Zero Carbon Accelerator

Service or Concession Agreement

Green Funding & Finance Finder

Service or Concession Agreement

A Project Sponsor can enter into a Service or Concession Agreement with a third party to deliver a project. The third party would be the asset owner and operator, responsible for funding the project. Where a Concession Agreement is used, there are two methods of funding:

  1. Assets are funded by the third-party: The third party is responsible for funding the project and then receives an agreed payment from the Project Sponsor and/or customer.
  2. Third party adopts assets: The Project Sponsor is responsible for funding/securing funding for the project through internal reserves, lease funding and/or grants. The third party would then pay the Project Sponsor for rights to use (‘adopt’) the assets.

Status: Open

Category: Innovative

Eligible applicants:

  • Community group
  • Cultural and heritage institution
  • Education provider
  • GLA group
  • Health provider
  • Local authority
  • Social housing provider

Minimum amount: (not specified)

Maximum amount: (not specified)

Return requirement: Yes

Maximum loan term: (not specified)

Rate: (not specified)

In a third party delivery model, the Project Sponsor relinquishes control over the project’s delivery to a private sector third party. The private sector body takes on the responsibility of funding, constructing and operating the project. While this reduces the risk for the Project Sponsor, it also means the Project Sponsor has less direct control over the project outcomes and benefits less from the financial rewards of the project. This model can be beneficial if the Project Sponsor lacks the resources or expertise to undertake the project themselves.

Eligible projects:

  • Non-domestic fabrics and energy efficiency
  • Renewables (PV)
Find out more

Please note: the Green Funding and Finance Finder may not be absolutely comprehensive. We strongly advise you to confirm all details directly with the relevant fund managers.

Green Funding & Finance Finder

Find more green funding and finance opportunities for your net zero project in the Green Funding & Finance Finder.

Use the tool