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Funding

The Green Consultancy advises on sources of funding and capital allowances towards the cost of undertaking work to reduce energy consumption.

There are a number of schemes that can contribute towards the costs associated with making energy savings.  These schemes vary according to circumstances and are subject to change. We advise on availability and assist in identifying suitable projects and making applications.

Brief descriptions of the following schemes are given below. For more information please contact Michael Webb.

• Carbon Trust Funding for Consultancy
• Bio Energy Capital Grant Scheme
• Carbon Trust Energy Efficiency Loan
• Department of Health Energy Efficiency Fund
• Enhanced Capital Allowances (ECAs)
• HEFCE Revolving Green Fund for Higher Education institutions
• Low Carbon Buildings Programme, Phase 2 (LCBP2)
• Salix Finance

Carbon Trust Funding for Consultancy

Depending on client circumstances and current funding rules, many of The Green Consultancy's services can be partly or fully funded by the Carbon Trust and we will advise on this when discussing your requirements. We have carried out over 900 projects for the Carbon Trust.  

Bio Energy Capital Grant Scheme

This DECC scheme supports the installation of biomass-fuelled heat and combined heat and power projects in the industrial, commercial and community sectors in England.  The fifth round of the scheme has closed for new applications with decisions expected June 2009.  Further rounds may follow.

The scheme has:

• provided capital grants to support the installation of biomass-fuelled heat boilers and biomass-fuelled combined heat and power (CHP) equipment, including anaerobic digesters for heat-only or CHP.
• been open to the industrial, commercial and community sectors including public and private limited companies, sole traders, farmers, local authorities, hospitals, universities, schools, housing associations, charities etc.
• provided a variable grant rate of up to 40% of the difference in cost of installing the biomass boiler or CHP plant compared to installing the fossil fuel alternative.  more 

Carbon Trust Energy Efficiency Loan

To help private sector organisations make energy/carbon saving investments, the Carbon Trust has made its Unsecured Interest Free Loan scheme more generous and relaxed its eligibility criteria. 

Key Points

• Purpose: loans are available for investment in reducing energy consumption in buildings or in industrial processes (or both).
• Loan size: £3,000 to £500,000.  The amount offered is based on the tonnes of CO₂ emissions per year that the investment will save.
• Conditions: interest free with repayments made monthly over up to five years based on the amount saved as a result of the investment.  No arrangement fees and applying is straightforward via website.
• Eligibility – England and Scotland: SMEs and other enterprises that don't qualify for participation in the Carbon Reduction Commitment (CRC).  The latter typically have an electricity consumption under £500k pa.  (For definition of SME etc, please see below.)
• Eligibility – Wales and Northern Ireland: SMEs and other enterprises of any size.  (For definition of SME etc, please see below.)
   

SMEs are defined by the EU as having less than 250 full time equivalent employees, with less than €50m Turnover (approximately £43M) and/or less than €43m assets (approximately £37M) with no controlling interest of more than 25% by a non-SME if part of a larger organisation. 

Business classified as primarily agriculture, fisheries, aquaculture, transport, coal or export related are excluded from these loans under EU regulations.  However, English farmers and fisheries will be able to apply for loans from 1st February 2010. more 

Enhanced Capital Allowances (ECAs)

ECAs enable businesses to claim 100% first-year capital allowances on their spending on qualifying plant and machinery. There are three schemes for ECAs: (1) Energy-saving plant and machinery (2) Low carbon dioxide emission cars and natural gas and hydrogen refuelling infrastructure (3) Water conservation plant and machinery.

Businesses can write off the whole of the capital cost of their investment in these technologies against their taxable profits of the period during which they make the investment. This can deliver a helpful cash flow boost and a shortened payback period.  more

HEFCE Revolving Green Fund for Higher Education Institutions

A new source of finance provided jointly by HEFCE and Salix Finance and managed by Salix (see below).  more

Low Carbon Buildings Programme, Phase 2 (LCBP2)

This DECC scheme is currently only available for public sector organisations (including schools, hospitals, housing associations and local authorities) and charitable bodies. The scheme is managed by BRE. From 1st April 2008, organisations can apply for 50% of the cost for installing approved microgeneration technologies. It is anticipated that funds will be committed through to mid-2009, but this will depend on the actual rate of applications.  more

NHS Energy & Sustainability Capital Fund

The Energy & Sustainability Capital Fund (2007-2009) is closed to any further bids. There are no details yet available on any funding that may be available in the future. more

Salix Finance

An independent company funded by the Carbon Trust. It operates a number of schemes providing low cost finance to public sector organisations investing in energy saving capital expenditure including: Local Authorities, NHS Foundation Trusts, Central Government Departments and FE Colleges.  For deadlines for applications etc see more.

For examples, please see the following links:

HM Prison Wellingborough (Carbon Trust)

ISS Facility Services (Carbon Trust)

University of the West of England (Salix)

For more information please contact Michael Webb.