Most people in industry will have heard of Carbon Trust
interest-free loans. Some may have been put off from
investigating further, thinking that dealing with a
government body would be a torturous exercise in red tape;
others simply assume that they would not qualify. IPE asks
Richard Hewitt,MD of Anglian Compressors, an authorised
distributor of Atlas Copco Compressors,about his experience

What are the key facts about
Carbon Trust Loans?
Richard Hewitt (pictured): The Carbon Trust
is an independent, not-for-profit, company
set up by the UK Government with support
from business to take the lead on low carbon
technology making it easier for end users to
access energy saving equipment. The Trust
has a bank of money which it offers out in
the form of 0% interest loans to a value of
£3000 to £100,000 to qualifying SME’s
(Small to Medium Sized Enterprises). The
loans are given over a period of two to four
years.

What is the process?
RH: The first action is to conduct an
energy audit. At Anglian Compressors
we visit the customer’s site and install
data logging equipment that will
monitor energy use, ideally over the
course of a standard week, and
then provide an energy report.We also make
recommendations at this point, perhaps to
replace a single speed compressor with a
VSD, and give the user a quote for the cost.

Is it complicated to calculate if the
loan is the right move?
RH: Surprisingly, no! A typical example
might see the end user spending £24,000 on
energy per annum. The energy audit might
report that 50% of the energy is wasted
unnecessarily (ie £12,000). If the
recommendation is for a £20,000 investment
in new technology then this amount can be
borrowed from the Carbon Trust over 24
months. Therefore the payback begins
immediately as the loan repayment per
month is £833.33 but the end user is now
saving £1000 per month on their energy
bill. Plus, the loan will be paid back after
two years but the savings will keep on
coming.

Does it mean piles of paperwork?
RH: Not necessarily, we have had five
successful instances in the last year when
following our survey and questionnaire we
filled in the loan application on the
customer’s behalf. The Carbon Trust then
contacted them and a conditional offer was
typically made within 24 hours.

So what’s the catch?
RH: Generally speaking it is simple, but there
are certain peculiarities.We have been
involved in 20 projects that involved a
Carbon Trust loan since 2009 with values
from £5000 to £45,000 and our experience is
that the accuracy of submission is vital if the
process is to run smoothly. I would advise
any company to seek the help of experienced
people, like ourselves, to help make this part
of the process straightforward.

How would you summarise the
scheme?
RH: The scheme is very important as a
means of overcoming barriers towards
investment in energy saving production
plant. Undoubtedly, the scheme came into its
own in 2009 when energy prices were rising
sharply and finance was difficult to access. If
you can engage with an experienced partner
to help with the submission process, then the
savings are very real and delivered almost
instantly, making it a very attractive offer.

For more information on Carbon Trust
loans, please visit: www.carbontrust.co.uk