Zenex Solar Ltd, which was founded last year and began trading in February, has established itself as a leading supplier to the trade after securing exclusive distribution agreements with two global manufacturers.
To support Zentex's rapid growth NatWest and RBS Invoice Finance has provided the company with a new £2.5m flexible working capital facility.
The demand for solar panel technology continues to grow due to rising energy costs and government incentives designed to encourage the use of renewable energy such as the introduction of Feed-In Tarrifs. These tarrifs involve power companies paying homeowners for any excess energy generated by their solar panels. This is then transferred to the National Grid.
It costs around £10,000 to install a typical domestic solar panel system, which has a lifespan of up to 30 years. With savings of up to £1,000 per year to be made from reduced energy bills and via the Feed-In Tarrifs, most systems pay for themselves within a decade.
Zenex import and supply the solar panels and all the components required to install the kit. All product installers must hold a Microgenration Certification to benefit from the Feed-In Tarrifs.
Zenex is part of the Evoco Energy Group, a company which speclaises in the development of small scale wind turbines for commercial and domestic use.
Julian Riley, Zenex Solar's Managing Director, said: "Since we commenced trading in February the demand for our products has increased month on month. Securing UK exclusivity to distribute LG and JA Solar's products has been a major achievement for us in terms of establishing the reputation and credibility of the business. The solar panel market in the UK has enormous potential and we are confident of further business growth once the benefits of using this technology become more widely known."
Colin Andreassen from RBS Invoice Finance and Lynne Swerdlow from NatWest provided the funding. Colin, a Business Development Manager at RBS, said: "Julian and his management team have made significant progress in just eight months of trading. The flexible funding package we have provided ensures they have the capital to continue growing the business."