carbon trust-financing-energy-saving-projects-geoff-smyth
TRANSCRIPT
Agenda
› Introduc)on to the Carbon Trust
› The energy efficiency opportunity
› Interest-‐free Energy Efficiency Loan Scheme
› Energy Efficiency Financing Scheme
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
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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:
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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:
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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:
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Agenda
› IntroducBon to the Carbon Trust
› The energy efficiency opportunity
› Interest-‐free Energy Efficiency Loan Scheme
› Energy Efficiency Financing Scheme
The case for invesBng in energy efficiency is compelling
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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
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
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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
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• 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
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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
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Agenda
› IntroducBon to the Carbon Trust
› The energy efficiency opportunity
› Interest-‐free Energy Efficiency Loan Scheme
› Energy Efficiency Financing Scheme
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.
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
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
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
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
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
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
Vital Sta)s)cs
" Interest Free
" Unsecured
0% interest
No Annual
Fee
No Set up Fees
No Director Guarantees
No Charge over assets
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
Payments
£ 30% Deposit
££ 60% On Delivery
£££ 10% for Commissioning
All paid directly to the customer
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
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
CHP in a hotel
Project details: • Monthly 0% finance £3.4k fixed; Monthly savings £3.7k+; Energy price inflation 4% pa
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 10 Year
Net annual benefit during finance term
Subsequent annual benefit
Projected Year 1 – 10 Ca
sh Flow
(negaB
ve = expen
diture, posiBve = income)
More informa)on on Loans ...
" Website
– hOp://www.carbontrust.com/client-‐services/northern-‐ireland
" Carbon Trust Loans – Tel: 028 9073 4394 – Email: [email protected] – Janine Cobain, Belfast Office
Agenda
› IntroducBon to the Carbon Trust
› The energy efficiency opportunity
› Interest-‐free Energy Efficiency Loan Scheme
› Energy Efficiency Financing Scheme
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
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 Information Customer Details
All types of organisaBons
From sole traders and partnerships through to large corporaBons and government bodies
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
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
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
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: [email protected]
Carbon Trust
The contents of this presentation are the copyright of the Carbon Trust and may not be copied or republished without the prior written consent of the Carbon Trust. The trade marks, service marks and logo used in this presentation are the
property of the Carbon Trust and no licence or right is granted to use any such marks or logo.
For further advice and to access the services from the Carbon Trust, visit our website at:
www.carbontrust.com