Energys Group examines alternatives to Salix financing
A recent report published by University College London (UCL) finds the vast majority (72% and 92%) of public sector energy efficiency improvements would not have taken place without Salix financing.
Here at Energys Group, we’re intrigued by UCL’s report; we know upfront capital is essential to building sustainability in tomorrow’s UK. But, it is important to understand that Salix is not the only funding route for; others are available, even for the public sector.
Alternatives to Salix
That’s why a flexible funding approach, with the right partner, and detailed ROI calculations, can make all the difference.
This turned out to the case for BEMAT (Bedfordshire East Multi Academy Trust), an alliance of educational establishments comprising Gothic Mede Academy, Gravenhurst Academy, Etonbury Academy, Robert Bloomfield Academy and Samuel Whitbread Academy.
Determining that the time was right to undertake a lighting upgrade at three of the five schools (the others are expected to follow further down the line), BEMAT Head of Capital and Projects Ian Kite initially looked towards Salix Finance to enable the project to go forward, but various factors meant that he was obliged to think again.
The answer to the finance challenge came in the form of Utility Rentals’ operational lease solution. A player in the education world for more than two decades, Utility Rentals has partnered with Energys Group to provide an operating lease package that allows schools across the UK to acquire fully installed and maintained energy-saving solutions.
“We needed an alternative to Salix – and the Energys team was quick to respond with a solution. It became clear very quickly that an operational lease was the best way forward for BEMAT,” says Mr Kite. “In fact, it offers significant advantages over the Salix route. There is no requirement for any up-front capital investment; the cost of the lease is paid for through the monthly savings made – and all of the lighting is fully maintained for the duration of the lease. It makes sound commercial sense – and it de-risks the whole process for us.”
Want to find out more? Read the full story about our energy efficiency upgrades at Bedfordshire Multi Academy Trust.
Contact the Energys team to find out how your organisation can take advantage of alternative energy-efficiency funding options.
Energy Institute Report Highlights: Energy efficiency’s challenges and opportunities
New MEES guidance promises vast improvements for energy efficiency in commercial buildings
The Energys explainer: How can warehouse LED lighting boost profits?
Have a question?+44(0)1403 786212