Salix enables public sector organisations across England, Scotland and Wales to take a lead in tackling climate change by increasing their energy efficiency. Salix provides 100% interest-free capital for the public sector to reduce their energy costs by enabling the installation of modern, energy-efficient technologies and replacing dated inefficient technologies.
Energy-efficient technology cuts carbon emissions and reduces energy bills. However, upfront capital is a common barrier for public sector organisations seeking solutions that cut their energy consumption.
Salix is a non-departmental public body, owned wholly by Government. Salix is funded by Department for Business, Energy and Industrial Strategy, the Department for Education, the Welsh Government and the Scottish Government.
As of March 2020, Salix has funded over 18,700 projects with over 3,100 public sector bodies, valued at £971 million. This is estimated to save the public sector over £203 million and reduce public sector carbon dioxide emissions by 867,000 tonnes annually.
There are two types of Salix funding programmes available. The first is the Salix Energy Efficient Loans Scheme - as an example: a school borrows £10,000 to put in new lighting and a new boiler which will save the school £2,000 per annum from reduced gas and electricity usage. For the first five years, these savings are used to pay back the interest-free loan. Once the loan is repaid, the continued savings enable the school to use the finance for other budgets, such as the purchase of equipment.
The second programme available is the Recycling Fund, which is a ring-fenced fund managed by the public sector organisation, with money provided by the organisation and match funded by Salix. The project loan is repaid into the fund from the financial savings delivered by the projects – this allows the fund to be continually used for energy efficiency projects, hence the term ‘Recycling Fund’. At the same time, the organisation continues to benefit from the savings that accumulate once the project has been fully repaid.
Salix also facilitates knowledge sharing through quarterly regional meetings, technical workshops and project case studies. There is extensive knowledge and enthusiasm for energy efficiency within the public sector, and enabling the sharing of this knowledge between organisations helps support our clients in delivering long term, cost-effective savings.
Over 100 technology types are supported by the funding programmes, some of which include building energy management systems, cavity wall insulation, combined heat and power systems, evaporative cooling, heat recovery systems, LED lighting, lighting controls, loft insulation, pipework insulation, server virtualisation and variable speed drives.
Salix funding includes all public sector organisations and across their whole estates, including schools, higher and further educational institutions, emergency services, hospitals, leisure centres, local authorities, the NHS. There has been a focus to commit more resources to increase energy efficiency and driving down energy costs, which Salix aim to address and assist the public sector in doing.