Salix funding helps universities cut energy costs by over £210m
A partnership between public sector funding provider Salix and the Higher Education Funding Council for England has helped universities cut energy costs by more than £210 million.
Our work with Salix in education energy-saving projects has also demonstrated the power of public finance to effect big changes in the way institutions cuts costs and reduce impact on the environment.
We work closely with schools around the country to ensure that they can secure funding for energy-saving projects, and we manage the application process to reduce the complexities. Find out more about our Business Services for education and other public sectors.
Salix provides 100% interest-free capital for education institutions and other public sector organisation to take advantage of efficient technologies such as LED lighting and repay loans with money saved on energy bills.
We provide a fully managed, end-to-end service from survey to financial modelling, loan application and installation. See our Projects section for success stories.
Revolving Green Fund
In 2008, Salix and HEFCE formed a partnership to provide higher education institutions with access to capital for energy efficiency projects and launched the Revolving Green Fund 1 (RGF1.
The success of the RGF is shown in this infographic:
So far, 57 universities have completed more than 2,600 projects and the original £25 million investment has now enabled over £50 million worth of energy saving projects to go ahead. Further planned projects will provide more than £210 million in savings.
As Salix explains:
“Each university holds a ring fenced fund which is used to invest in energy efficiency projects. As soon as the savings to the energy bill are seen, they are paid back into the fund, enabling ongoing investment in energy efficiency projects. Once the project loan is repaid, the universities then go on to benefit from the ongoing savings for the lifetime of the project.
“The RGF provides excellent value for money, as the funding enables projects that continue to make financial savings long after the initial cost of the project has been repaid. The fact the fund is ring fenced allows universities to take a long term approach to energy efficiency within their estate which is essential for successful carbon reduction programmes.”
One excellent example of what can be achieved is Keele University. Annual savings on energy bills from the projects implemented using the fund are estimated to exceed £540,000 a year. The university originally accessed £200,000 from the RGF with £50,000 from its own funds.