Energy-Efficiency Loan Scheme
For businesses interested in reducing their carbon footprint and saving costs on heating the Carbon Trust offer energy-efficiency loans of between £5,000 and £200,000.
Energy-efficiency loans are typically used to upgrade heating systems where old inefficient boilers can be costing small businesses thousands of pounds every year. Modern boiler and heating systems have become incredibly efficient, use less energy and obviously cost less to run. Although the initial costs may be high, the loans help to absorb the primary costs. As well as reducing carbon emissions, energy-efficiency can add to a company’s bottom line.
In England and Scotland the energy-efficiency loans are available to SMEs, and in Wales to all businesses, subject to regional eligibility.
Eligible businesses must have been trading for at least 12 months and the loans have no arrangement fees, are interest-free and are repayable over a period of up to 4 years.
In Northern Ireland the energy-efficiency loan scheme is again open to businesses that have been trading for 12 months and is for amounts of up to £400,000.
To qualify as an SME, small businesses must fit the EU definition which means:
- The business must have less than 250 full-time employees or the equivalent
- The enterprise must have less than E50 million in turnover and/or less than E43 million in assets
- There must be no controlling stake in the business from a non-SME of more than 25%, so the SME must not be part of a larger organisation.
There are, however, restrictions on certain sectors which are not eligible to apply for energy-efficiency loans. These sectors include:
- Fisheries & Aquaculture
To find out how your small business can apply, see the Carbon Trust’s 0% business loans page.
© 2008 Carbon Trust