Energy efficient interest free loans

Energy Efficient Interest Free Loans

To assist in Credit Crunch times, The Carbon Trust have launched a range of interest free loans for small businesses to help them upgrade their premises to reduce their carbon emissions and utility bills.

Which Businesses Are Eligible For Carbon Trust Loans

Loans are unsecured and are available for Micro, Small and Medium sized businesses which have been trading for 12 months or more, subject to eligibility. Loans are offered from £5000 to £200,000 over a period of up to 4 years and are available to companies in England, Scotland and Wales. For businesses in Northern Ireland, again subject to eligibility, loans are available up to £400,000.00.

As previously stated the loans are energy efficient loans and so can only be taken to upgrade your work place or to replace equipment enabling you to increase energy efficiency. Repayments for the loans are calculated on how much savings you will be making as a result of the upgrades which you put in place. So if it is calculated that you will be saving in the region of £5,000.00 per year and you take a loan of £20,000.00 to carry out the updates then you will have a term of 4 years (the maximum term which can be provided). However, if the actual savings when put into practise are not as much as previously calculated then you do still need to pay the full cost of the loan, though if you have used a professional supplier then the estimated savings and actual savings should correspond.

Energy Workshops

If a loan is not really the path you want to take but you would like to learn more regarding making your business more energy efficient then you could choose to attend an Energy Workshop, all of which are free. There are a number of workshops across the country so look to see if there is one in your area where you or a company representative can attend.

Switching Your Energy Provider

Another thought to keep in mind is whether you are actually with the most cost effective energy supplier for your business. We often do price comparisons or switch providers for our home energy suppliers, but have you ever considered doing this in your workplace? If not then the true savings of a Carbon Trust loan may not actually be reflected and this could effect your decision as to which upgrades, if any, you would like to make.

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Updated on 3rd February, 2009

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