Salix Finance Interest free finance for energy efficiency projects - - PDF document
20/ 03/ 2018 Salix Finance Interest free finance for energy efficiency projects in the public sector Wednesday 21 st M arch 2018 Hayley Veenhoven Todays Aims Introduction to Salix How the funding works Funding across the public sector
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Interest free finance for energy efficiency projects in the public sector Wednesday 21st M arch 2018 Hayley Veenhoven
S OLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC S ECTOR
Introduction to Salix How the funding works Funding across the public sector How Salix has worked with Parishes to date Sharing knowledge Summary and questions
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S OLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC S ECTOR
Worked in partnership with the Public Sector for 14 years Our M ission is to reduce Public Sector carbon emissions through energy efficiency investment using interest-free funding Funded by the Department for Business, Energy and Industrial Strategy (BEIS), the Department of Education, the Welsh Government and the Scottish Government National spread across England, Wales, Scotland and N. Ireland Wealth of knowledge and case study material to support public sector
S OLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC S ECTOR
Public sector budgets under pressure Cost of maintaining services Scrutiny of services to provide value for money Fuel Prices T echnology improvements Reduced cost of LED lanterns UK carbon reduction targets 57% by 2010 on 1990 levels
UK Government Drivers Economic & Technological Drivers
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Freely Available Information:
Case studies Application documents Blog Social media Webinars Short information films Support and guidelines for the private sector
Public Sector Only:
300 + Project Knowledge Slides (PKS) Best practice and client support material Regional meeting material and presentations
Recent articles: Energy in Buildings and Industry The Energyst HefmA Pulse Health Estate Journal Chartered Institution of Highways & Transportation FundEd Magazine
Figures accurate as of M arch 2017 * calculated using emissions factors published by government for carbon foot printing purposes
Pilot client schemes
Salix funding allocated
Annual energy saving
tCO2e* annual saving
Projects committed
Clients supported
Annual energy saving
Salix funding allocated
Projects committed
tCO2e* annual saving
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SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR
Data for all England Loans and Recycling Funds from J une 2016 to J une 2017
Key LED lighting Boiler replacement Insulation - building fabric Street lighting Glazing Building management systems Insulation – pipework Combined Measures Heating – controls Ventilation and cooling Heating and hot water VSDs/ Motor Controls Combined Heat and Power Other
SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR
Key Street lighting LED lighting Combined Heat and Power Combined Measures Boiler replacement Heat recovery Chiller replacement Heating and hot water Insulation - building fabric Building management systems Glazing Insulation - pipework Boiler controls
Data for all England Loans and Recycling Funds from J une 2016 to J une 2017
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Key Local Authority National Health Service Academy School Higher Education Institute M aintained School Further Education College Emergency Other
Data for all England Loans and Recycling Funds from J une 2016 to J une 2017
Significant growth in the last 3 financial years Increased interest in large scale retrofits Security of funding for multiple phase/ year projects Reservation of funding prior to procurement and final approvals Other areas of interest: Parish Councils & Emergency Services Payback criteria: 5 year payback £120/ tonne CO2e
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To save 10% on total energy spend (£750m/ yr) - £319.6m investment needed To save 10% on total carbon (242,218tCO2e) – £632.5m based
depending on grid changes
53 principal local authorities have completed street lighting projects with the support of Salix funds Projects are often split into phases/ years given their size Projects can be part funded from other sources if they exceed the Salix compliancy criteria Salix can engage with key decision makers A variety of street lighting technologies are eligible
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Replace some or all existing traditional luminaires with LED A column replacement programme Introducing adaptive controls (CM S or part-night lighting) Combination of the above
Finance Political will and organisation leadership Public opinion Previous infrastructure and investment plans PFI contracts or current contractor
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Existing recycling fund client since 2004 The pre-consumption kWh made up half of the council’s carbon footprint £39m total project cost, Salix funding £27m of overall project up to 5yr payback Project started M arch 2016, with residential followed by traffic routes Most ambitious individual LED conversion undertaken in Europe 18 crews working on installation – average over last 3 months (Dec – Feb 6300 lanterns per month) Using several lighting suppliers to promote competition and efficiencies Predicting 65.7% kWh saving and £5m annual savings over the lifetime of the technology
Project overview
Kent County Council are undertaking a 3 year programme to convert 120,000 lanterns to LED with Central M anagement S ystem (CM S). Salix funding was instrumental to the project happening.
Grendon had the aim of modernising the council’s street lighting lanterns to light emitting diodes (LED), which would reduce the council’s energy consumption and greenhouse gas emissions. The council used an interest-free loan of £4,800 to part finance a £9,500 programme to upgrade 34 street lights with energy efficient LED lanterns. Grendon now benefits from a 9,431 kWh reduction in its annual electricity usage, saving the council £970 and 4.24 tonnes of CO2 e* per annum.
