1. Financing Energy Saving Projects
Sustainex
March 2013

2. Agenda
› Introduc)on
to
the
Carbon
Trust
› The
energy
efficiency
opportunity
› Interest-­‐free
Energy
Efficiency
Loan
Scheme
› Energy
Efficiency
Financing
Scheme

3. The
Carbon
Trust
› We
are
an
independent,
expert
partner
of
leading
organisaBons
around
the
world,
helping
them
contribute
to
and
benefit
from
a
more
sustainable
world
-­‐ We
advise
businesses,
governments
and
the
public
sector
on
their
opportuniBes
in
a
sustainable,
low
carbon
world
-­‐ We
measure
and
cer)fy
the
environmental
footprint
of
organisaBons,
products
and
services
-­‐ We
help
develop
and
deploy
low
carbon
technologies
and
soluBons,
from
energy
efficiency
to
renewable
power
› We
are
not
for
dividend,
with
surpluses
from
our
commercial
acBviBes
reinvested
into
our
mission
› We
have
about
150
employees
working
around
the
world
from
offices
in
the
UK
and
China
Our
mission
is
to
accelerate
the
move
to
a
sustainable,
low
carbon
economy
3

4. Business
Advice
Helping
businesses
capture
the
opportuniBes
in
the
move
to
a
low
carbon
economy
Public
Sector
Advice
Enabling
the
public
sector
to
develop
carbon
management
strategies
to
cut
energy
costs
and
carbon
emissions
Government
Advice
Providing
cuNng-­‐edge
policy
advice
and
insights
on
the
transformaBon
of
markets
towards
a
low
carbon
economy
We
advise
businesses,
governments
and
the
public
sector
on
their
opportuniBes
in
a
sustainable,
low
carbon
world
What
we
do:
Example
clients:
4

5. We
measure
and
cerBfy
the
environmental
footprint
of
organisaBons,
products
and
services
Measuring
Understanding
the
environmental
impact
of
your
organisaBon,
products
and
supply-­‐
chain
and
how
reducing
it
can
create
a
beOer
business
Cer)fying
Providing
independent
verificaBon
that
can
make
your
business
thrive
in
a
low
carbon
economy
What
we
do:
Example
clients:
5

6. We
help
develop
and
deploy
low
carbon
technologies
and
soluBons,
from
energy
efficiency
to
renewable
power
Implementa)on
and
Finance
Providing
experBse,
equipment
suppliers
and
financing
to
help
your
business
put
energy
efficiency
plans
into
acBon
Innova)on
Helping
you
create
value
from
the
clean
technology
revoluBon
What
we
do:
Example
clients:
6

7. Agenda
› IntroducBon
to
the
Carbon
Trust
› The
energy
efficiency
opportunity
› Interest-­‐free
Energy
Efficiency
Loan
Scheme
› Energy
Efficiency
Financing
Scheme

8. The
case
for
invesBng
in
energy
efficiency
is
compelling
8
0
10
20
30
40
50
Renewable
energy
(inc.
subsidies)
Typical
business
investments
Energy
efficiency
Internal
rate
of
return
(%)
Typical
returns
from
energy
efficiency
measures
relaBve
to
other
investments
40-­‐50%
10-­‐15%
5-­‐10%
Source: Carbon Trust analysis

9. The
opportuniBes
are
found
in
every
sector
and
every
business
Opera)onal
Efficiency
and
Behavioural
Change
Low/no
cost
savings
through
measuring
and
monitoring
energy
use,
staff
engagement
and
appropriate
improvements
to
the
use
and
maintenance
of
exisBng
equipment
Building
Energy
Efficiency
Investment
in
new
building
technologies
including:
•
Controls
•
Air
condiBoning
•
LighBng
•
VenBlaBon
•
HeaBng
Industrial/Process
Energy
Efficiency
Investment
in
new
industrial
technologies
and
processes
including:
•
Motors
&
drives
•
RefrigeraBon
•
Compressed
air
•
Process
heaBng
•
Process
controls
Renewable
Energy
Investment
in
equipment
to
generate
local
renewable
heat
or
electricity:
•
Biomass
•
Solar
(thermal/PV)
•
Heat
pumps
•
CHP
•
Wind
•
Waste
to
energy
9

10. 

It
is
no
surprise
a
lot
has
been
achieved
…but
a
lot
more
sBll
needs
to
be
done
35,000
On
site
surveys
delivered
75%
Of
FTSE
250
we
have
worked
with
£1.6bn
Energy
Efficiency
CAPEX
we
have
helped
our
customers
implement
£4.5bn
Energy
savings
since
2001
60%
Energy
Saving
recommenda)ons
not
yet
taken
forward
Carbon
Trust
impact
to
date
But…
50,000
Advice
line
calls
per
annum
10

