10 February 2016
A reflection on the success of the Salix/HEFCE Revolving Green Fund 1 (RGF1), which demonstrates that Government funding has led to projects that are estimated to save Universities more than £210 million in energy costs
In 2008 HEFCE and Salix formed a partnership to provide higher education institutions in England with their own ring fenced funds for investment in energy efficiency projects. The partners established a 50:50 investment of £20 million, alongside an additional £5 million contributed by a strong client base of 57 Universities spread throughout the country. 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.
Since 2008, the Universities have benefitted from the installation of over 2,600 projects and the original £25 million of investment has now enabled over £50 million worth of energy saving projects to go ahead.
The Revolving Green Fund 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.
Keele University used their original £250,000 Revolving Green Fund to their advantage by recycling the fund almost four times. The fund was set up using £100,000 each from Salix and HEFCE as well as a contribution of £50,000 from the University. Annual savings on energy bills from the projects implemented using the fund are estimated to exceed £540,000 annually.
Salix finance has interest-free funding available for Universities on a continual basis and can offer support on delivering their carbon management plans. For more information please visit our loans page.
A copy of the infographic showcasing the success of the Revolving Green Fund can be found here.
For further information, please contact: Alannah Powell, PR & Marketing Executive, Salix Finance
T: 020 3102 6902
Notes to Editors:
The RGF1 programme is jointly financed by Government funded organisation, Salix Finance, and the Higher Education Funding Council for England (HEFCE) as interest-free loans, and the projects it enables are vital for reducing energy consumption and meeting national energy efficiency targets. The financial savings that these projects contribute to the public sector help to protect front line services and reduce the burden on the public purse.