The partners established a 50:50 investment of £20m, alongside an additional £5m 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.
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. For more information visit https://www.salixfinance.co.uk/loans/