finance to cut costs and grow your business In association with - - PowerPoint PPT Presentation

k

Breakfast briefing

How to access available finance to cut costs and grow your business

In association with Scotland’s 2020 Climate Group

k

Who we are

Free, specialist advice On-site support Access to suppliers Access finance A programme from Zero Waste Scotland Funded by Scottish Government & ERDF Operational since April 2013

We are here to help you cut your energy, water and raw material costs

k

Helping you overcome

the barriers to resource efficiency

k

Agenda

08:55 Welcome 09:00 David Thomson, Food and Drink Federation Scotland 09:15 The Business Benefits of Being Green 09:30 Case study: Simon Jones, Edinburgh Zoo 09:45 Overview of loans and grants 10:00 Resource Efficient Scotland interest Free Loan 10:15 Finish/Networking

k

Live Tweeting

Follow us @resourcescot

David Thomson, CEO

Food and Drink Federation Scotland

beyond- green.com

Resource Efficiency – Stronger Business

Business Breakfast Briefing

Paul Adderley

Core elements of business strategy

Stress tests for – Energy price volatility – Supply of raw materials – Tough Waste legislation – Cost of finance Opportunities for – Add value to customers – New services – Access to finance Build Reputation Profitability & certainty Managing Risks

Focus of Resource Efficiency

=

Unit cost

X

Quantity (volume)

Cost to Business

Process Driven Savings Benefits locked in (e.g efficient boiler) Less ForX Exposure Harder Investment Decisions

Business Benefits

Resource Efficiency in the P&L Resource Efficiency Benefits

Sales

Competitive Advantage, Stronger Reputation, new business, marketing benefits

Cost of Sales

Less material waste, & energy use per product.

Gross Profit

Increased margins, reduced volatility , higher productivity

Operational Costs

Lower energy use from efficiency, renewable

Interest Paid

Low interest loans / grant funding

Tax Charge

Enhance Capital Allowances for Energy Saving Technology

Net Profit

Greater Returns to Business owners

building the case

Indicative Payback Periods

• Monitoring Use < 1yr
• Efficiency 2-4 yrs
• Production Process 2-

5yrs

• Renewables 5-8 yrs.

3 Renewable Energy 2 Process & plant efficiency 1 Avoid Costs & Emissions

DATA DRIVEN DECISIONS RES IMPARTIAL SUPPORT COLLABORAT E WITH SUPPLIERS

Case Study Scottish Bakery

• Data Driven

Decisions

• Upgrade

Compressors - £7k (30% saving)

• LED Lighting-

£6k annual saving

• Material Savings

7.5K

• Funded by SME

Loan

Case Study Institute of Occupational Medicine

Half Hourly Electricity Data

Case Study Institute of Occupational Medicine

• 70kW solar PV system
• Financial benefit: £6.5k pa
• 95% on site use
• Performance as predicted
• Payback 6 years
• Annual Carbon Saving 28tCO2e

14

Views from FD’s

“Over the last three years we have utilised the technical support provide by Resource Efficient Scotland to help us independently access resource efficiency savings across our businesses” J.D. Appleton, Finance Director, Paterson Arran Limited “The high quality evidence from the technical assessment helped IOM make an informed decision… We are now benefiting from lower electricity costs of around £9,000 a year.” Chris Owens, Director of Central Services & Finance, Institute of Occupational Medicine.

Key messages

• Root cause of resource demand
• Data driven decisions
• Balanced investment with realistic

returns

• Utilise free business support in

Scotland

» www.resourceefficientscotland.com » Helpline 0808 808 2268

pauladderley@beyond-green.com DD 0131 472 4708/ 07917372573

thank you, any questions ?

k

Edinburgh Zoo

k

Overview Loans and grants

k

Barriers to implementing resource efficiency projects

k

Types of finance

• Government supported finance

– Grants – Loans – Tax incentives – Fiscal incentives

• Commercial finance

– Asset finance – Debtor finance

k

Zero Waste Scotland

Waste Implementation Fund Circular Economy Investment Fund Interest Free Loan

k

Government-supported loan schemes

Transport Scotland Low Carbon Transport Loan

k

Regional and national loan schemes

West of Scotland Loan Fund East of Scotland Investment Fund Highland Opportunity Fund Scottish Loan Fund

k

Other Government-supported schemes

Enhanced Capital Allowances Low Carbon Skills Fund Green Business Fund

k

Resource Efficient Scotland Interest Free Loan

k

Install a new biomass boiler to provide low-cost heat Upgrade to energy efficient lighting to lower energy bills Upgrade to energy efficient heating systems to lower heating bills Insulate premises to reduce heating costs Install solar photovoltaic to generate cheap, green electricity from sunlight Use voltage

