Education sector urged to utilise interest-free energy saving loan

Colleges and other public sector education institutions in England are being offered interest-free loans for energy saving initiatives to save costs.

The Government announced £51.5 million of new loan funding in the latest Budget, and applications are now being invited for the first call by 17 July 2009.

Salix Finance, which aims to boost public sector investment in energy efficiency technologies, will offer the new funding in partnership with energy efficiency champion Carbon Trust, through the Department of Energy and Climate Change.

Alastair Keir, chief executive of Salix Finance, told FE News: "This new funding of £51.5m for the public sector will come as welcome news to colleges in England looking to maximise their budgets at a time when they are stretched.

"Like all public sector bodies further education institutions have a vital role to play in contributing to energy efficiency and these new interest free loans will help them implement energy saving projects that will deliver long term cost savings as well as reducing their carbon footprint."

The loans, which will be made available for 100 per cent of the project’s cost provided it meets agreed green criteria, are expected to save roughly £18 million and 100,000 tonnes of CO2 per year. They will be repaid over a four year period in eight equal instalments, with the first due March 2011.

Funding for college building projects has been especially especially hard to come by recently, and the move has already attracted a high level of interest from across the whole of the public sector. It will complement Salix Finance’s existing match funding programme, which offers some £90 million of funding operating with 128 public sector clients in the UK

Further information on the application process is available on the Salix Finance website.

(Pictured: Alastair Keir, chief executive of Salix Finance)