Carbon Trust Funding

Funding for investment in new, energy-efficient equipment can be a barrier for small businesses, especially during a recession. However the Carbon Trust offers unsecured, interest-free Energy Efficiency loans of between £3,000 and £100,000 to replace old, inefficient equipment with energy saving models.

A Carbon Trust loan may provide your customers with the help they need to overcome capital cost barriers and encourage them to progress projects you may already be working on together.  Please find more information below and aso see the downloads available from the links below:

• Carbon Trust Customer Leaflet
• Case Study 1
• Case Study 2

Helping your clients upgrade equipment and cut energy costs

Upgrading to the latest energy efficient equipment can help many customers reduce energy costs, modernise production and become more competitive. And with few businesses keen to take out loans for capital investment right now, the Carbon Trust’s government funded 0% business loans are the perfect solution.

The Carbon Trust’s 0% loans: benefits for purchasers and suppliers:

• Businesses can acquire the latest equipment, effectively paid for with the monthly energy savings that it  produces
• Suppliers of energy efficient equipment can grow their market
• Reduced carbon emissions help to mitigate the long-term impacts of climate change.

What energy saving equipment is eligible?

Because loans are offered on the basis of on-site CO2 savings, any equipment that saves enough energy can be considered. Examples of eligible equipment include lighting, refrigeration, air conditioning, power units, boilers, air compressors, power drives or larger-scale refurbishments of steam generating plant. While not a ‘replacement’, insulation may also qualify under the scheme as the loan would be paid off with the energy savings that result from its use. Each application is individually assessed on the basis of its energy savings and the technology involved.

Loans up to £100,000

To establish the loan value, the Carbon Trust will assess the amount of CO₂ that will be saved as a result of investing in the energy saving equipment.

The value of the loan offered will depend on the amount and type of energy saved. To help work out how much can be borrowed, you can use our online calculator at www.carbontrust.co.uk/loancalculator

Repayment periods

Repayment periods are set at a maximum of four years, with monthly repayments calculated to be covered by energy savings. Based on the calculated CO2 saving the Carbon Trust will quantify the payback period which will be between 12 and 48 months. Once the loan is fully paid off, the continued savings on energy costs will go straight to the company’s bottom line.

Eligibility criteria

The following are eligible:
• SMEs, defined as companies with fewer than 250 full time employees and with less than €50  million in turnover (approximately £43m) or less than €43 million in assets (approximately  £37m).
• Larger businesses that don’t fall under the Carbon Reduction Commitment should now also qualify for a  loan – this typically equates to those that spend less than £500,000 a year on electricity.

In order to comply with EU guidelines on State Aid, companies operating in agriculture, fisheries, transport or export-related activities are not eligible.

For businesses not eligible for a 0% loan, alternative energy-saving advice and support can be found at www.carbontrust.co.uk/

No security or arrangement fees required – and a decision in 24 hours.

Loans are granted on an unsecured basis and there are no arrangement fees to pay. Applications get a response within 24 hours.

A straightforward online application process

To apply for an interest free energy-efficiency loan visit www.carbontrust.co.uk/loans or alternatively please refer any queries your customers may have through to our dedicated Loans Advice team on 01865 885850.

While businesses need to support their applications with full details of the proposed energy saving project and the estimated energy savings, these can be provided by the supplier of the new equipment.Important change to 0% loans eligibility criteria

From 9 July 2010 the amount of CO₂ that must be saved per £1,000 of loan will increase from 2t CO₂ to 2.5t CO₂ and the loans will only be available to companies which meet the EU definition of an SME.

Applications which have received a conditional offer by 9 July and an unconditional offer by 23 July are not subject to these changes. All applications submitted after 9 July or applications which receive an unconditional offer after 23 July will be subject to the new eligibility criteria.

Workshops and support

For businesses that don’t have a specific upgrade in mind, the Carbon Trust offers free support to help them identify promising energy-reducing technologies. More information is available at www.carbontrust.co.uk

Help for suppliers

At a time when businesses are finding it hard to get the capital they need, our 0% loans are a very useful deal closer for suppliers of energy efficient equipment. Information Suppliers will find advice on helping their customers apply for a loan at www.carbontrust.co.uk/suppliers and on 0800 917 3030.

About the Carbon Trust

The Carbon Trust is an independent, non-profit company. It was set up by the Government to work with UK business and the public sector to reduce carbon emissions now through practical advice and support, and to develop commercial low carbon technologies for the future.

The following information about the Carbon Trust loans scheme with your network of customers as the scheme could encourage them to progress projects you may already be working on together.