The Salix Interest Free Loan Scheme

Salix is an independent, publicly funded company set up to accelerate public sector investment in energy efficiency technologies through invest to save schemes.

The Scheme will provide interest free loans to pay for the installation of a wide range of energy efficiency measures across the public sector – providing 100% support in making further progress towards reducing their energy bills and carbon emissions.

  • All public sector organisations in England are eligible to apply.
  • The minimum amount available is £5,000 per application with no upper limit providing all projects can be completed within 9 months of agreed application.
  • The loan will be 100% interest free.
  • Loans are available for energy saving LED Lighting projects.
  • The repayments should be covered from the energy savings achieved by the projects and organisations can keep all the savings generated once the loan is repaid.

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About Salix

Salix enables public sector organisations across England, Scotland, Wales and Northern Ireland to take a lead in tackling climate change by increasing their energy efficiency. Salix provides 100% interest-free capital for the public sector to reduce their energy costs by enabling the installation of modern, energy efficient technologies and replacing dated, inefficient technologies.

Energy efficient technology cuts carbon emissions and reduces energy bills. However, upfront capital is a common barrier for public sector organisations seeking solutions that cut their energy consumption. Salix, a not-for-profit organisation funded by the Department for Energy and Climate Change, the Department for Education, the Welsh Government, the Scottish Government and Higher Education Funding Council for England, removes this barrier by making this capital accessible to the public sector.

To date, Salix has funded over 12,000 projects with 851 public sector bodies, valued at £302.8 million. This has saved the public sector £82 million annually and £1.13 billion over the projects’ lifetime. In the future, this will reduce public sector carbon dioxide emissions by 466,190 tonnes annually and almost 6.2 million tonnes over the lifetime of the projects.

There are two types of Salix funding programmes available. The first is the Salix Energy Efficient Loans Scheme – as an example: a school borrows £10,000 to put in new lighting and a new boiler which will save the school £2,000 per annum from reduced gas and electricity usage. For the first five years these savings are used to pay back the interest-free loan. Once the loan is repaid, the continued savings enable the school to use the capital for other budgets, such as the purchase of equipment.

The second programme available is the Recycling Fund, which is a ring-fenced fund managed by the public sector organisation, with money provided by the organisation and match funded by Salix. The project loan is repaid into the fund from the financial savings delivered by the projects – this allows the fund to be continually used for energy efficiency projects, hence the term ‘Recycling Fund’. At the same time the organisation continues to benefit from the savings that accumulate once the project has been fully repaid.

Salix also facilitates knowledge sharing through quarterly regional meetings, technical workshops and project case studies. There is an extensive knowledge and enthusiasm for energy efficiency within the public sector, and enabling the sharing of this knowledge between organisations helps support our clients in delivering long term, cost effective savings.

Over 120 technology types are supported by the funding programmes, some of which include building energy management systems, cavity wall insulation, combined heat and power systems, evaporative cooling, heat recovery systems, LED lighting, lighting controls, loft insulation, pipework insulation, server virtualisation, T5 lighting and Variable speed drives.

Salix funding includes all public sector organisations and across their whole estates, including schools, higher and further educational institutions, emergency services, hospitals, leisure centres, local authorities, the NHS. There has been a focus to commit more resources to increasing energy efficiency and driving down energy costs, which Salix aim to address and assist the public sector in doing.  Contact us today to discuss Salix funding for your school.

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