Hospitals, leisure centres, local authorities and other public sector organisations might be eligible for new energy efficiency loans being offered by the Government in partnership with Salix Finance and the Carbon Trust.

A total of £51.5 million in interest-free loans are being made available to help public sector organisations take advantage of energy efficiency technology.

“We estimate this fund could help public sector bodies save around £14 million per year in fuel bills,” said Joan Ruddock, Minister for Energy and Climate Change. “Following the announcement of our ambitious carbon budgets, all public sector organisations should lead by example by pioneering ways to reduce carbon emissions. I hope that schools, hospitals and fire stations will look into projects they can undertake, and use this funding opportunity.”

Announced by the Chancellor as part of the new Budget, the new loans are an addition to £30 million announced last year for the 2008-2012 scheme and will be available through Salix Finance. Loans will be available for some 80 different energy efficiency technologies, including building insulation, boiler and lighting upgrades, improved cooling systems and IT energy efficiency improvements.

Officials say this support will play an important part in the build-up to the Carbon Reduction Commitment (CRC), which begins in April 2010. The CRC is a mandatory scheme that targets carbon dioxide emissions from large public and private sector organisations, which together use more than 6,000 megawatt-hours of electricity per year. It will provide incentives for these organisations to record and reduce their energy use and improve energy efficiency, saving an estimated 4 million tonnes of CO2 a year by 2020.

“Many organisations have already taken bold action on climate change and we hope their example inspires many more in the public sector to follow suit,” said Tom Delay, CEO of the Carbon Trust. “Thanks to new funding from the Government they now have the financial means to do so.”

“Salix is currently working with 128 public sector bodies who are already saving over £3.5 million a year in energy spend,” added Alastair Keir, CEO of Salix Finance. “This new loan funding will enable us to significantly increase the support we can provide to public sector bodies to reduce their energy spend and their CO2 emissions. It will not only enable other public sector bodies to benefit but also allow our current clients to undertake larger projects and achieve even greater savings.”

Tags: energy efficiency