• ptimisation

to reduce energy costs ...and many more resource efficiency measures

An opportunity for you to…

k

Replaced the existing LPG system with a biomass boiler, giving savings of £23,806 per year and reducing carbon emissions by 39.5 tonnes CO2. Installation of Solar PV. “…made the difference between us wanting to put in a new biomass system and us actually having it installed.” Kenneth McKenzie, Owner

Insert suitable image here

Highland Farm Cottages

k

Upgraded the lighting in its warehouses to high efficiency LEDs - cutting more than £16,000 a year from its energy bill. “Resource Efficient Scotland supported us at every step of the way in upgrading our lighting system, from planning and funding the project through to installation. With this help, a relatively small change to our building is translating to a big saving in our energy usage.” Duncan Elder , Houston Bottling & Co-pack

Insert suitable image here

Houston Bottling & Co-pack

k

Installation of high-efficiency light emitting diodes (LEDs) and controls in

• ffices, workshop and factory.

Saving almost £3,000 a year. “Resource Efficient Scotland made it easy to justify upgrading our lighting system to LED lamps, which has resulted in a significant saving

• n our energy bill.”

Robert Mcartney, Commercial Director Pentland Precision Engineering

Pentland Precision Engineering

k

Upgrades to lighting and refrigeration, resulting in a reduction of annual electricity savings by 30%, worth almost £1,800 a year. I am absolutely delighted with the new double- glazed refrigeration cabinets and the LED lighting…The support from Resource Efficient Scotland helped me to identify and fund the changes to my shop and I am really happy with the results.” Aleem Farooqi, Owner , Goldenacre Mini Market

Goldenacre Mini Market

Resource Efficient Scotland SME loan

Neil Leckie Energy Saving Trust

Introduction

• Funded by the Scottish Government
• The loan has been operating since 2007
• Some changes but aim of the programme has stayed the same - to

support businesses in saving energy, carbon and money through improved energy, material and water efficiency

• Resource Efficient Scotland offer impartial guidance and technical

support to businesses

• This includes providing a free energy audit detailing the key actions to

unlock identified energy, water and raw material cost savings. The report can then be used to support a loan application

• Energy Saving Trust are responsible for the loan administration –

managing the budget, assessing applications, offering funding, making payments and collecting repayments

33

Eligibility criteria

Below are some of the key eligibility criteria to be aware of. Your business must:

• Be based in Scotland
• Operate as a sole trader, partnership, limited company, charity or not

for profit

• Meet the European Commission definition of an SME (fewer than 250

employees, turnover not exceeding €50 million and/or a balance sheet not exceeding €43 million)

• Not be in breach of European Commission De Minimis State aid

funding rules

• Have been trading for at least 12 months
• Pass relevant credit and affordability checks

34

Loan Information

35

• You can apply for up to £100,000
• A wide range of measures are available (examples on next

slide)

• Work being funded must have a clear carbon and financial

saving

• Can only fund measures that are recommended on the

qualifying report provided by Resource Efficient Scotland

• Decision or update within 10 working days of EST receiving

application

Available measures

Funding is available for a wide variety of works. Some popular examples are below:

A full list can be found on the Resource Efficient Scotland website but we are flexible

36

Energy Efficiency Renewable Waste/Water/Other

Boiler (Gas, LPG or oil) Biomass boiler Commercial refrigeration and freezer units Insulation Heat pumps Commercial cleaning equipment Double glazing Solar thermal Composting systems Heating and cooling systems Solar PV Water recycling systems LED lighting Wind turbine Voltage optimisation

Benefits of the loan

37

• Unsecured
• Interest free for many applicants
• Repay over a maximum of 8 years if applying for a renewable

technology (usually higher value loans)

• Funding available for a wide variety of work (see previous slide)
• No processing, arrangement or administrative fees
• Greener business
• Save money

More information and how to apply

38

• For further details go to the Resource Efficient Scotland website:

www.resourceefficientscotland.com

• Or contact an expert adviser at Resource Efficient Scotland on

0808 808 2268

• Application form also available on the website

k

Join our webinars next week

• Making the most of the

Resource Efficient Scotland interest free loan Tuesday 28 March, 12:30 PM - 1:15 PM

• How to build a business case

your finance team will love Thursday 30 March, 12:30 PM - 1:15 PM

k