Grants and Funding

Energy Crops Scheme The Energy Crops Scheme provides establishment grants for short rotation coppice and miscanthus, and also aids short rotation coppice growers to set up producer groups. Applicants need to demonstrate that they have or will have an energy end-use for the crops.
www.defra.gov.uk

English Woodland Grant Scheme

The English Woodland Grant Scheme is the Forestry Commissions suite of grants designed to replace the Woodland Grant Scheme. Grants include:

• Woodland Planning

• Assessment

• Regeneration

• Management and Improvement

• Woodland Creation Grant (to re-open in April 2006)

For further information visit: www.forestry.gov.uk

Bio energy Infrastructure Scheme

This scheme was originally run as a one off round in 2005. The purpose was to provide grants to farmers, foresters and businesses to help develop the supply chain required to harvest, store, process and supply energy crops and wood fuel to energy end-users.

The Government published plans to run a further round of the Bio energy Infrastructure Scheme in its response to the Biomass Task Force Report. This scheme is expected to run in 2006/2007 with available funding in the region of £3.5 million.

For further information visit: www.defra.gov.uk

Clear Skies

This funding programme has now been replaced by the Low Carbon Buildings Programme.

Clear Skies, funded by the DTI and managed by BRE, aims to give householders and communities the chance to realise the benefits of renewable energy by providing grants. Householders can obtain grants between £400 and £5000, whilst not-for-profit communities can receive up to £100,000 for grants.

Grants are given for installation that are:

• Solar Thermal

• Wind Turbines

• Micro/ small scale hydro turbines

• Ground source heat pumps

• Room heaters/ stoves with automated wood pellet feed

• Wood fuelled boiler systems

Community Energy Grants

This grant programme has now finished.

The Energy Saving Trust and The Carbon Trust jointly ran a support programme providing guidance and funding for the installation and refurbishment of community heating schemes in the public sector across the UK. £50 million in grants has already been successfully allocated to develop and implement community energy projects.

Low Carbon Buildings Programme

The DTI's Low Carbon Buildings Programme will provide grants for micro generation technologies for householders, schools, community organisations, the public sector and businesses. The programme will run over 3 years, starting on April 1st 2006 and replaces the DTI's Clear Skies and Solar PV programmes. Technologies the programme will cover are:

• Solar photovoltaic

• Wind turbines

• Small hydro

• Solar thermal hot water

• Ground/water/air source heat pumps

• Bio-energy

• Renewable CHP

• Micro-CHP

• Fuel Cells

Before applying for grants under this programme, you must undertake a number of energy efficiency measures.

For further information visit www.est.org.uk

Bio-Energy Capital Grants Scheme

The Bio-Energy Capital Grants Scheme is jointly delivered and funded by the Department of Trade and Industry with input from the Department of Environment, Farming and Rural Affairs. The scheme, which closed on 31st July 2006, focused on providing support to small-scale biomass heat and combined heat and power projects. This is in line with the recommendations of the Biomass Task Force report published November 2005.

For further information visit: www.biglotteryfund.org.uk

Enhanced Capital Allowance Scheme

The Enhanced Capital Allowance Scheme provides tax incentives to companies investing in renewable energy technologies.

Further information is available at www.eca.org.uk

Research and Development

Low Carbon Research and Development Programme

The aim of the programme is to support, through grant funding, the development of new low carbon vehicle technologies that are in the vital pre-competitive stage of development.

For further information visit: www.est.org.uk

Sustainable Farming and Food Science

Defra's sustainable farming and food science is delivered within 4 broad scientific areas:

• arable crops and farming systems science

• food technology

• horticultural crop sciences

• Sustainable livestock farming.

For further information visit: www.defra.gov.uk

Carbon Trust Loans

Start saving money on your energy bills with a 0% interest Energy-Efficiency Loan

Energy-Efficiency Loans from the Carbon Trust are designed to save you money when you replace or upgrade your existing equipment with a more energy-efficient version. So, if you're a small or medium-sized enterprise (SME) in England or Wales* (regional variations may apply), you could borrow £5,000 to £100,000 unsecured and interest free to fund projects such as lighting, boilers or insulation. However, all businesses based in Northern Ireland* that have been trading for at least 12 months may now be eligible to apply for an unsecured interest free loan of up to £200,000.

