The Green Investment Group, formerly known as the Green Investment Bank, before it was sold to Australia’s Macquarie Bank, has launched an important new funding service to help businesses. Madeleine Cuff explains in an article on the Business Green website.
Green Investment Group launches ‘pay-as-you save’ green energy offer
New Energy Solutions service will provide upfront funding for businesses looking to install energy efficiency and renewables technology
The Green Investment Group (GIG) yesterday launched a new funding service to help businesses cut emissions and become more energy efficient at no upfront cost.
The Energy Solutions service will give businesses advice and finance to install green technologies such as solar panels, LED lighting and electric vehicle charging points, paid for under a ‘pay-as-you-save’ Energy Services Agreement.
GIG, formerly the state-owned Green Investment Bank until it was sold to Australian bank Macquarie earlier this year, said the service will be aimed at public and private organisations to help accelerate the roll-out of green technologies across UK industry.
“Rising costs, technological advances and regulatory pressures are changing the way organisations think about their own energy productivity,” GIG’s head of distributed energy and onshore renewables Bill Rogers said in a statement. “By utilising the latest distributed energy and energy efficiency technologies, organisations can generate, store, use and actively manage energy more efficiently.”
“However, organisations are often faced with a choice between investing in new energy infrastructure or channelling available capital into core operations,” he continued. “Energy Solutions will design, fund and deliver an integrated programme of energy upgrades, assuming the key risks and expenditure involved. This will provide our clients with greater certainty and control over energy costs and help to increase business resilience and lower emissions without constraining their balance sheets.”
The offer is reminiscent of the government’s Green Deal, which offered businesses the opportunity to invest in energy efficiency measures at no upfront cost. Instead the cost of measures was repaid through the energy bills for the property. However, the offer was closed to commercial buildings in 2012 after poor uptake.
But improving the efficiency of commercial buildings is crucial if the government is to meet its legally binding emissions targets over the next decade.
In the Clean Growth Strategy, released last month, the government set out a target of improving energy efficiency in UK business and industry by 20 per cent by 2030.
A recent Policy Exchange report, which was backed by the GIG, found that access to capital is a major barrier for business investment in energy efficiency technologies.