Salix loans save public sector cash and cut CO2

26 August 2010

Just one year after the launch of the Salix Energy Efficiency Loans (SEELS) fund, 297 energy efficiency projects have already been completed across the public sector, saving an estimated 13,700 tonnes of CO2 and reducing energy bills by over £2.2m annually.

Schools, hospitals, universities, colleges, central government departments and local authorities have all benefitted from Salix’s interest-free loan programme, which uses government money to fund basic energy saving initiatives. These save the public purse many times their cost by reducing unnecessary energy use.

All Salix funded projects use proven technologies that get quick results and continue to operate effectively for many years. Most pay back their costs within three and a half years.

Completed projects include:

· The installation of voltage reduction equipment at Loughborough College, saving 145 tonnes CO2 and £24,300 annually (with projected lifetime financial savings of £358,000), and at Middlesex University, saving 222 tonnes CO2 and £46,500 annually (projected lifetime financial savings of £685,000);

· Energy efficient T8 lighting at Hartlepool Borough Council, saving 44 tonnes CO2 and £6,000 annually (projected lifetime financial savings £132,000);

· Cavity wall insulation at South Warwickshire General Hospital, saving 29 tonnes CO2 and £6,200 annually (projected lifetime savings £371,0000);

· Boiler upgrades at St Paul’s Church of England Primary School, saving 36 tonnes CO2 and £8,300 annually (projected lifetime savings £138,000).

In Wales, currently eight projects with a total value £76,231 have been completed and will save 98.8 tonnes of CO2 annually. Basseleg school, for example, has used a loan to install energy efficient T5 lighting, which will save a lifetime total of £88,600 and 35.6 tonnes of CO2 annually. The programme in Wales is a revolving loan scheme which has c£5m, provided by Welsh Assembly Government, which will continue to provide support to public sector organisations throughout Wales over a number of years.

In total around 1,500 energy efficiency projects across 218 organisations will be completed with SEELS funding. This will save a total of around 1.45m tonnes of CO2 and £244m in reduced energy bills over the lifetime of the projects.

Paul Chisnall, head of the SEELS programme said:

“The success of the Salix model demonstrates clearly that well managed investment from government succeeds in getting public sector organisations to prioritise energy efficiency, while delivering maximum return on investment. Without the intervention of Salix none of the projects would have taken place. In an environment where the public sector faces demanding targets for CO2 reduction, as well as greater pressure to be cost effective, our expertise has never been more valuable.”

Salix Finance also administers an £84.6m recycling fund programme which enables public sector organisations to carry out energy saving projects through the application of CO2 reduction technologies and then re-invest the savings into further energy saving projects. Currently, around 168 public sector bodies have a Salix recycling fund.