Measures that result in no carbon savings, or result in carbon increases, are ineligible for funding.
If the technology you wish to install has a payback of more than 20 years, it will not be eligible for funding. Similarly, if the payback period appears as a negative number, then the proposed measure would result in a cost increase when compared to the current measure and so it would be ineligible for funding.
If an organisation applies for a package of linked measures which have a payback of less than 20 years (but where a measure(s) has a payback > 20 years) then it will be eligible. For example, an organisation could apply for funding to install insulation with a 25-year payback and a new heating system with a 6-year payback, where the combined investment has a payback of less than 20 years.
Linked measures with a combined payback period of less than 20 years will receive the full amount of funding for all measures. Linked measures should be dependent on each other, for example heating and insulation or lighting and lighting controls. Oil and LPG heating systems are ineligible for funding. The Scottish Government has ambitious climate change targets and wants to reduce carbon emissions from Scottish businesses. Oil and LPG boilers produce more carbon emissions than alternative heating systems, so the Scottish Government grants and interest free loans can no longer be used for those heating systems.
In addition, applications from businesses looking to sell heat or energy to third parties – other businesses or domestic properties – would not be eligible for funding. The SME Loan was not set up to cover this type of activity and as such the administrator has no mechanisms in place to confirm that the proposed energy supplier is suitably trained or experienced to ensure a secure and reasonably priced service. Applicants with these type of projects in mind should consider the current District Heating Loan available from Energy Saving Trust.
The Scottish Government’s SME Loan Scheme is not accepting new applications for solar PV projects.