A grant of up to £5 million has recently been launched, to help Small and Medium size businesses (SME’s) cut their energy costs by becoming more energy efficient.
The aim of the ReEnergise SmartEnergy Fund is to aid SME’s with loans from £25,000 to £250,000 for them to invest in energy efficiency measures and renewable technologies such as solar, wind turbines and biomass heating and will support the financing required to become more energy efficient such as insulation, lighting and monitoring systems.
According to Adam Hewson, Director of ReEnergise Finance, “banks are simply not lending to SME’s” so there is a demand for funding renewable energy and energy efficient projects. Therefore SmartEnergy have launched their own funding for SME’s with help from private equity fund manager SI Capital, who specialise in renewable energy and cleantech opportunities.
The loans will be available to a broad area of businesses but it is probable that the most interest will spark from specific sectors including manufacturing, hospitality, farming and education.
Michael Covington, the Investment Partner at SI Capital stated “SI Capital recognised the need for a specialist such as ReEnergise to provide alternative finance solutions for the energy efficiency and renewable energy market.”
ReEnergise are competing against established low carbon energy financing funds such as RBS’ £200 million carbon reduction fund and Siemens Carbon Trust’s £550 million Energy Efficiency Finance Scheme. However with this competition ReEnergise feel that what they are offering could be more appealing to borrowers specialist of the specialist knowledge entailed of the energy market.