Financing Energy-Efficient HVAC, Solar, and Green Tech

Canadian businesses are facing rising energy costs, aging building systems, and growing pressure to meet sustainability targets.

Whether you operate a foodservice business, warehouse, medical clinic, or multi-unit retail location, energy-efficient equipment upgrades are no longer just “nice to have”—they’re smart business.

But high upfront costs often stall progress.

Fortunately, tailored equipment financing options make it possible to install:

• High-efficiency HVAC and ventilation systems
• Commercial solar panels
• Refrigeration upgrades
• LED lighting overhauls
• Smart thermostats and building controls

…all without tying up your cash flow.

In this guide, we’ll cover:

• What “green” upgrades are commonly financed
• How businesses benefit from efficiency gains
• What loan and lease options are available
• A real-world example of financing for long-term savings

Why Energy-Efficient Upgrades Make Business Sense

✅ Lower Utility Bills

Energy-efficient systems can cut power usage by 20–60%, depending on the asset.

✅ Sustainability Goals

Upgrades help meet ESG mandates, tenant demands, and regulatory compliance.

✅ Boosted Property Value

Green upgrades improve cap rates and resale potential—especially for multi-unit or leased spaces.

✅ Maintenance Savings

Modern systems often require fewer repairs and offer better warranties.

Common Energy-Efficient Upgrades That Can Be Financed

These upgrades can be financed individually—or bundled together under one customized monthly payment.

Financing Options for Green Equipment

1. Equipment Loan

Ideal for businesses that want to own the upgrade and claim long-term depreciation.

✅ Fixed monthly payments
✅ Loan terms from 24 to 84 months
✅ Interest may be deductible*

Explore: Financing & Leasing

2. Operating Lease

Best for rapidly evolving tech (e.g. LED, solar) where upgrades or returns may be beneficial.

✅ Off-balance-sheet possible
✅ Lower monthly payments
✅ Easier to upgrade mid-term

3. Sale-Leaseback for Cash Flow

Already installed the equipment out of pocket? Mehmi can help you refinance it to free up working capital.

✅ Immediate cash injection
✅ Keep using the equipment
✅ Turn capital expense into predictable OPEX

Explore: Refinancing Options

Real Case Study: Financing HVAC & Lighting for a Food Retailer

Business: Ontario-based grocery chain (3 locations)
Need: Replace aging rooftop HVAC and upgrade interior lighting to LED
Challenge: $136,000 project estimate—wanted to avoid capital drain during Q1

What They Did:

• Financed project over 60 months with no money down
• Bundled HVAC units, controls, labour, and lighting install
• Structured repayment to match seasonal sales dips

Outcome:
Cut annual electricity spend by ~38%. Maintenance calls dropped 65%.
Net savings exceeded monthly financing cost by month 9.

What Lenders Look For in Green Equipment Financing

✅ Vendor quote with equipment specs
✅ Photos or diagrams of install site
✅ Business bank statements (3–6 months)
✅ Business registration or incorporation
✅ Credit score (typically 600+)

If you own the property, approval is often easier—but even tenants can qualify with landlord sign-off.

Long-Term ROI: Energy Savings vs. Financing Cost

Many clients see net savings within the first year—especially as utility rates rise.

FAQs: Energy-Efficient Equipment Financing

Can I finance solar panels and HVAC together?
Yes. We can bundle multiple energy-efficient upgrades under one monthly payment.

Can tenants finance upgrades, or do you need to own the building?
Both are possible. Tenants may need landlord signoff for structural changes, but financing is still accessible.

Can I finance retrofits on older buildings?
Yes. As long as the equipment is installable and documented, age of the building isn’t a barrier.

What’s the minimum project size you can finance?
We fund projects starting at $10,000, up to $5M+. Whether you're replacing one unit or retrofitting a full site, we can scale to fit.

Final Word: Sustainability That Pays for Itself

Energy-efficient upgrades aren’t just good for the planet—they’re good for your bottom line.

Whether you’re replacing outdated HVAC, cutting lighting costs, or investing in solar, financing makes these improvements accessible now—with savings that grow year after year.

Looking to upgrade your facility without draining cash reserves?
Speak to a credit analyst or use our calculator to see how energy-efficient upgrades can be financed affordably for your business.