The UK Green Investment Bank (GIB), its fund manager Sustainable Development Capital LLP (SDCL) and SI Capital R&S1 have allocated a further £2m to help SMEs invest in energy efficiency, it has been announced.
The money will be channelled into ReEnergise Finance Ltd’s Smart Energy Finance vehicle, which offers loans for energy efficiency projects, with a focus on UK-based public and private sector SMEs. Eligible projects include biomass boilers, combined heat and power and low energy lighting, with typical loans ranging from £25,000 to £400,000. A range of organisations, including training providers and a garden centre, have already secured loans to fund biomass and lighting projects.
In 2012, GIB invested £50m into the Smart Energy Finance vehicle to help finance small-scale energy efficiency projects. The additional money is expected to fund up to 20 projects, using a model that will save businesses around 20% on their energy bills from the outset.
“The investment announced today will help small businesses across the country to save money. Energy is a significant cost for any company, and putting in place energy efficiency measures will have a real impact on these organisations’ bottom line,” said Shaun Kingsbury, Chief Executive, UK Green Investment Bank. “The funding model means that they won’t need to find the capital upfront, and can pay for the capital costs from the savings they make on energy bills. Energy efficiency makes good commercial and environmental sense,”
Business and Energy Minister Michael Fallon added: “This is a welcome investment that helps small businesses and shows that going green isn’t just about building offshore wind farms or new energy plants. Any good business should want to become more efficient and saving on energy costs makes good business sense.”