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Carbon Trust Interest
Free Loans |
Energy-Efficiency Loans
Scheme
Financial Services offered
by the Carbon Trust
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
Basics of the scheme
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.
Who can apply?
Small or medium-sized enterprises (SME’s) throughout the whole of the UK as
well as any sized organisation in Wales or Northern Ireland.
An SME is defined as a business employing less
than 250 full-time equivalent employees having an annual turnover of €50m
or €43m assets, and less than 25% owned by a non-SME.
In
addition to the threshold changes, the following private sector
businesses* are ably to apply for an Energy-Efficiency loan:
England and Scotland
SME’s and also enterprises with annual electricity spend of less than
£500,000.
Wales and Northern Ireland
SME’s, enterprises with annual electricity spend of less than £500,000
and also any other size enterprises.
How much can they borrow?
SME's in England and Scotland borrow
between £3000
to £400,000 and SME's in Wales and Northern Ireland can borrow between
£3000 to £400,000*.
Businesses will undergo credit checks and need
to have been trading for a minimum of 12 months.
*Subject to local funding conditions
Who can’t apply
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)
How much can be lent to a
single customer?
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: enquiries@abac.co.uk
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