The UK Green Investment Bank (GIB) and its fund manager Sustainable Development Capital LLP (SDCL) have announced £1m of funding to help SMEs to make investments in energy efficiency. This is matched by £1m from SI Capital R&S1.
The £2m will be invested into ReEnergise Finance Ltd’s Smart Energy Finance vehicle, which has been set up to provide loans, primarily to SMEs, for energy efficiency projects.
Initial loans are in progress for biomass and lighting projects for a variety of organisations including a garden centre and a training provider.
Shaun Kingsbury, chief executive, UK Green Investment Bank, said: The investment announced today will help small businesses across the country to save money. Energy is a significant cost for any company, and putting in place energy efficiency measures will have a real impact on these organisations’ bottom line.”
Michael Fallon, Business and Energy Minister – “This is a welcome investment that helps small businesses and shows that going green isn’t just about building offshore wind farms or new energy plants. Any good business should want to become more efficient and saving on energy costs makes good business sense”
The investment is expected to fund up to 20 projects and could eventually build a portfolio of up to £10m of assets. Typical projects will be from £25,000 to £400,000 and could include biomass boilers, low energy lighting and combined heat and power.
The funding model means businesses will start saving money from day one, with an immediate reduction in their energy bills of around 20 percent.
Business and Energy Minister Michael Fallon said: “This is a welcome investment that helps small businesses and shows that going green isn’t just about building offshore wind farms or new energy plants. Any good business should want to become more efficient and saving on energy costs makes good business sense.”
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