11. • Awareness
of
opportuniBes
within
both
the
sector
and
own
operaBons
• Lack
of
appreciaBon
of
returns
available
• No
clear
prioriBsaBon
roadmap
We
have
idenBfied
three
main
barriers
to
implementaBon
Lack
of
funds
Lack
of
awareness
Lack
of
confidence
• CompeBng
pressures
on
available
capital
• Lack
of
finance
available
in
business
• Split
incenBves
(landlord/tenant,
departmental
budgets
–
capex/opex)
• Business
horizons
Common
barriers
Details
• Difficulty
developing
business
case
and
gaining
internal
buy-­‐in
to
financial
and
other
benefits
• Unsure
that
claimed
benefits
will
be
achieved
• Difficulty
in
selecBng
the
correct
equipment
or
finding
the
best
suppliers
11

12. Our
services
help
businesses
overcome
them
Lack
of
funds
Lack
of
awareness
Lack
of
confidence
Advice
-­‐
Energy
saving
experBse
Energy
efficiency
finance
schemes
Common
barriers
How
we
help
ImplementaBon
Support
Energy
efficiency
made
easy
12

13. Agenda
› IntroducBon
to
the
Carbon
Trust
› The
energy
efficiency
opportunity
› Interest-­‐free
Energy
Efficiency
Loan
Scheme
› Energy
Efficiency
Financing
Scheme

14. Carbon
Trust
Interest-­‐Free
Loans
Key
features
of
the
interest-­‐free
Loan
Scheme:
" Your
business
can
borrow
between
£3,000
and
£400,000
interest
free
to
buy
energy-­‐saving
equipment
" The
savings
you
make
on
energy
bills
should
offset
your
loan
repayments,
meaning
the
energy
efficient
equipment
will
pay
for
itself
" Our
loans
are
government-­‐funded
and
unsecured
" It
is
easy
to
apply
for
our
loans
and
we
don't
charge
any
arrangement
fees
" You
will
receive
a
condi)onal
offer
within
24
hours
of
your
applicaBon
being
processed
and
you
can
track
its
progress
online,
and
" You
have
up
to
four
years
to
repay
your
loan
Thanks
to
support
from
Invest
Northern
Ireland,
we
are
able
to
help
businesses
invest
in
low
carbon
equipment
and
create
successful
energy-­‐saving
and
renewable
energy
projects
through
the
provision
of
interest-­‐free
loans.

15. 600
Loans
to
local
businesses
>£24m
Capital
loaned
for
energy
projects
Interest-­‐free
Loans
in
Northern
Ireland
£50m
Value
of
implemented
projects
>£100m
Reduc)on
in
life)me
energy
costs
Currently
85%
of
projects
are
undertaken
with
local
suppliers

16. 38%
18%
10%
10%
8%
6%
4%
6%
LighBng
HVAC
Compressed
air
Process
RefrigeraBon
RE
&
CHP
DHW
Other
Interest-­‐free
Loans
in
Northern
Ireland
by
technology

17. Eligibility
Criteria
All
businesses
&
voluntary
sector
organisaBons
registered
in
Northern
Ireland
are
eligible
to
apply..
Providing
they
have:
" A
trading
history
of
at
least
12
months
" An
acceptable
credit
raBng
" No
involvement
in
primary
agriculture,
fisheries
and
transport

18. Qualifying
Projects
" Qualify
if
savings
payback
the
loan
within
5
years
– InstallaBon
costs
can
be
included
– Based
on
energy
savings
only
OR
• If
payback
>5
years
the
loan
is
capped
at
5
Bmes
the
annual
saving
AND
• Carbon
threshold:
1.5
t/CO2
per
£1,000
loan

19. What
equipment
can
be
purchased
with
an
interest-­‐free
loan?
" Any
equipment
that
saves
or
generates
an
onsite*
energy
saving
" Examples
range
from
insulaBon
through
to
CHP
or
renewables
" Projects
may
be
co-­‐joined
(say,
heaBng
and
lighBng
projects)
" Equipment
does
NOT
need
to
be
listed
on
the
Energy
Technology
List
of
the
ECA
scheme
* Off-site renewable energy projects may qualify, subject to conditions

20. Repayment
period
To
calculate
the
repayment
period,
simply
divide
the
loan
amount
by
the
annual
energy
saving
e.g.
£100,000
loan
/
saving
£30,000
pa
=
3.33
year
simple
payback
for
which
we
would
offer
a
4
year
loan
The
loan
is
designed
to
pay
for
itself

21. Vital
Sta)s)cs
" Interest
Free
" Unsecured
0%
interest
No
Annual
Fee
No Set
up Fees
No Director
Guarantees
No Charge
over assets

22. Vital
Sta)s)cs
Borrow
£100,000
Pay
Back
£100,000

23. How
easy
is
it
to
apply?
" An
on-­‐line
applicaBon
process
– 30
minutes
maximum
(with
all
the
data
to
hand)
– Customer
or
some
Suppliers
can
drive
the
applicaBon
– SupporBng
documents
uploaded
– CondiBonal
offer
to
the
customer
once
the
applicaBon
submiOed

