Energy-Efficiency Loans
Scheme
How the Carbon Trust can
assist your business
The carbon Trust makes available to
businesses Interest free loans and tax advantages to help them invest in
equipment that will reduce carbon emissions. This is done by:
-
Providing
interest free loans based on Energy Savings
-
Reducing the net
purchase cost through ECAs
Energy-Efficiency Loans
The
loans are interest free and
unsecured with no set up fees, annual fees or consultant / lawyer fees as
well with no need for Director guarantees or charge over assets. The
process is simple and straightforward, e.g. if a customer borrows £20k they
pay £20k back.
Eligible companies
- Private sector organisations can
apply for a loan. Public sector organisations are not eligible for
loans
- Trading for at least 12 months
- All small or Medium-sized
Enterprises (SME)
The EU definition of an SME is an organisation with:
- Fewer than 250 full time or
equivalent employees
- An annual turnover not exceeding €50
(approximately £42.5m) and assets not exceeding €43m (approximately
£36.5m)
- No controlling interest of more than
25% by a non-SME
EU rules on state aid mean we are not normally able to offer
business loans for the acquisition or adaption of vehicles, or to
organisations involved in agricultural or fisheries products
(production, processing, or marketing prior to the first sale), or
export-related activities. However farmers in England can apply for
a business loan of up to £200,000. For more information call our
Loans Advice Team on 01865 885846.
Business loans are available
from £3,000 - £100,000. The size of the loan offered and its repayment
period will be based on the projected CO2 savings of a project, which will
be assessed by the Carbon Trust.
Farmers in England can apply for a loan of
between £3,000 and £20,000.
Multiple loans are available up to the
maximum loan amount.
Loans offered under EU de minimis state aid rules:
All businesses can apply with the exception of the following sectors who cannot apply for a loan:- Agriculture,
Fisheries and Aquaculture, Export, Coal and Transport.
SME’s in England and Scotland and all businesses
in Wales & Northern Ireland that have enough potential energy savings.
What equipment can be
purchased?
Any equipment that generates an on-site
fossil fuel energy saving as part of the ‘project’ equivalent to 1.5 t CO2
/ £1000 of loan.
Equipment does not need to be listed on the
Energy Technology List of the ECA scheme.
Examples range from compressors, heat
recovery, through to CHP or renewables.
Projects may be co-joined (say, compressed
air heating and lighting)
Up to £200,000 to an SME in England, either as one loan of £200,000, or a
multiple of loans not exceeding £200,000 and subject to the minimum loan
value of £5,000. e.g. even if you have already had a loan, you can have
another if it is less than £195,000.
Scheme changes
Changes to the Defra emission factors include a
significant change to Electricity which equates to a reduction from 29,711
to 23,929 kWh of electricity per £5000 loan.
The Carbon Trust reduced the threshold of CO2
/ £1000 of loan from 2 t CO2 to 1.5 t CO2 which
equates to a reduction from 18,621 kWh of electricity per £5000
loan to 8,379 kWh of electricity per £3000 loan.
Both changes equate to a 37% reduction.
Brochure and marketing material
•
Supplier brochure – LNS067
•
Customer brochure – LNS068
•
Carbon Trust Support for SMEs –
PFL331
Examples of loans and
savings required to finance air compressor purchase
|
Size (kW) |
Hours |
(PA) Energy Saving
over existing |
Loan
|
| 11 |
8064 |
25% |
£5.9k
|
| 15 |
5376 |
25% |
£5.4k
|
| 22 |
3456 |
25% |
£5.1k
|
| 37.5 |
2016 |
25% |
£5.0k
|
| 22 |
6048 |
25% |
£8.9k
|
Example of a typical loan
|
Compressor |
Loan
|
£16.9k |
Term
|
3 years |
Repayment
|
£469/mth |
Saving
|
£7,947 (£662) |
CO2 saving
|
47t/yr |
Helpful Information
How to apply for a loan:
http://www.carbontrust.co.uk/energy/takingaction/howtoapply
How to get started:
Carbon Trust Application Guide (133kb)
Carbon Trust Loan Calculator:
https://www.carbontrust-online.co.uk/carboncalculator
Case studies:
Carbon Trust Case Studies
Further information on loans
FAQs
ABAC can help you applying for a Carbon Trust Loan, do a compressed air
audit or guide in the choice & implementation of energy saving equipment.
Please email:
abac.enquiries@abac.co.uk
|
