One of the main barriers to businesses implementing energy efficiency or renewable energy projects is the availability of finance. The Carbon Trust can help to overcome that hurdle by providing interest free, unsecured loans from £3,000 to £200,000.
1 Note that loans repayments will still need to be made, regardless of whether the projected savings are actually achieved.
Interest free loans may be available to businesses meeting the following criteria:
Private sector SME* in Wales
Business has been trading for the minimum period (Limited company 12 months, Unincorporated 36 months)
Business has an acceptable credit history
Project replaces existing equipment, and makes on-site fossil fuel savings
Business operates in a permissible sector under de minimis state aid regulations, and has not exceeded current limits **
* The EU definition of an SME is an organisation with:
**EU rules on state aid mean we are not normally able to offer business loans for the acquisition or adaptation of vehicles, to organisations involved in primary production of agricultural products (which includes horticulture, dairy, wine-making – click here for the full list), the fisheries and aquaculture sector, or for export-related activities.
A wide range of energy efficiency or renewable energy projects can be considered for an interest free loan, providing they meet the on-site fossil fuel use saving requirement. Examples of just some of the projects which could qualify include the following:
Building TechnologiesAir conditioning
Solar thermal systems
Industrial Process TechnologiesCompressed air
Variable speed drives
Air and ground source heat pumps
Some technologies are eligible for Enhanced Capital Allowances. For more information visit the Energy Technology list.
Business loans are available from £3,000 - £200,000. The size of the loan will be based on the projected CO2 savings of a project and for every 1.5 tCO2 your project is expected to save per annum we can provide finance of £1,000. The projected CO2 savings will be independently assessed by the Carbon Trust.
Loans are designed such that in most cases the monthly energy cost savings should exceed the monthly repayments. Loans are repaid over 1 to 4 years in line with project payback periods.
To see how much you could potentially borrow, try our Loan Calculator (excel).
Multiple loans are available up to the maximum loan amount.
Representative example of a 0% APR loan: £12,000 loan over 48 months = monthly repayments of £250. Total repayable £12,000.”
View the video below to find out how your organisation can take advantage of both the Green Business Fund and 0% Loans schemes to overcome the project finance barrier:
In a time when banks seem unwilling to lend to SMEs, the Carbon Trust proved an enthusiastic and knowledgeable partner to help us achieve our environmental targets.
Richard Haigh, Capital Valley Plastics
Before you apply:
Before applying, please read these step-by-step guides
Before completing the online application form, please collect all documents in the ‘What we need’ checklist, and also complete the following:
The Carbon Trust is authorised and regulated by the Financial Conduct Authority for consumer credit. The Carbon Trust is a company limited by guarantee, registered in England and Wales (number 04190230) with its registered office at 4th Floor, Dorset House, 27-45 Stamford Street, London, SE1 9NT.