Grants For Solar Hot Water Systems

Grants for solar hot water systems to commercial organisations are available through the Low Carbon Building Program Phase 2. Under the scheme, commercial businesses can apply for a 50% grant for the purchase and installation of a solar hot water heating system, at one or more buildings within a site owned or leased by the applicant. For heat projects the limit has been amended to support larger scale heat projects up to 300kWh.

This program is administered by the Energy Saving Trust (EST). The EST is the body you have to deal with to receive your grant. SIG Sustainable Solutions can provide you with all necessary support throughout this process, but the application must be completed by the end user. For more information and to begin your application to the LCBP, please click here.
 
Interest Free Loans from The Carbon Trust

As an alternative to a LCBP grant, a commercial organisation can apply for an interest free loan from the Carbon Trust anywhere between £3,000 and £500,000 in value to be used for the installation of a solar hot water heating system.
 
The decision on whether you will be awarded the interest free loan for a solar how water heating system is based on your buildings current energy use and the projected savings a renewable energy system would give you; if this is not deemed to be high enough then your application will be refused.
 
As a large commercial organisation or SME, you can borrow any amount between £3,000 and £500,000 to cover the cost of installing energy saving technology, and many other solutions are available as well as solar hot water heating.

The loans are unsecured and interest free, with no arrangement fees and a straightforward application process. The loans are repayable over four years maximum and the scheme is designed for energy savings to cover the repayment costs, meaning the loan will effectively pay for itself.
 
Loan Eligibility

To be eligible for an interest free loan, your organisation must fulfil the following criteria:

• Be a private sector business,
• Have been trading for at least 12 months,
• Have an acceptable credit rating,
• Be based in UK. (England, Scotland and Wales - All Small or Medium-sized Enterprises (SME) OR any business that do not qualify for participation in the Carbon Reduction Commitment. Northern Ireland -any sized enterprise)

To clarify the eligibility of UK-based SME's, the EU definition of an SME is an organisation with:

• Less than 250 full time equivalent employees,
• Less than £50m Turnover (approximately £43m) and/or less than £43m assets (approximately £37m),
• No controlling interest of more than 25% by a non-SME.

As a guideline, the Carbon Reduction Commitment typically includes businesses with an annual electricity spend greater than £500,000. The EU rules on state aid mean the Carbon Trust is normally unable to offer loans to organisations involved in the transport sector (for the acquisition or adaptation of vehicles), agricultural or fisheries products (production, processing, or marketing prior to the first sale), or export-related activities.
 
Apply For a Loan
 
Applications for interest free loans for solar hot water heating systems are made directly on the Carbon Trust's website. In order to move smoothly through the form it is advisable to have the following information to hand before getting started:

• Registered Company Details - (Registered name, address and registration number)
• Eligibility Criteria - (Verify that your organisation is and SME or doesn't currently qualify under the Carbon Reduction Commitment)
• Energy Saving Assessment - (Energy consumption of equipment being replaced, Energy consumption of equipment being installed,
• Information about the projected energy savings for the project)
• Supplier Quotes - (The electronic copy of your supplier quote must be on their headed paper and include: your registered company name, your supplier registered number, a quotation reference number, and details of the equipment to be supplied)
• State Aid - (Details of De Minimis state aid received (financial benefit a business gains by not paying interest) in the past three years)

Begin your application for a loan.
 
Other Sources of Funding

Depending on the location of your commercial building, funding may be available for the installation of solar hot water heating systems on your building, as well as other technologies, from your local council. This funding is often offered at set time periods throughout the year, and SIG Sustainable Solutions would advise you to check with your local council before commencing work to ascertain what, if anything is available.