With the recent hot debate on how the government’s green policy will look going forward with many analysts predicted that there could be a large push towards shale gas as opposed to solar power projects due to costing issues, it could possibly be that the private sector looks to fill in the investment gap. The message coming out of the government is that they would welcome such types of co-operation between large firms investing in Solar or wind especially as they look to make the renewable landscape more competitive in the coming years.
Could The RBS Renewable Power Funding Be A Viable Alternative To Government Funding?
For the small businesses RBS definitely believe they can be. While there has been no launch for businesses of the much scrutinized Green Deal due to the inability of the government to firstly have the domestic scheme up and running RBS believes they can fill the gap with their large green investment plan. Recognizing that the UK is in the midst of substantial energy pricing constraints they believe their funding option is a potential lifeline for businesses battling substantial energy costs.
Renewable Investment Loans Available From £25,000 to £500,000
Virtually any company or organization can apply for funding if they have carried out an energy audited which has pinpointed key areas where there efficiency can improve. This can be from lighting, insulation, boilers and more. The company says the renewable funding is open to any SME and not just their own customers and it is hoped that this will be a viable long term funding option given the so far promising trial.
The Scheme Is Saving Businesses On Average Over 30% In Energy Bill Savings
From the initial survey service which conducts the energy audit as well as monitor various other measures such as finding tariffs relevant to the business and ensuring they have the correct infrastructure in place from staffing to energy planning. Once completed the RBS states that the average proposal is coming in at under 90K. Although the financial institute has recently been accused of hindering businesses instead of helping them this they believe can only be seen as a positive to reduce bills while improving a customers long term profits.
Could This Be A Renewable Incentive For Other Financial Institutes To Follow?
Time and the uptake rate will tell if other financial organizations see this as a way in which they to can offer finance to their smaller business customers. While many other organizations do have their own sustainable scheme i.e. Barclays offer a green funding loan to domestic home owners the government will be watching closely to see if this is a scheme worth supporting going forward. However they would need to be wary given that they have a scheme of their own that they drastically need to re-structure. Given that the recent Green deal figures have left a bitter taste in many newly accredited Surveyors mouths. This is given the recent study that found that over 95% of Green Deal proposal were rejected as being not good value by the home owner.
Only 458 Green Deal Proposals Have Been Accepted So Far
With this in mind and with many other financial organizations actively offering not just specified renewable power loans but normal loans which also undercut the government offering the future looks decidedly uneasy for the government scheme going forward. Especially when you consider the domestic interest in such areas like solar panels has increased in recent years you can expect specified offerings from financial institutes to rise.
Some previous related articles of interest:
Why the deployment of next generation panels continues to be put back
Could ‘Eco Towns’ be the future of domestic housing construction
What the future holds for community energy funding