit of around 15–25%. Decisions typically take 24–72 hours. Used machines are financeable too, usually with a shorter term.

Typical Cost

£15k – £500k

Approval Speed

24–72 hours

3–5 days for > £100k

Rates From

6.8% APR

What would a battery storage system cost per month?

Battery Storage System price (ex VAT) £120,000

Deposit 10%

Agreement term 60 months

Annual interest rate 9%

Balloon payment £0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical battery storage system price. Indicative only, not a quote.

Finance options

Hire Purchase (HP)

Rate: From 7.0% APR
Term: 36–84 months
Deposit: 15–25%
Ownership: Yours at the end
Best for: Businesses wanting to own the battery system outright

Finance Lease

Rate: From 6.8% APR
Term: 36–84 months
Deposit: None required
Ownership: Return or buy (balloon payment)
Best for: Businesses that would rather keep capital for core operations

Operating Lease

Rate: From 8.0% APR
Term: 48–72 months
Deposit: None required
Ownership: Return at end
Best for: Businesses wanting to upgrade capacity as battery technology improves

Representative example

On a purchase price of £120,000: a 10% deposit of £12,000, then 48 monthly payments of £2,531 at 5.9% APR representative (fixed). Total amount payable £133,488, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification	Guide price	Type
Tesvolt TS HV commercial battery system	Price on application (indicative only, confirm with a Tesvolt UK dealer)	Modular Commercial Battery (30kWh–2MWh scalable)
Pixii commercial energy storage system	Price on application (indicative only, confirm with a Pixii UK dealer)	Modular Commercial Battery
Small commercial battery paired with an existing solar array (specification class)	£15,000 – £40,000	Small Commercial Battery
Containerised industrial-scale battery storage (specification class)	£200,000 – £500,000	Containerised Industrial Storage

Tax benefits

Commercial battery storage is generally moveable plant and normally qualifies for the Annual Investment Allowance, letting you set the full cost against taxable profits in the year of purchase up to the prevailing AIA limit, which your accountant can confirm. Where a battery system is hardwired into a building's electrical infrastructure as part of a wider installation, it can be treated more like a fixture for capital allowances purposes than a free-standing item, so get your accountant to confirm the correct treatment for your specific installation before finalising the finance.

Market context

Battery storage is bought by businesses with an existing or planned solar array wanting to store generated power rather than export it, by sites facing high demand charges or grid constraints wanting to manage their own consumption pattern, and by larger commercial and industrial energy users balancing load across a site. Because the technology and its resale value are still relatively new and the secondhand market for used commercial batteries is thin, lenders generally underwrite these deals on the strength of the borrowing business itself, its trading history and ability to repay, rather than on the resale value of the battery system the way they would for an established asset class like a vehicle or a machine tool. Replacement or expansion is typically driven by growing energy demand or new tariff structures making a bigger system worthwhile, rather than the battery cells wearing out within their expected life.

Bad credit?

Some specialist lenders consider businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options may be available. Fundably may use a soft credit check for matching, which does not affect your credit score. A hard check may happen if you choose to proceed with a lender.

Frequently asked questions

Why is battery storage financed differently from other equipment?

Because the used market for commercial battery systems is still thin, a lender can't rely on being able to repossess and resell the battery for a predictable amount if a deal goes wrong, unlike with a vehicle or a well-established machine tool. Lenders therefore lean more heavily on the borrowing business's own trading history, accounts and ability to repay from its existing income, rather than on the asset's resale value, which can mean a stronger deposit or a personal guarantee is asked for even from an otherwise creditworthy business.

Can battery storage be financed together with a solar installation?

Yes, many lenders will finance a solar array and battery storage system together on one agreement, since they're commonly installed as a single project. Combining them can also make the overall deal size more attractive to a lender than financing the battery alone as a smaller, standalone item.

Is a battery system treated as a fixture for tax purposes?

It depends on the installation. A battery hardwired into a building's electrical system as part of a fixed installation is more likely to be treated as a fixture, which affects the capital allowances position, than a battery unit that's genuinely free-standing and could be removed and relocated. This is worth confirming with your accountant before the installation is finalised.

What deposit should I expect?

Hire purchase deposits typically run 15% to 25%, higher than on more established asset classes, reflecting the thinner resale market for used battery systems. A larger deposit, or a personal guarantee from the business owner, can help offset the lender's exposure and improve the chance of approval on a larger system.