Making Business Sense of Climate Change

1
Making Business Senseof Climate Change
You may be eligible for an interest free
energy-efficiency loan from The Carbon Trust
towards the cost of your Energy Saving
Solutions!Contact Excel Compressors Tel
0161 366 1886 Fax [phone]
2
Energy-Efficiency Loans from the Carbon Trust
3
The Carbon Trust

• An independent company funded by Government
• Works with UK business public sector to cut
  .carbon dioxide emissions

• Programmes include
• Energy surveys support
• Commercial development of low-carbon technology
• Financial products

4
The Carbon Trust - Financial products

• Energy Technology List (ECA Scheme)
• PRODUCT focussed
• results in a tax advantage
• Energy-Efficiency Loans
• Energy PROJECT based
• results in the end-user receiving interest free
  loan
• not limited to ETL products

5
Energy-Efficiency Loans in context...

• Five interest rate increases during past 12
  months !!
• Energy prices increased by 30-40 since Oct.
  2003 !!

6
Energy-Efficiency Loans

• To encourage end-user investment in energy
• efficiency projects.
• Key features
• 5,000 min to 100,000 max
• 0 Interest
• No other fees
• Unsecured
• Repayment period matches project payback

7
Whos eligible?

• Small and Medium Enterprises (SMEs) in England
  Wales N Ireland
• (Over 2 Million in UK)
• Providing they have
• A trading history of at least 12 months
• An acceptable credit rating
• No involvement in agriculture fisheries,
  transport and export related activities

8
What is an SME?(Over 2 Million in UK)

• An enterprise with
• Fewer than 250 employees
• Less than 40m (25m) turnover or 27m (17m)
  assets
• Not more than 25 of the capital or voting rights
  owned by a non-SME

9
Energy saving projects

• Qualify if savings payback the loan within 5
  years
• Installation costs can be included
• Based on energy savings only
• If payback gt5 years the loan is capped at 5 times
  the annual saving
• Carbon threshold 0.39 tonnes carbon per 1,000
  loan

10
Energy-Efficiency Loans - example

• Project
• Cost 120,000
• Estimated saving 30,000/annum
• Therefore
• Project payback 4 years
• Potential Loan 100,000 (subject to credit check)
• Loan repayment period 48 months

11
Energy-Efficiency Loans - example

• Project
• Cost 50,000
• Estimated saving 9,000/annum
• Therefore
• Project payback 5.5 years
• Loan capped at 59,000 45,000
• Loan repayment period 48 months
• Loan repayment 11,250/annum

12
Energy-Efficiency Loans - example

• Project
• Cost 40,000
• Estimated saving 15,000/annum
• Therefore
• Project payback 2.7 years
• Potential Loan 40,000
• Loan repayment period 36 months
• Loan repayment 13,350/annum

13
Energy-Efficiency Loans - example

• Project
• Cost 10,000
• Estimated saving 6,000/annum
• Therefore
• Project payback 1.6 years
• Potential Loan 10,000
• Loan repayment period 24 months

14
The benefits to you

• Makes it easier for your to invest in energy
  efficiency projects
• overcomes capital cost barrier
• Creates an environmental benefit
• energy savings means lower carbon dioxide
  emissions

15
The loans procedure

• Customer Eligibility check list
• Straightforward application form
• Energy saving assessment quotation from you
• Customer provides Accounts info for credit check
• Each application is vetted - energy carbon
  saving
• Some projects will be audited post completion

Loan offers can be made in 2 weeks from receipt
of a complete application