Amid rising concerns over energy prices, many businesses are re-evaluating their energy consumption and exploring sustainable alternatives. In a recent survey, 61% of energy decision-makers at UK organisations identified energy security as one of the top three drivers for energy decarbonisation. However, while a third of executives are renegotiating energy contracts, only 19% have invested in on-site renewable energy generation. This indicates a need for capital investment to drive substantial change.
Ambic Manufacturing, a North-East-based company specialising in bespoke contract furniture, recognised this need firsthand. Known for producing high-quality, robust furniture for various industries - ranging from leisure and retail to marine and medical - Ambic's County Durham manufacturing centre heavily relies on energy-intensive CNC machinery. With energy costs escalating, the company faced unsustainable operational expenses.
Realising that generating its own energy was crucial to remaining competitive, Ambic initially planned to install solar panels at its Chester Le Street factory with a modest capital investment. However, after consulting with finance broker Anglo Scottish, the company discovered that by increasing the investment, it could achieve complete energy self-sufficiency.
Unable to finance the project entirely with its own funds, Ambic sought a suitable financing partner. Anglo Scottish facilitated this process, identifying Siemens Financial Services (SFS) as the ideal financier. SFS, known for its tailored financial solutions, offered a package that aligned with Ambic’s commercial needs and the specific requirements of the solar installation.
The seven-year financing arrangement provided by SFS was structured to ensure that the energy savings generated by the solar panels would cover nearly the entire cost of the initial investment. This innovative approach has allowed Ambic to keep its electricity costs below previous levels while servicing the debt for the new asset.
Liam Hunt, Managing Director at Ambic, praised the process: “Communication throughout the whole process was fantastic. Charlotte Enright at Anglo Scottish and SFS looked at what we needed and created a bespoke solution for us which met our needs entirely and made the whole process a lot easier.”
With the solar installation in place, Ambic anticipates saving £1.94 million over 25 years and eventually operating on 100% renewable energy. Hunt added, “At the end of the day, the numbers don’t lie. Using finance for this large purchase has allowed us to keep cash in the bank, which we can reinvest and use to fund new customer projects.”
Emma Gallagher, Internal Sales Account Manager at Siemens Financial Services UK, highlighted the broader implications: “Even though the benefits are clear, not enough businesses are seizing the opportunity to invest in sustainability and take control of their energy costs. Ambic is among a proactive group of businesses that have set ambitious goals and found the means to achieve them—with a little financing support, of course!”
Pictured: Ambic customer, The Sage Gateshead.