Frequently Asked Questions

Updated 22nd November 2021 

Please note this area will be updated following our webinars of 28th October and 2nd November. Please see here for further details of these events. 

Q1. When will the Recycling Fund England changes come into effect?

You will be required to produce a three-year plan by 31st March 22; however, the new criteria will come into effect next financial year. 

Q2. What support will be offered?

We have provided a guidance document outlining the new criteria and FAQs to accompany this. Salix/Technical team will host webinars (LINK) on the changes to the Recycling Fund and what should be included in the three-year plan. You are also welcome to discuss the changes with your Relationship Manager by phone.

Q3. Can we fund projects this financial year that will complete next financial year?

Provided the project meets the new criteria you can commit funding towards the project from this year’s available funds. If the project is for single technology electrical load reduction measure, as part of the three-year plan, we would like you to provide justification for how this project will support a heat decarbonisation project in the future.  

Q4. I have multiple phase traded carbon measures (i.e., LED lighting schemes) planned for 2022/23; can these continue?

Yes, these will still be eligible under the new criteria provided you outline in the three-year plan how this will contribute to a longer-term heat decarbonisation project. 

Q5. I have a project in development that I was planning on committing within the next month or so, but it may not complete by the end of March 2022. Can I still go ahead and commit it?

Yes, as long as the project is compatible with the new criteria. 

Q6. Can I close the fund?

If the proposals don’t align with your organisation’s agenda, you can choose to terminate the fund. To initiate the process, we ask that the Sponsoring Director of the fund submits a letter confirming the request to terminate to Salix. The public sector organisation can then decide to pay the Salix portion in one, or in annual portions to the value of the annual project repayments. The latter option would therefore see the seed money being repaid to Salix across a period of up to 8-10 years.

Q7. Can I reduce the size of the fund?

Yes, if you would like to continue using the fund but would like to reduce the size of the fund, we are happy to work with you to arrange repayments in lump sums or over a period of time to ensure the fund has a manageable level of monies.

Q8. Can I increase the size of the fund?

We cannot offer any additional funding or “top ups” to increase the size of the fund. 

Q9. What if I can’t identify suitable projects?

We will provide support and guidance to help clients identify projects that will be suitable under the new criteria; however, should clients still not be able to identify projects that meet the new criteria, they will be required to give notice on their funds as per the current arrangements.

Q10. Must our projects complete by March 2025?

Yes, all projects must be complete by March 2025.

Q11. Will the minimum spend requirement by the same?

No, as part of the plan we would like to see how the fund will be used over the next three years. If you have a large multiple technology project where the project requires a significant amount of planning time it will be possible to forego spend in the first year until funds have accumulated. The priority is to use the fund effectively to maximise the available funding over the lifetime of the funds; the purpose of the plan is to inform how this will be achieved. 

Q12. How can the Recycling Fund work with the Low Carbon Skills Fund (LCSF)?

Having a robust heat decarbonisation plan will put organisations in a strong position to take the next steps in decarbonising. It will allow clients to think more strategically in terms of using the available funding and where applicable, can be used to support the implementation of single technology electricity reduction measures. 

Q13. Is there somewhere on SERS where I can attach a heat decarbonisation plan or other supporting information?

You can attach supporting information to the project record on SERS.  

Q14. How can I calculate how much available spend I will have over the next three years? 

You can calculate the available spend on SERS by following these steps here

Q15. If funding isn’t available for 100% of the project costs, can this be combined with other sources of funding?

Yes, you can use other sources of funding (such as capital, Public Works Loan Board etc) to make a project compliant or support a larger project. Where additional funding will be required, please state this in the three-year plan. 

Q16. Will an updated compliance tool be shared with the new criteria? 

Please find an updated compliance tool here.

This compliance tool has been updated with the criteria for England which will only come into effect from April 2022 onwards but is available now to assist with the development of the three-year plan. 

Q17. Can you clarify how the direct/indirect carbon will be calculated?

Both direct and indirect carbon savings are calculated using the government published carbon conversion factors. The carbon factors are updated on our compliance tool each year. Thus the indirect carbon savings will be = kWh savings * CF(tnCO2e/kWh).

(Note this means that the indirect carbon is not calculated accounting for grid decarbonisation using Greenbook factors which is the method used for the Public Sector Decarbonisation schemes)

Factors can be found here: Government conversion factors for company reporting of greenhouse gas emissions - GOV.UK (www.gov.uk)

Q18. Can you provide more information about what is sufficient justification for the installation of electricity reduction measures?

If you have a carbon management plan or a heat decarbonisation plan, you can attach this as a supporting document on SERS. To accompany this, we would like to see commentary about how the project fits in within a wider programme of works which will support the future decarbonisation of that building/site. You must be able to demonstrate a clear strategy and a timeline. 

Q19. Will the three-year budget figure change each year depending on repayments between 2022-25? 

Yes, the amount of funding available will change as and when projects are committed. Please see our guide for calculating forecast spend. 

Q20. If grant funding or other funding opportunities become available, do we still have to proceed with the projects outlined in the plan?   

The plan is not set in stone. However, if there are significant changes, we ask that you keep Salix updated and you may be required to provide a revised plan.  

Q21. If cost savings are required for the plan, are we able to account for future price of electricity / gas? 

In the Salix compliance tool you can include a forecast price for fuel. Guidance on calculating forecast energy can be found on the “guidance notes” tab on the compliance tool. 

Q22. If I install a heat decarbonisation measure in one site and bundle it with electricity saving measures across other sites, do I still need to justify their inclusion in the three-year plan?

Yes, for electrical reduction measures in sites not combined with a heat decarbonisation measure you will need to provide justification in the three-year plan. 

Q23. Can we rollover the unspent funds from this year's commitment into the new phase? 

There is the option to rollover funds, foregoing spend in the first year until funds have accumulated in order to support a larger project. The priority is to use the fund effectively to maximise the available funding over the lifetime of the funds and the purpose of the plan is to inform how this will be achieved. If you wish to do this, please first discuss this with your Salix Relationship Manager.