|Policy status:||In Force|
|Policy Type:||Economic Instruments>Fiscal/financial incentives>Grants and subsidies, Economic Instruments>Fiscal/financial incentives>Loans, Economic Instruments>Direct investment|
|Policy Target:||Framework/ Multi-sectoral Policy, Buildings>Non-Residential|
|Agency:||Department for Business, Energy and Industrial Strategy|
Salix Finance Ltd is a private company funded by government to establish energy efficiency revolving loan schemes in the public sector. The company, set up by the Carbon Trust, is developing and delivering innovative spend-to-save programmes to overcome barriers in the public sector that currently prevent cost-effective capital investment projects. Salix is receiving DECC funding of GBP30m from 2008-11 from the Environment Transformation Fund, which builds on the GBP20m it has already received between 2005-08. Salix provides interest free loans to organisations, who are required to provide matched funding and establish an on-going ring-fenced energy saving fund within the organisation. The energy or estates team (typically) then uses this fund to support projects across the estate that pay back into the loan fund using the energy savings they generate. The loans, once established, continue to deliver energy and emission savings over time, with recycled energy savings used to repay the individual project loan and then released for front-line services. In normal circumstances Salix will keep their funding in place until the client runs out of projects. The value of the recycling approach is that the energy costs saved by the projects are fed back into the fund which then supports further projects, which in turn deliver more energy savings and so on. This allows each pound to be used several times over time to generate carbon savings.
Last modified: Thu, 02 Nov 2017 19:48:55 CET