24. Payments
£
30%
Deposit
££
60%
On
Delivery
£££
10%
for
Commissioning
All
paid
directly
to
the
customer

25. Applica)on
Process
Overview
Pre-­‐Customer
Submission
Submission
Process
ApplicaBon
UncondiBonal
Loan
Offer
Draw
Down
the
Loan
" It
takes
us
an
average
of
5
business
days
to
process
applicaBons:
– Conduct
an
energy
assessment
on
the
recommended
project
– Assess
the
eligibility
of
the
business
and
the
project
– Recommend
the
project
for
a
loan
" Delays
may
occur
for
incomplete
applicaBons.
Fortunately,
this
can
easily
be
miBgated

26. Ligh)ng
upgrade
in
manufacturing
company
Project
details:
• Old
technology:
Switch-­‐start
T12
luminaires
• New
technology:
High
frequency
T5
tri-­‐phosphor
• Monthly
0%
finance
£2.5k
fixed;
Monthly
savings
£3.4k+;
Energy
price
inflaBon
4%
pa

27. CHP
in
a
hotel
Project details:
• Monthly 0% finance £3.4k fixed; Monthly savings £3.7k+; Energy price inflation 4% pa

28. Biomass
in
a
manufacturing
company
Project details:
• Monthly 0% finance £4.4k fixed; Monthly savings £4.5k+; Energy price inflation 4% pa
£1,631
£3,841
£59,219
£61,587
£64,051
£66,613
£69,277
£72,049
£74,930
£77,928
£0
£10,000
£20,000
£30,000
£40,000
£50,000
£60,000
£70,000
£80,000
£90,000
1 2 3 4 5 6 7 8 9 10Year
Net
annual
benefit
during
finance
term
Subsequent
annual
benefit
Projected
Year
1
–
10
Cash
Flow
(negaBve
=
expenditure,
posiBve
=
income)

29. More
informa)on
on
Loans
...
" Website
– hOp://www.carbontrust.com/client-­‐services/
northern-­‐ireland
" Carbon
Trust
Loans
– Tel:
028
9073
4394
– Email:
loans@carbontrust.co.uk
– Janine
Cobain,
Belfast
Office

30. Agenda
› IntroducBon
to
the
Carbon
Trust
› The
energy
efficiency
opportunity
› Interest-­‐free
Energy
Efficiency
Loan
Scheme
› Energy
Efficiency
Financing
Scheme

31. Overview of the
Energy Efficiency Financing Scheme
Easier  Integrated  Flexible
" Convenient
and
fast
-­‐
arranged
through
your
chosen
recognised
Energy
Efficiency
Financing
supplier
" Affordable
-­‐
designed
so
that
financing
payments
are
offset
against
the
anBcipated
energy
savings
" Flexible
-­‐
payments
can
be
tailored
for
individual
circumstances
" Easier
budge)ng
-­‐
payments
are
fixed,
not
subject
to
fluctuaBons
in
interest
rates
" Maintains
exisBng
credit
lines
" Tax
efficient
-­‐
payments
may
be
offset
against
tax,
depending
on
individual
circumstances
" Future
proofed
-­‐
allows
the
flexibility
to
change
with
your
business
requirements
" Conserves
working
capital
-­‐
the
flexibility
to
conserve
your
exisBng
working
capital
for
other
business
projects

32. Who can apply for Energy Efficient
Financing?
FOR ALL CUSTOMERS
 Customer’s full trading style
 Customer’s address and
postcode
 The date the business was
established
 Details of energy efficient
equipment to be financed.
FOR LIMITED COMPANIES & PLCs
 Company registration number
 If <3 years trading, details of directors
and their home addresses
FOR SOLE TRADERS & PARTNERSHIPS
 Full name(s) of sole trader/all partners
 3 years trading, evidence of date started, eg
VAT number
 For applications >£5,000 up to date accounts
Trading InformationCustomer Details
All
types
of
organisaBons
From
sole
traders
and
partnerships
through
to
large
corporaBons
and
government
bodies

33. The Application Process
Payment
is
made
to
the
supplier
Equipment
can
be
installed
The
agreement
is
formalised
Energy
saving
assessment
is
completed
A
credit
check
will
be
completed
Complete
the
Finance
Proposal
Form

34. Ligh)ng
upgrade
in
manufacturing
company
Project
details:
• Old
technology:
400/450W
high-­‐bay
metal
halide
luminaires
• New
technology:
160/216/320W
high
frequency
T5
floodlights
• Monthly
finance
£1.3k
fixed;
Monthly
savings
£2k+;
Energy
price
inflaBon
4%
pa

35. Waste-­‐to-­‐Energy
project
with
a
minerals
company
Project details:
• Installation of Organic Rankin Cycle (ORC) waste heat powered generators
• Monthly finance £22k fixed; Monthly savings £20k+; Energy price inflation 4% pa

36. More
informa)on
on
Energy
Efficiency
Financing
Scheme…
" Website
– hOp://finance.siemens.com/financialservices/uk/
products_soluBons/equipment-­‐finance-­‐leasing/energy-­‐
efficiency-­‐financing/Pages/index.aspx
" Siemens
Financial
Services
– Tel:
01753
434476
– Email:
eef.sfs.gb@siemens.com

37. Carbon Trust
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