Funding boost will stimulate low-energy projects

Keith Wyatt from Somar International has predicted a swell of interest in 'green' technology following the Carbon Trust's move to offer UK industry more 'free money'.

In an attempt to help businesses beat the recession by cutting energy costs, the Carbon Trust has doubled the maximum amount of money available through its interest-free loan scheme from GBP200,000 to GBP400,000 - the second increase in nine months.

Funding can be used to buy products with proven energy efficiency credentials - and Wyatt believes swelling the loan kitty will act as a catalyst for companies to prioritise eco projects.

He said: 'Until now, the loan cap has been restrictive, especially for larger SMEs.

'Some are looking at large-scale initiatives costing more than GBP200,000, while others want to introduce several low-energy projects but, due to funding problems, have had to prioritise certain ones and hold fire on others.

'Raising the loan ceiling will stimulate a wider variety of projects, not just those that deliver the quickest payback, and additional projects within companies that had maxed out their Carbon Trust funding.

Previously, in England and Scotland, the zero per cent APR loans were only available to SMEs - but any company spending less than GBP500,000 is now eligible.

At the opposite end of the scale, the minimum loan has been lowered from GBP5,000 to GBP3,000.

In addition, the Carbon Trust is now offering GBP1,000 of loan per 1.5 tonnes of carbon saved by eco-friendly technologies, compared with a less generous 2 tonnes before.

Wyatt added: 'This shouldn't be underestimated.

'It means efficiency schemes will qualify for more funding, while a greater number will be eligible for 100 per cent loan funding.

'And, of course, as companies cut their energy bills it frees up significant sums of money for investment elsewhere and helps stimulate the economy.

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