The Carbon Trust Loan Scheme
The Carbon Trust is a not-for-profit company with the mission to accelerate the move to a low carbon economy. They provide specialist support to help business and the public sector cut carbon emissions, save energy and commercialise low carbon technologies. By stimulating low carbon action we contribute to key UK goals of lower carbon emissions, the development of low carbon businesses, increased energy security and associated jobs.
Until June 2009, Carbon Trust loans were only available to small and medium sized enterprises, helping them to contribute to the UK’s carbon reduction strategy by providing interest-free finance for energy efficiency projects. This has now changed to let all companies, large and small, participate in the effort against climate change, provided the annual electricity spend is under £500,000. Should your annual electricity exceed this threshold, then only if your company is an SME are you eligible.
The loan itself, worth between £5,000 and £200,000, is unsecured, interest-free, repayable over up to four years and has no application fee. With power Perfector’s average ROI of around 50%, the two year payback falls well within the loan’s limits, allowing you to take full advantage of the support available.
Carbon Trust Loans
It may not be something that you have heard of but it’s something as a business owner that you may be interested in, as it could help reduce your carbon foot print and help “save the planet”. Running a business we are always looking at ways to make the company more efficient in the processes that we perform as well as the overheads.
We have a big overhead in the company in the ISP and Hosting side of the company and we use a great deal of electricity powering the racks of servers and air conditioning in the server room. I remember when we first moved into our existing building a few years ago and in the first month the electricity company has under estimated our monthly bill by 10,000 units.
The Carbon Trust is now offering Interest Free 0% loans for businesses to implement schemes and projects that will make them more energy efficient. Their mission statement is to:
“…accelerate the move to a low carbon economy now and develop commercial low carbon technologies for the future.”
Chillaire have been looking into what is being offered and can outline what we have found out so far. The application process for the loans is quite in depth, the loans that are being offered are between £3000 and £100,000, we have found in some cases this could be up to £400,000 and Interest Free, repayable over 4 years. The loan amount is based on your projected CO2 savings which is assessed by the Carbon Trust. To be eligible you need to be a UK company, with less than 250 employees, in the private sector, trading for more than 12 months and with a turnover of less than £43m. The aim of the loan would be to allow for the business to be modernised with new equipment or to get better heating, lighting or insulation. The theory behind the loan is that with the savings that will be made from being more energy efficient, it will effectively pay itself back.
Sounds like a good move by the Carbon Trust to give an easy way for companies, especially those that use a whole load more energy than we do to take the next step to reducing their carbon consumption.
Borrow £3,000 to £100,000 at 0% interest
0% business loans of £3,000 – £100,000 are available from the Carbon Trust to help organisations finance and invest in energy saving projects.
Why a 0% business loan makes business sense:
- You can borrow between £3,000 and £100,000 interest free
- Anticipated energy savings offset the loan repayments. So new equipment should pay for itself and you should continue to make savings year on year
- The loans are government funded and unsecured
- A straightforward and fast application process with no arrangement fees
- You’ll receive a conditional offer within 24 hours of your application being processed
- Loans can be repaid over a period of up to 4 years
- You can track the progress of your application online
For more information, try out the application process yourself here: