Grants
There is limited Government funding for Renewable Energy projects. These funds are usually in the form of grants and are biased toward community projects. Local regional development agencies may be the best source of information as the funding is often channelled through them.
Specific funds for England and Wales are available from the following sources:
The Community Sustainable Energy Programme (CSEP) funded with £8m from the Big Lottery Fund's Changing Spaces Programme and managed by the Building Research Establishment (BRE). Funding is limited to non-profit sector organizations using products and installers contained in the Green Book Live resource (www.greenbooklive.com).
In addition there is further £1m for organizations for “matched funded” project development grants to identify the best microgeneration strategy which is limited to funding of consultants listed on the Low Carbon Building Programme register at www.communitysustainable.org.uk.
From 1 April 2008. grants of up to 50% are available from the Low Carbon Building Programme for microgeneration projects for public buildings and not-for-profit companies. These grants could be worth up to £1m for individual sites and more information is available from www.lowcarbonbuildingsphase2.org.uk.
Householders can still apply for grants from Phase 1 of the scheme (whilst funds are available) and information on this available from www.lowcarbonbuildings.org.uk.
Grants of up to £100,000 are also available for industrial and commercial sectors from DEFRA (phase 1 ran until 20 May 2008 in England and Wales, with further phases planned up to a total spend of £4m) to support the development of renewable heat projects. Grants are limited to a maximum of 40% of the additional cost of bio-energy plant and details are available from www.bioenergycapitalgrants.org.uk.
Grants in Scotland are similar but administered by the devolved administration.
Loans
Public sector bodies can apply for interest-free loans for energy efficiency projects through Salix Finance which has supported about 1,000 projects so far and has funding of around £50m. More information is available from www.salixfinance.co.uk.
Industrial and commercial organisations can apply for loans for energy efficiency projects from the Energy Efficiency Loan scheme run by the Carbon Trust. Loans up to £100,000 are available which have to be repaid over 4 years. The loans are capped according to the estimated carbon saving of the project. More information is available from www.carbontrust.co.uk/energy/takingaction/loans
Capital Allowances
Companies can offset expenditure on high efficiency equipment through Enhanced Capital Allowances (ECA) on Corporation Tax bills. The equipment must be included on the Energy Technology List. Changes in the 2008 budget include the provision of lighting in new buildings and the ability to gain an ECA credit against losses which are surrendered. More information is available from www.eca.gov.uk. You will need to consult you Accountant or financial advisers about whether this could apply to you.


