SMARTech energy offer businesses an attractive finance scheme to invest in sustainable energy efficient projects.

SMARTech energy’s Green Finance Scheme is designed to help businesses and organisations gain access to flexible financing initiatives for energy efficiency drives.  The scheme takes advantage of the energy cost savings delivered by financed projects to offset the finance repayments – often offering cash positive terms which can actually improve a company’s cash position.

Overview of the benefits of the finance scheme

Corsham-based SMARTech energy recently undertook an extensive energy management survey at one of Europe’s leading manufacturers of precision pressings and stampings.  This identified a host of savings and solutions.  The organisation faces substantial annual energy bills and wanted to address this – together with identifying additional opportunities to improve efficiency and to support its drive towards a low carbon and sustainable future.

Cost Efficient Energy Management and Reduction

SMARTech energy’s consultancy team carried out a series of in-depth energy audits and due diligence across the client’s site.  They were able to report that the main focus would include a new lighting strategy, the implementation of voltage optimisation solutions and power factor correction opportunities.

SMARTech energy quoted this project in the region of £180,000 – recommending a finance option which would see savings offset repayments to produce a cash positive position over the term of the finance (see figures below):

The following example is based on real figures:

  • Project costs to be financed – £182,263
  • Savings from energy use reduction per month – £7,965
  • Finance repayments over 36 months – £5,560/month – cash positive £2,405/month
  • Finance repayments over 60 months – £3,570/month – cash positive £4,395/month

The following table shows a typical Green Finance agreement timeline:

Day 1 – Finance agreement starts. Nothing for the customer to pay until the whole project is installed and finalised – which is estimated at day 90.
Within the first 90 days – the customer can claim VAT back from the SMARTech energy Green Finance agreement.
Day 120 – The VAT invoice is payable.
Customer is cash positive and gains from the savings of the energy efficiency project.
First repayment starts.

In Year 1, our client can also claim back 19% of the project cost against corporation tax through the Government’s Annual Investment Allowance Scheme (approximately £34,000 in the above example).  Add in the energy savings made over a 36-month repayment period and the client’s position is cash positive by more than £120,580.  The client can also highlight savings on their carbon emissions of more than 190 Tonnes of CO2 per annum.

Additionally, SMARTech energy worked alongside its customer to identify grants of more than £12,250 for use on either voltage optimisation or motor optimisation.

Finance solutions push energy efficient projects forward

MD of SMARTech energy, Stuart Pearce says “Investment in energy efficient technologies is a huge expense, but through funding schemes such as SMARTech energy’s Green Finance scheme, finances can be used in the most efficient way to move projects forward”.