Energy Efficiency Spend to Save Fund

Introduction

An internal Energy Efficiency Spend to Save Fund has been set up within the County Council. 

This is a ring-fenced, interest-free loan available to Council Establishments for the specific purpose of funding the capital cost of energy saving measures. 

The loan is repaid from the anticipated financial savings your school will make from the reduction in energy bills.  A fixed payback amount and period will be agreed at the outset, based on a comprehensive payback analysis. This will ensure the annual cost is neutral to school/establishment budget.  Once the loan is repaid the school/establishment will keep the on-going savings. For example, installing cavity wall insulation normally pays for itself within five years and will continue to deliver financial and carbon savings to your school/establishment for twenty or more years.

Schools' and other Council Establishments' carbon emissions are included within the Local Authority’s overall carbon footprint, and we are required to include and report on them for several national indicators along with the Carbon Reduction Commitment. 

The Spend to Save Fund forms a crucial part of our ongoing commitment to reduce Carbon Emissions and the associated cost of purchasing Carbon Allowances. The Local Authority is also able to provide the necessary skills and resources to implement energy efficiency improvements within school buildings.

Possible projects funded

If a project is purely for the purpose of reducing energy consumption e.g. roof insulation, then no additional funding is required from your school/establishment budget (provided the payback period is within 10 years); projects will simply be repaid from the savings made from your energy bills. If a project also includes an element of improvement or betterment, such as emergency lighting, then additional funding will need to be agreed.

Energy saving projects can range from lighting upgrades and controls through to draught proofing and insulation, and including solar panels providing the payback does not exceed ten years.

When lighting upgrades in schools are planned, depending on the extent of work required you may be asked to provide additional money from your devolved capital budget for improvements such as emergency lighting or lighting controls.

We also have to take into consideration future plans for the school buildings/council establishments and would not fund energy efficiency improvements if, for instance, the building was likely to change hands or be demolished before the project had fully paid for itself and delivered value.

Smaller projects such as cavity wall and loft insulation can now also be funded via the Spend to Save mechanism. Projects such as solar panels may also be funded for energy saving measures in new build or major refurbishment schemes, when funding is not available within the original budget.

What to do next

Firstly we need an expression of interest, preferably by e-mail.  We will initially evaluate the proposal, and if it meets the payback criteria and is technically feasible, it will be allocated to a Project Officer who will contact you, discuss your requirements and draw up a formal Feasibility Study defining the costs.  You will be asked to approve the proposal, and commit to repaying the capital cost over an agreed period of time, and this commitment will require the signature of the appropriate budget holder on a Spend to Save Application Form. The project will then be implemented, and the equipment installed and commissioned.

We are currently drawing up a list of identified potential projects and are inviting bids for funding.  If you are interested, please contact the Energy Team at Dfyles@worcestershire.gov.uk  The first round of applications were received before the closing date of Friday 22 October, but further rounds of funding will become available once interest in the scheme has been established.  Projects will be prioritised, based on their potential to reduce carbon dioxide emissions as well as their cost-effectiveness in saving energy.

 Head Teachers and Governors, from schools who would like to find out more about the Spend-to-Save fund and to learn more about the government's Carbon Reduction Commitment Energy Efficiency Scheme and the opportunities for energy and cost saving,  can view the Energy Hierarchy and Spend Save Power Point Presentation  (690KB) that was given at a joint conference hosted by Education for Sustainable Development and Property Services on 19 October 2010. 

Spend to Save Application Forms

Please use the application form relevant to your building type and send to nhughes@worcestershire.gov.uk.

Local Authourity Schools

Spend to Save Application Form LA Schools  (17KB)

Academy Schools

Spend to Save Application Form Academy Schools  (520KB)

All other Non school buildings

Spend to Save Application Form Non School Buildings  (14KB)