New 2016 capital funding of energy saving projects for SMEs.

The Carbon Trust is launching a new fund providing capital for smaller businesses to replace old, power-guzzling equipment, together with expert advice to boost the efficiency and productivity of businesses in England, Scotland and Wales.

Access to capital funding

Capital expenditure or capital expense (capex) is an expense where the benefit continues over a long period, rather than being exhausted in a short period. Such expenditure is of a non-recurring nature and results in acquisition of permanent assets. It is thus distinct from a recurring expense.

The £7m fund has been made available to SMEs on a first come-first served basis, and will offer energy saving training, cost saving assessments, implementation advice, and capital support for the installation of energy efficiency equipment.  Eligible companies can apply for a capital contribution to cover up to 15% of an energy efficiency project or equipment replacement cost, up to a maximum of £10,000.

Wide range of projects and equipment funded

The fund can also be used to purchase a range of equipment, including energy efficient lighting, Heating, Ventilation and Air Conditioning (HVAC) variable speed drives, and energy efficiency controls – vital equipment across a range of business sectors, including manufacturing, retail, and hospitality.

Fund launched 18 April 2016

The scheme is expected to support 1000 to 2000 smaller businesses across England, Scotland and Wales.  It is expected to enable participating businesses to invest £55m in energy saving projects which would deliver them lifetime energy savings of almost £130m.   The programme will focus on high quality implementation to ensure the best energy efficiency opportunities are fully realised.  The Green Business Fund will launch on Monday 18^th April 2016.  Click here for further information and to apply.

Hugh Jones, Managing Director, Advisory, at the Carbon Trust says “Our experience of working with thousands of companies across the UK indicates that year-on-year savings of 20% to 30% can be delivered through action on energy efficiency.  We’d encourage smaller companies to apply to make the most of the fund on offer in order to realise significant savings on their bottom line.”

To accompany the announcement, new research of senior decision makers within SMEs found that almost half (46%) are concerned about the amount they currently spend on energy.

– 37% of businesses nationwide would like to take more action to improve energy efficiency.

– Lack of money to invest in new energy saving equipment and lack of affordable options to improve energy efficiency rank as the largest barriers for businesses to improve their energy efficiency (23% for each).

To date, the Carbon Trust has saved British business £5.5bn and 55Mt CO₂ through advice and financial support.

For information on SME workshops can be found here.

 More energy saving products available from 999 Automation