 £51.5 million new loan funding scheme launched for public sector energy saving projects
June 1st 2009
Interest free loans are being offered to public organisations in England to cut their energy bills following the Government budget announcement of £51.5 million of new loan funding.
Applications are now being invited for the first call by 17th July 2009. Other calls will follow until the end of the year or until all loans have been committed.
DECC is providing this new funding in partnership with Salix Finance and the Carbon Trust. The funding is available through Salix Finance, the provider of loans to public sector organisations for energy saving initiatives. The loan fund will help save around £18 million and 100,000 tonnes of CO2 per year. It will complement the existing match funding programme offered by Salix Finance which has some £90m of funding operating with 128 public sector clients in the UK.
Loans will be made available for 100% of the projects cost provided that they meet agreed criteria that deliver energy efficiency savings and reduce costs. The interest-free loans will be repaid over a four year period in eight equal instalments, with the first payment being March 2011.The payments should be covered by the energy savings made. This new interest free loan scheme has already attracted a high level of interest from across the whole of the public sector.
With a raft of legislation such as the Climate Change Act, the carbon reduction programme (CRC) and the 2010 Kyoto agreement targets fast approaching, pressure is being placed on the public sector to reduce its carbon footprints.
Departments and other public sector organisations have sustainability targets incorporated into performance agreements and this new fund will enable them to practically demonstrate their commitment to improving the energy efficiency of their estates. In leading by example, the public sector can help drive performance across the entire economy.
Further information on the application process, criteria for project funding and further deadlines for applications is available on the Salix Finance website www.salixfinance.co.uk/loans More articles from WEE News Desk: | 
