‘Invest to Save’ Finance Projects

The up-front cost of Energy Conservation Measures (ECMs)

Typically, in order to implement an energy conservation measure (ECM) organisations need to front the cost of the new equipment and then wait for the benefits of the investment to materialise on the bottom line once the initial capital outlay has been recovered. This initial period is typically in the region of one to five years for most technology upgrades.

A financial directors’ typical reaction to any project that puts an unnecessary weight on the bottom line is to say ’no’ to it. In the current climate, this shortsighted approach is somewhat understandable, hence the need for a different approach.

‘Invest to Save’ finance

‘Invest to Save’ finance is offered by an increasing number of financial institutions, the idea being that the lender lends knowing that energy cost savings made will provide the funds needed for the client to meet the loan repayments.

The government’s £100k ‘Energy Efficiency Loan’ is a prime example of this. However, it is somewhat limited in that only organisations that are classified as SME’s are eligible to apply.

‘Invest to Save’ loans are offered based on the lender being satisfied that sufficient project due diligence has been committed and the proposed energy savings will materialise and be available to meet the loan repayments.

This is a fantastic opportunity, for organisations to implement large efficiency projects and make significant savings at virtually no cost and is sadly under-used in the UK, whilst on the continent it is very popular.

William Martin Energy can help you secure finance

WM Energy can assist your organisation in obtaining this finance:

• by managing the measurement and verification (M&V) of data during the projects implementation phase.
• by managing the installation of the equipment.
• by ensuring that the project adheres to the loan criteria.

Call WM Energy today to discuss your ‘Invest to Save’ finance needs on 0207 378 5800 or contact us by email.