Salix Funding Explained
Salix is a publicly-funded scheme that provides 100% interest-free, conditional loans to public sector organisations to improve their onsite energy efficiency.
To date, Salix has funded over 12,000 projects with 851 public sector bodies, valued at £302.8 million. This has saved the public sector £82 million annually and £1.13 billion over the projects’ lifetime. In the future, this will reduce public sector carbon dioxide emissions by 466,190 tonnes annually and almost 6.2 million tonnes over the lifetime of the projects.
Salix supports energy efficiency improvements for public sector bodies, such as Local Authorities and NHS Foundation Trusts. The capital cost of the project is weighed up with each tonne of CO2 saved on a lifetime basis. Depending on the carbon savings, loans must be paid back within a set period of time (depending on which Salix fund you apply for – the criteria may be different).
Various pots of money are available through Salix, with differing criteria, depending on the type of organisation and where you are in Britain.
Various tranches of funding are available through Salix, with differing criteria, depending on the type of organisation and where you are in Britain. But, in simple terms, there are two main types of Salix funding programmes available.
Salix Energy Efficient Loans
For the first five years, savings made are used to pay back the interest-free loan. Once the loan is repaid, the continued savings enable the organisation to use the capital for other budgets, such as the purchase of equipment.
The Recycling Fund is a ring-fenced fund managed by the public sector organisation, with money provided by the organisation and match funded by Salix. The project loan is repaid into the fund from the financial savings delivered by the projects – this allows the fund to be continually used for energy efficiency projects, hence the term ‘Recycling Fund’. At the same time the organisation continues to benefit from the savings that accumulate once the project has been fully repaid.
Concept Energy can support your organisation with all aspects of the Salix application process.