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Funding & Incentives

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

To encourage the deployment of additional small scale low carbon energy generation, particularly by organisations, businesses, communities and individuals, the Government is introducing two incentive ‘Clean Energy Cashback’ tariffs: FITS and RHI as outlined below.

Some grant schemes have closed for good, for example: Low Carbon Buildings Programme and Bio Energy Capital Grant Scheme.  Others are currently closed to new applications: HFCE Revolving Green Fund and Salix, and future plans are uncertain.

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

• Carbon Trust Funding for Consultancy
• Carbon Trust Energy Efficiency Loan
• Enhanced Capital Allowances (ECAs)
• Feed-In Tariffs (FITS)
• HEFCE Revolving Green Fund for Higher Education institutions
• Renewable Heat Incentive (RHI)
• 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 about 1000 projects for the Carbon Trust.  

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 £100,000 (£500,000 in Northern Ireland).  The amount offered is based on the tonnes of CO₂ emissions per year that the investment will save (minimum of 2.5 tonnes per £1000 of loan).
• 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, Wales and Scotland: SMEs only. (For definition of SME etc, please see below.)
• Eligibility – 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 £42.5M) and/or less than €43m assets (approximately £36.5M) 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 - with the exception of English farmers and fisheries. 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

Feed-In Tariffs (FITS)

These are for electricity generation and went live on 01 April 2010.  They work alongside the Renewables Obligation (RO), which will remain the primary mechanism to incentivise deployment of large-scale renewable electricity generation.  more

HEFCE Revolving Green Fund for Higher Education Institutions

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

Renewable Heat Incentive (RHI)

This is to incentivise generation of heat from renewable sources at all scales and, subject to confirmation after consultation, will come into effect in April 2011.  It will guarantee payments for those who install technologies such as biomass boilers, ground source heat pumps and air source heat pumps.

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.