Project overview
Grendon Parish Council in Northamptonshire applied to Salix for an interest-free loan to part finance the replacement of the council’s street lighting stock.
“ I would urge any other parish councils who are looking into financing the upgrading of street lighting to certainly consider Salix Finance as a source of appropriate funding.”
Ian Denton, Chairman of Grendon Parish Council
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Salix Energy Efficiency Loan Scheme (SEELS) Salix Energy Efficiency Fund (SEEF) Condition Improvement Fund (CIF)
(Academies and 6th Form Colleges) (Maintained Schools and 6th Form Colleges)
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Payback criteria: 8 year payback £200/ tonne CO2e In partnership with the Department of Education A long term £25 million fund Opportunity for local authorities to reach CO2e targets Significant financial and carbon savings
Funding available for NHS Trusts & Foundation Trusts. NHS Improvement fully approved Support for Sustainable Development M anagement Plans/ Carbon Reduction M anagement Plans Funding secured over multiple years to support long term estates strategies (including EPCs) T
, LED lighting, heat recovery, boiler replacement and BM S Unable to fund Clinical Commissioning Groups (CCG’s) & doctor surgeries (GP’s) Payback criteria: 5 year payback £120/ tonne CO2e
20/ 03/ 2018 11 Funding available for Universities and Colleges Building long term relationships to support carbon reduction targets
Rounds of funding for both Higher Education Institutions and the Salix College Energy Fund now
Dedicated HE/ FE team available to provide support in developing applications and projects
Payback criteria: 5 year payback £120/ tonne CO2e
Ring-fenced client sustainability fund Energy efficiency projects Energy savings
kWh = £ & CO2e
Additional partner top-up
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1. Visit our website at www.salixfinance.co.uk 2. Simple on-line application process. Download project compliance tool For projects valued over £100,000 – business case template Attach supporting information 3. Public Sector Body or supporting body submits application. 4. An automatic email is sent to the authorising official. 5. Application assessed and decision made typically within two weeks.
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Projects typically have 9-12 months to complete from commitment of funding Public sector client and contractor updates Salix at key project milestones Notify Salix of any delays in delivery at the earliest possible stage Once project completes: Public sector client submit the Completion Certificate (template online) to Salix
Loan repayments only begin after the project completes to allow the Public Sector Organisation to accrue savings Repayment dates are confirmed on project completion Repayments are made by Direct Debit Repayments are made twice a year over the agreed period of the loan
Parish Council £10,000 street lighting project Starts on site April 2018 and completes September 2018 Funding paid to client September 2018 on completion
Repayments – 10 equal payments of £1,000 April 2019 - £1,000 October 2019 - £1,000 April 2020 - £1,000 October 2020 - £1,000 April 2021 - £1,000 October 2021 - £1,000 April 2022 - £1,000 October 2022 - £1,000 April 2023 - £1,000 October 2023 - £1,000
Repayment Example
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Salix can issue reservation of funding for clients when an early stage commitment is needed for cabinet approval Benefits of a reservation of funding: Allows Salix to prepare for future applications – streamlining the application process Provides confidence for board/cabinet approval Can reserve funding for projects in future financial years
Additional Focus Areas Parish and Local Councils Emergency S ervices Transport Executives Museums & Galleries
Additional areas of funding
Dedicated Salix contact for support M eetings and workshop opportunities Access to online knowledge sharing area T echnical support available at pipeline and application stages Support during delivery and completion Opportunities for case studies, articles and adverts in magazines
Feasibility Internal Consultation Procurement M obilisation Installation
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S OLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC S ECTOR Name Title Programme & point of contact for Email Landline M obile Paul Smyth Head of Programmes All programmes & Technical S ervices paul.smyth@salixfinance.co.uk 0203 102 6912 07917 701184 Hayley Condie Programme M anager England – Local Authority buildings & street lighting hayley.condie@salixfinance.co.uk 0203 102 6913 07979 636863 Craig M ellis Programme M anager England - Higher & Further Education and Heat Networks craig.mellis@salixfinance.co.uk 020 3102 6917 Simon Pettett Programme M anager England – M aintained S chools & Academies simon.pettett@salixfinance.co.uk 02031 026 906 Hannah Taylor Programme M anager England - NHS hannah.taylor@salixfinance.co.uk 0203 102 6910 07989 200506 Sam Illsley Programme M anager S cotland & Wales sam.illsley@salixfinance.co.uk 0203 102 6905 07826 842718 M att Caville Programme M anager Technical S ervices matt.caville@salixfinance.co.uk 0203 102 6917 Alannah Powell PR & M arketing Executive All marketing activities including promotion, case studies & client articles alannah.powell@salixfinance.co.uk 0203 102 6811
Hayley.Veenhoven@salixfinance.co.uk www.salixfinance.co.uk @SalixFunded