interest free loans for central heating, Scotland

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Interest Free Loans - Private and Public Sector

If you are considering replacing your existing heating equipment with new, more efficient equipment you may be eligible for an interest free loan from the Carbon Trust, an independent not for profit company set up by the Government.

The Carbon Trust 0% business loans are unsecured and interest free, with no arrangement fees and a straightforward application process. Loans can be repaid over a period of up to four years and as the scheme is designed for energy savings to cover repayments, the loan will effectively pay for itself. With an interest free loan the monthly savings in energy costs will often exceed the loan repayment - especially when you take increasing utility prices into account.

Any equipment that saves enough energy can be considered. Examples are the installation of replacement boilers or larger-scale refurbishments of steam generating plant.

Schools, hospitals, local authorities, universities and central government departments will be able to save money and reduce their carbon emissions by taking up the new loans, which the Carbon Trust has made available through Salix Finance.

These loans are additional to funding available through the existing Salix Finance scheme and are available for around 80 different energy efficiency technologies, including building insulation, boiler upgrades and improved cooling systems.

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Enhanced Capital Allowances

Give yourself a break – investing in energy-saving equipment does more than just save your business money. It’s often more tax efficient.

Enhanced Capital Allowances (ECAs) are a straightforward way for your business to improve its cash flow through accelerated tax relief. The ECA scheme for energy-saving technologies encourages businesses to invest in energy-saving plant or machinery specified on the Energy Technology List (ETL) which is managed by the Carbon Trust on behalf of Government.

The ECA scheme provides businesses with 100% first year tax relief on their qualifying capital expenditure. The ETL specifies the energy-savng technologies that are included in the ECA scheme. The scheme allows businesses to write off the whole cost of the equipment, including installation costs, against taxable profits in the year of purchase. This can provide a cash flow boost and an incentive to invest in energy-saving equipment which normally carries a price premium when compared to less efficient alternatives.