Funding Projects: Does your business have internal targets to achieve Net Zero?

Energy and water efficiency measures are continually evolving with a greater emphasis on implementing innovation to meet with government and internally led environmental targets.  

Whilst there is an overwhelming determination to meet UK targets such as Net Zero 2050 and to move towards a greener community, there are items all businesses must consider which is internal resource, time, and money.

Are you looking to improve the user experience, strengthen your commitment to energy reduction or simply educate others on the impact energy and water can have on the environment then there is a project ready to be unearthed.

With any environmental project, there are some simple steps to consider such as:

Most importantly:

  • Do we have the funds available and what are the ongoing costs?

The cost of the project is ultimately what decides whether the technology will be introduced into the wider community.   In my experience and having worked in both public and private sectors, there are companies who will only review a project that can be funded internally and there are others who are more open to a funded model.

There are pros and cons to both capex and funded models and many factors to consider such as company size, budget availability and what support is available from the board.  

Large companies may already have a focus on energy efficiency guided by government schemes such as ESOS, SECR, EUETS, MGHG and Climate change agreements whereas small to medium sized companies may only be starting to consider the journey to a greener future.

At DB Enviro, we want to align your drivers and targets by recommending innovation bespoke to your business model and if there is a grant or funding model that will complement the recommendation then we will try to find this.

Solar PPA Projects

Solar PV is a low maintenance solution that can be installed with no up-front cost.  Is your building roof suitable, electrical infrastructure ready and your site energy intensive then solar can be a solution to consider.  With Power Purchase Agreements available you could have energy at a lower rate than you would pay your supplier and add in battery storage to maximise the potential to generate and store on site

EV Charging Points

As we move towards a greener transport infrastructure, the requirement to have an EV charging point available to staff, visitors and clients will become more common place.

The Energy Saving trust are offering companies in Scotland the opportunity to install EV charging points with up to 50% grant towards the total cost of the project including the charger and infrastructure.  This finding is limited therefore to take advantage please get in touch.

The Office of Low Emission Vehicles will also provide a voucher scheme and support your project by offering a grant of £350 per charger.  This voucher scheme is available across the entire UK.

Benefit in Kind Tax

Considering an electric company car is now more attractive than ever following the announcement in the spring of 2020 where the government confirmed that full electric vehicles would be 100% exempt from company car tax or BIK tax.  This is a great incentive for colleagues to go electric and help reduce emissions created from transport.  

Leased Projects

There are many opportunities available called “as a service” which allows companies to install projects such as LED Lighting or AM&T platforms with a small contribution towards labour or no upfront cost at all.  Leasing allows the user to show a commitment to staff and visitors without the initial outlay and paying the technology back over an agreed monthly instalment.  In most cases this support would be cash positive so you would be paying back less that what you were saving through implementing the technology.

Enhanced Capital Allowance

ECA is a tax relief that can be activated following the installation if energy efficiency technologies such as LED lighting, motors, pumps, variable speed drives, water conservation projects etc. within a given tax year.  The scheme was recently extended to the 31st March 2021 therefore be quick to take advantage of reduced corporation tax liability.

SME Localised Support

Community funding is available locally to your business with regional funding to help with the implementation of energy efficiency, transport, and environmental projects.  There are grants available and funding models where a business loan with 0% finance can be accessed.  The localised schemes are more suited to the SME business and a great way to reduce overheads and improve efficiencies.

Industrial Energy Transformation Fund

The IETF is an example of a matched fund project suitable for extremely large companies with a huge caron footprint, helping the government to meet with Net Zero 2050 targets.  The matched funding is a minimum of £250,000 and suitable for supporting feasibility studies towards a change in heating fuel for example and also funding towards implementation. There is £289 Million of Funding available in England, Wales & NI and £60 Million in Scotland.  The scheme opened in July 2020.

Distillery Fund

The government have allocated £10 Million Pounds towards supporting distilleries to achieve a lower carbon future. Although the funding is sector driven, the distillery industry is renowned for being a high energy user.  This could be a great opportunity for any distillery looking to move towards a greener future.

With any environmental project, there are some simple steps to consider such as:

  • • Does the renewable or reduction strategy fit with our business model?
  • • How do we know that this technology is the best fit for our business?
  • • Do we have the resource internally to manage the project post-installation?
  • • Do we have the space available to house the technology?
  • • Have we chosen the correct partner to project manage our project?