29th September 2021
Organisations are facing increasing pressure to produce sustainable strategies and reduce their carbon emissions. Achieving this will not only ensure that they can meet the UK’s Net Zero Target, but also generate higher levels of profitability.
With this mounting sense of urgency, many of our clients come to us with the same concern: how will we fund this and implement those changes? But avenues of funding are not so much of a barrier as you may think. Sometimes all you need is the right expertise to help you overcome the jargon and understand which is right for you.
At Barker we take advantage of the ever-evolving funding landscape, pairing great opportunities with the client in need. So, what is the right funding avenue for your organisation? Let’s look at the options:
The Public Sector Decarbonisation Scheme (PSDS) offers funding support to public bodies. It allows organisations to upgrade existing heating systems using low carbon technologies such as air source, water source or ground source heat pumps. In previous years, £31 million worth of funding was allocated to the education sector, and we helped to our clients secure over £10 million of this. The new application portal opens on 6th October 2021, so if you have a heating system you’d like to upgrade, be sure to contact us to discuss your application.
The Public Sector Low Carbon Skills Fund is a vital resource, providing grants to unlock decarbonisation in the public sector. For organisations that still heavily rely on fossil fuel-based heating, the LCSF is ideal as it enables you to develop energy strategies for more sustainable forms of heating. There is over £15 million worth of funding available, making it a fantastic funding avenue. While the Phase 2 deadline has just passed, we can support you with your bid for the next round of applications.
Salix Finance offers Government funding to the schools and academies across the UK. They work in partnership with the Department for Education to reduce energy usage, improve sustainable technology and create a more comfortable environment for learning. Salix funding helps academies to lower energy their bills at no upfront cost as it is interest free and repaid to the DfE based upon predicted energy savings. The launch of the next round is due in Autumn 2022 so it’s one for the calendar.
OPERATING LEASE /COMMERCIAL FINANCE OPTIONS
Less is More Capital is a social enterprise financial institution – their mission is to generate additional resources for children in education from disadvantaged backgrounds. They provide funding for PV and LED installations. These installations generate a surplus that can be reinvested into educational social outcomes. At Barker, we’re proud to be project management partners of Less is More Capital. If you think your school could benefit from their services, get in touch.
Maxxia provides bespoke asset finance solutions to organisations in the public and private sector. They offer access to capital for investment and a cash flow friendly way of acquiring new equipment. As part of their school leasing solution, Maxxia supports green initiatives and works to meet the latest government directives on sustainability. They provide energy-efficient equipment, install renewable energy sources and offer an end-of-cycle asset recycling service.
A Power Purchase Agreement (PPA) is an agreement between renewable energy providers and organisations. The provider owns, installs and maintains an energy system in any organisation, allowing them to receive tax credits and an income from the sale of electricity. For the organisation, PPA’s allow for stable and low-cost renewable electricity with no upfront cost. PPA’s are perfect for organisations that want to reduce energy costs, hedge against energy price increases or improve the resiliency of their operations without spending their own capital.
The Let’s Go Zero campaignis a community initiative by Ashden that provides invaluable support for setting up zero carbon targets for schools. They help to develop roadmaps for delivery and use these roadmaps to increase pressure on the UK government to receive more support. While not a direct avenue for funding, the Let’s Go Zero campaign works with schools and the government for lasting change. As more organisations join the campaign, the government is more likely to provide increased funding and generate fresh policies for the education sector.
Barker can help your organisation apply for funding, plan and implement a sustainability strategy. Just call us on 01279 647111 or drop us an email at email@example.com.