Enigin Update - Help to Fund Energy Efficiency Improvements for UK Firms
NEW analysis from the Energy Efficiency Financing Scheme reveals that 400,000 businesses throughout England would struggle to raise standard bank loans for energy efficient investments but help is at hand.
The Energy Efficiency Financing Scheme is a financing scheme for green equipment for organisations of all sizes, delivered by the Carbon Trust and its partner Siemens Financial Services - which we reported about on these pages last year, and could be a help to many clients of Enigin Distributors in the UK wishing to install and utilise Enigin plc's energy efficiency equipment and solutions.
The analysis reveals the number of companies in each major town and city that are likely to face difficulties raising bank loans for green investments which can significantly reduce businesses' energy costs and carbon emissions. Evidence from the Bank of England predicts that tight credit conditions, especially for smaller businesses, are likely to persist in 2012.
In England, around 400,000 companies (38 percent of employers) are expected to find it difficult to raise bank loans to invest in energy efficiency that would save energy costs and could also increase productivity.
Myles McCarthy, managing director at Carbon Trust Implementation Services, commented: "Our analysis shows that there is a huge market potential for energy-efficient equipment investment over the next three years, amounting to almost £9bn across the country (e.g. £768m in London, £798m in North East, £580m in South West). The large number of inquiries in the Energy Efficiency Financing Scheme in the first few months confirms the significant appetite from business for investment in this area."
"In the current credit squeeze, however, a major problem for firms has been access to affordable finance to enable business to make those green investments. That is why we have put in place a major new financing facility that makes finance more accessible and affordable for companies. The new facility – with finance provided by Siemens - matches monthly payments to real monthly energy cost savings, which means that in many cases firms are cash neutral or cash positive from day one. These investments allow organisations to gain access to new equipment that is more productive, reduces waste and lowers energy costs.
Drawing on Siemens' financing expertise, the current analysis identifies businesses who would struggle to raise an affordable bank loan because of their credit profile. To help these companies raise finance for energy-efficient investments, the Energy Efficiency Financing Scheme covers such technologies as low energy lighting, energy-efficient motors, energy efficient air conditioning or biomass heating.
Any business is able to apply for new green growth finance from the scheme, which is designed to match monthly payments with the equivalent savings from lower energy consumption. The Carbon Trust applies its experience and expertise in carbon saving from energy-efficient technologies to provide a reliable and trusted assessment of the carbon, energy and cost savings of any application for finance. Siemens Financial Services Ltd. in the UK (SFS UK) provides the financial backing and manages the provision of funding.
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