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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 - in Wales, Scotland and Northern Ireland only
• 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

In Wales, Scotland and Northern Ireland only, and 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.   

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. 

The efficiency of Feed-In Tariffs (FITs) will be improved at the next formal review, rebalancing them in favour of more cost effective carbon abatement technologies.  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)

From July 2011, businesses, industry and public-sector organisations will be able to receive government subsidies to install renewable heat equipment via the RHI.  It will pay the owners of equipment a tariff per kilowatt-hour of heat produced.  The tariffs last for 20 years, are designed to give a 12% rate of return and will be paid through general taxation.

It is aimed primarily at businesses and householders will not be able to receive payments until October 2012.

The tariffs support a range of technologies and fuel uses including solid and gaseous biomass, solar thermal, ground and water source heat-pumps, on-site biogas, deep geothermal, energy from waste and injection of biomethane into the grid.  Air-source heat pumps are not included from the outset, although they may be added in 2012 once more cost data is available. Another exclusion is district heating – at least initially.  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.