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On Carbon Trust loans

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http www carbontrust co uk energy takingaction about loans htm

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£200,000 for free

More free money. In 2006 we informed you that the Carbon Trust (CT) was handing out money for carbon-cutting improvements in the form of interest-free loans (see The next step). At the time, the most it would hand over for a project was £100,000. However, the government has now allocated a bigger cash pot - £35 million to be precise - and increased the limit to £200,000.

How does the scheme work? The size of the loan offered and its repayment period will be based on your projected CO2 savings, which will be assessed by the CT. To see how much your project could save, its website has a loan calculator and further details on the type of projects available.

Tip. Use the calculator to identify how much you can borrow and what the payback time will be. However, be warned that it’s a bit fiddly to use. And, it does require quite detailed figures to make the calculations.

How to apply. The application process is web-based, though you will need a lot of information before you attempt to apply. This is all specified on the CT website, but it’s worth noting that you will need details of the project proposal, including information about the equipment being replaced and installed, as well as the energy savings.

Are there any downsides? If you can find equipment that will cut your CO2 output, then the loan scheme takes some beating. However, although it’s marketed as a simple web-based application process, when you see the form, you will realise that “simple” is probably not the best word to describe it. But, even though the scheme is more complicated than it needs to be, it still offers an unbeatable loan rate deal. At a time when banks are not keen to lend to anyone, this is probably the best way of raising finance for CO2/money-saving projects.

For a previous article on Carbon Trust loans (EN 03.10.01A) and for a weblink to the application website (EN 03.10.01B), visit http://environment.indicator.co.uk.