What are the eligibility criteria to apply for an Energy Efficiency loan?

The Company
To be eligible the company must be based in England or Wales and has to fall within the definition of a SME (small or medium sized enterprise), namely:

1. Less than 250 full time employees
2. Less than 50million Euro turnover (approx £35million
3. Less than 43million Euro assets (approx £30million)
4. No controlling interest more than 25% by a non-SME (i.e. it is part of a larger organisation)

In Northern Ireland all businesses may be eligible.

In addition, the company should have a trading record of more than 12 months. We are generally unable to make loans to companies in the Transport sector; activities linked to the production, processing or marketing of Agricultural or Fisheries products, or for export related activities. Further details are available from the Carbon Trust helpline on 0800 085 2005.

The Investment
Energy-Efficiency loans are intended to encourage qualifying companies to invest in energy saving equipment that either upgrades or replaces existing facilities. Any project where the cumulative value of the savings resulting from the project over the first 5 years exceeds the capital value of the loan may qualify.

Note also that the loan may be used to cover, for example, installation and commissioning as well as the capital cost of the equipment provided the payback criteria are still met.

How to Apply for an Energy-Efficiency Loan
The first step is to contact the Carbon Trust, telephone 0800 085 2005. Alternatively, companies are advised to complete the preliminary eligibility checklist on the website www.thecarbontrust.co.uk/loans

For companies in Scotland, a similar scheme, Loan Action Scotland, is available, for more information please go to www.energy-efficiency.org.uk

Enhanced Capital Allowances

Give yourself a break - investing in energy-saving equipment does more than just save your business money.

Spending on designated energy-saving technologies and products can qualify 100% enhanced capital allowances, allowing a business to claim upfront tax relief against the taxable profits of the period of the investment. That compares to the general rate of capital allowances for spending on plant and machinery, which are 25% a year on the reducing balance basis. ECAs can boost cash flow and shorten the payback period. So with over 13,500 products listed what is stopping you?

How it works.
1. Choose an ETL product
The scheme applies to a wide range of technologies and equipment from boilers to refrigeration. New products are added on a monthly basis.

2. Make a capital purchase*
Once you've identified the product or technology from the ETL, make your capital purchase of plant & machinery. Keep your invoice as you would normally.

3. Claim the Enhanced Capital Allowance
Include the cost of the equipment in the box on the tax return for first-year allowances. Check the tick box to indicate that you are claiming ECAs. There is no requirement to provide any supporting documentation with the return.

*Only applicable to companies paying corporation tax

Benefits
Here is an example to illustrate the cash flow benefit of an ECA. A company paying tax at 30% spends £10,000 on an ETL-listed product. It claims £10,000 ECAs against its taxable profits of the period of investment reducing its tax bill by £3,000. That compares to the £2,500 allowances generally available for spending on equipment, which would have reduced the company's tax bill by £750. And of course that doesn't include the savings you make on your energy use with the new equipment.

Purchaser

• Claim 100% ECAs on qualifying spending:

• (a) The cost of the qualifying equipment, and

• (b) Direct transport and installation costs.

• Provides a financial incentive to end users through upfront tax relief

• Potentially reduce running costs and payback periods

• Reduced energy use leads to lower energy bills and reduced Climate Change Levy payments

Manufacturer

• Potentially increasing sales of ETL approved products

• Acts as a marketing tool for manufacturers to promote product development and innovation

• Use the ECA ETL symbol on approved product(s) to promote product differentiation

• performance,

• emissions reduction potential, and

• the opportunity for purchasers to claim an ECA.
  

Further information
For more information on Enhanced Capital Allowances for energy savings and investment call the Carbon Trust on 0800 085 2005 or visit www.eca.gov.uk/etl