As the demand for clean energy continues to rise, energy companies are ramping up their investments in renewable energy projects—ranging from solar farms and wind turbines to bioenergy and geothermal initiatives. But turning sustainable ideas into operational reality requires more than innovation and infrastructure—it demands access to capital.
At Union Savings Bank, we understand the unique financial challenges and opportunities in the renewable energy sector. Whether you’re a developer launching a large-scale solar project or an energy company expanding into wind power, securing the right financing is critical to success.
In this post, we’ll explore key types of renewable energy financing available through commercial lending channels, including green energy loans and project financing, to help power your next big project.
Project Financing: Powering Big Ideas
Project financing is one of the most popular methods for funding large-scale renewable energy initiatives. Unlike traditional loans, project financing relies on the projected cash flows of the project itself—rather than the balance sheet of the borrower—to secure funding.
Why it works for energy companies:
- Non-recourse or limited-recourse structure reduces risk to the borrower.
- Ideal for large, capital-intensive projects like utility-scale solar or offshore wind.
- Attracts multiple stakeholders, including lenders and investors, through special purpose vehicles (SPVs).
At Union Savings Bank, our commercial lending team works with clients to tailor financing structures that meet the unique cash flow timelines and regulatory considerations of renewable energy projects.
Green Energy Loans: Funding with a Mission
Green energy loans are designed specifically to fund environmentally sustainable projects. These loans often come with favorable terms, such as lower interest rates or longer repayment periods, to encourage investment in clean technologies.
Benefits of green loans:
- Demonstrates a company’s commitment to environmental, social, and governance (ESG) goals.
- May qualify for federal or state incentives, including tax credits and grants.
- Flexible applications—from upgrading existing infrastructure to launching new renewable installations.
For businesses in Connecticut, local and state programs can further enhance the affordability of green loans. Our team stays up to date on available incentives and can help energy companies maximize their financing potential.
Additional Financing Options
Beyond project financing and green loans, energy companies may also explore:
- Equipment financing for solar panels, wind turbines, and energy storage systems.
- Lines of credit to cover short-term operational costs during project development.
- Bridge loans to fill funding gaps between project phases or grant disbursements.
Let’s power the future—together.
Contact Union Savings Bank’s Commercial Lending Team
Ready to explore your financing options for a renewable energy project? Connect with one of our commercial lending specialists today. Learn more.
All loans and lines are subject to credit approval.
