Interest-free loans for new variable speed drive installations could be withdrawn by the Carbon Trust if there is not an immediate increase in their take up, says Andy Parker-Bates of Parker SSD Drives. In this last DPA email newsletter of 2009, Andy urges companies to participate in the scheme and reap the benefits.
The Carbon Trust's interest-free loan scheme has a pot of GBP100m, earmarked for drive and other energy saving equipment loans, but if there is not enough interest from industry in the New Year the concern is that money may be diverted elsewhere.
In these hard economic times and with a General Election looming, the government needs to be seen to be supporting industry - and promoting energy efficiency. If the current scheme is not working well, funding for future years may well be scaled back, put into other schemes or scrapped altogether as demands to balance the public purse increase.
The underlying principle of the scheme is that the drive is effectively free of charge, its cost being paid for out of savings in the energy bill. It's a great idea and it would be irresponsible to lose it, which may happen unless industry starts to back it more readily before the end of this financial year.
The scheme is e simple to apply for online click here and is flexible so that it is available for many installations. Any project of any size is eligible to apply provided it can demonstrate energy savings.
For every 1.5 tonnes of CO2 saved by the installation of new equipment, GBP1,000 can be borrowed, with repayment scheduled over a period of up to four years. The value of the loan is GBP3,000 minimum and can be up to GBP500,000 for large-scale projects.
The majority of drives will pay for themselves in under 18 months, usually in less than a year. Most installations run for at least five years, with many still going after ten or more. So they are always a good investment and the loan scheme means there isn't even an initial outlay to recoup.
Significantly, the loans are unsecured as well as interest free. There are no arrangement fees and the application process is straightforward, starting with a few mouse clicks on the Carbon Trust's website. What's more, many equipment suppliers can complete the loan application on their customer's behalf, simplifying the process still further.
Loan repayment periods are determined by the energy-savings achieved up to a maximum four year period and as the scheme is designed for energy savings to cover repayments, the loan will effectively pay for itself.
Old equipment can adversely affect a company's competitiveness, particularly in the international arena. Upgrading plant and machinery ahead of the expected recovery in trade is vital for effective growth. And it will put you ahead of the curve on pending environmental legislation too.
The scheme is open to small and medium sized (SME) companies that have been operating for at least 12 months in England and Scotland, and to all businesses in Wales and Northern Ireland. It is available for drives and other energy saving equipment such as motors and control systems; it can also apply to plant such as refrigeration, compressors and conveyor systems.
And it is not just for manufacturing and production plant; drives fitted to building controls and air conditioning systems also qualify, as do insulation, heat recovery and solar systems.
I'm grateful to Andy for providing this timely reminder. If you think you qualify and have identified areas where you are able to save energy in your operations, then act now before this offer from the Carbon Trust dries up altogether.
Les Hunt
Editor