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SMEs in Energy Efficiency Boost

energy efficiencyUp to 20 UK SMEs stand ready to be given up to £2m to invest in energy efficiency, that is the sum promised by three organisations focussed on the promotion of and investment in renewable energy.

At the core of the scheme is the UK Green Investment Bank, a business owned by the UK government who have access to £3.8bn of capital to invest in green energy projects.

Also involved is Sustainable Development Capital LLP, the fund manger for GIB and a specialist in advising investment firms on the sustainable market, and SI Capital, the private equity firm focussed on sustainable investment opportunities.

Together, the three organisations have committed to invest £2m, into the ‘Smart Energy Finance’ scheme operated by ReEnergise Finance. This scheme is designed to provide loans for energy efficiency measures focused on SMEs.

Green Investment Bank

GIB’s remit covers large projects of £1bn+ as well as having a responsibility for supporting smaller projects and having dedicated funds to promote activity lower down the business hierarchy with the focus on innovative new technology.

Indeed this is not GIB’s first foray into investment for small-scale projects; In 2012 they invested £50m in the UK Energy Efficiency Investments fund, to provide finance for SME level projects.

This latest investment is expected to fund a small number of loans ranging from £20,000 to £400,000, focussed on the installation of biomass boilers, low-energy lighting, and combined heat and power.

Shaun Kingsbury, Chief Executive of the UK Green Investment Bank, said at launch:

“The investment announced today will help small businesses across the country to save money.

“Energy is a significant cost for any company, and putting in place energy efficiency measures will have a real impact on these organisations’ bottom line.

“The funding model means that they won’t need to find the capital upfront, and can pay for the capital costs from the savings they make on energy bills.

“Energy efficiency makes good commercial and environmental sense.”

In response to GIBs announcement Minster of State for Business and Minister of State for Energy, Michael Fallon said:

“This is a welcome investment that helps small businesses and shows that going green isn’t just about building offshore wind farms or new energy plants.

“Any good business should want to become more efficient and saving on energy costs makes good business sense.”

Sounding a note of caution however, Jonathan Maxwell, CEO, Sustainable Development Capital warned that more needed to be done to build on the announcement as:

“Evaluating and structuring bespoke small energy efficiency investments into the SME sector is a challenge for investors”

With £3.8bn to invest and just £2m set aside for SME focussed initiatives in this latest announcement there is clearly a long way to go before the wider SME market can receive a similar boost to their business’ bottom line as will be awarded to the lucky 20 chosen under this scheme.

If you want to be considered for the GIB scheme then contact ReEnergise Finance on 01428 608 462 or visit the website

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