finance to cut costs and grow your business In association with - PowerPoint PPT Presentation

Breakfast briefing How to access available finance to cut costs and grow your business In association with Scotland’s 2020 Climate Group k

Who we are A programme from Free, specialist advice Zero Waste Scotland On-site support Funded by Scottish Access to suppliers Government & ERDF Access finance Operational since April 2013 We are here to help you cut your energy, water and raw material costs k

Helping you overcome the barriers to resource efficiency k

Agenda 08:55 Welcome 09:00 David Thomson, Food and Drink Federation Scotland 09:15 The Business Benefits of Being Green 09:30 Case study: Simon Jones, Edinburgh Zoo 09:45 Overview of loans and grants 10:00 Resource Efficient Scotland interest Free Loan 10:15 Finish/Networking k

Live Tweeting Follow us @resourcescot k

David Thomson, CEO Food and Drink Federation Scotland

beyond- green.com Resource Efficiency – Stronger Business Business Breakfast Briefing Paul Adderley

Core elements of business strategy Stress tests for – Energy price volatility Build – Supply of raw materials Reputation – Tough Waste legislation – Cost of finance Managing Risks Opportunities for – Add value to customers Profitability – New services & certainty – Access to finance

Focus of Resource Efficiency Unit Quantity X = Cost to Business cost (volume) Process Driven Savings Business Benefits locked in Benefits (e.g efficient boiler) Less ForX Exposure Harder Investment Decisions

Resource Efficiency in the P&L Resource Efficiency Benefits Sales Competitive Advantage, Stronger Reputation, new business, marketing benefits Less material waste, & energy use per product. Cost of Sales Increased margins, reduced volatility , higher Gross Profit productivity Lower energy use from efficiency, renewable Operational Costs Low interest loans / grant funding Interest Paid Enhance Capital Allowances for Energy Saving Tax Charge Technology Greater Returns to Business owners Net Profit

building the case 3 Indicative Payback Periods Renewable COLLABORAT E WITH Energy SUPPLIERS - Monitoring Use < 1yr 2 - Efficiency 2-4 yrs RES Process & IMPARTIAL plant SUPPORT efficiency - Production Process 2- 5yrs 1 Avoid Costs DATA - Renewables 5-8 yrs. DRIVEN & Emissions DECISIONS

Case Study Scottish Bakery • Data Driven Decisions • Upgrade Compressors - £7k (30% saving) • LED Lighting- £6k annual saving • Material Savings 7.5K • Funded by SME Loan

Case Study Institute of Occupational Medicine Half Hourly Electricity Data

Case Study Institute of Occupational Medicine - 70kW solar PV system - Financial benefit: £6.5k pa - 95% on site use - Performance as predicted - Payback 6 years - Annual Carbon Saving 28tCO 2 e 14

Views from FD’s “Over the last three years “The high quality we have utilised the evidence from the technical support provide technical assessment by Resource Efficient helped IOM make an informed decision… We Scotland to help us independently access are now benefiting from resource efficiency lower electricity costs of around £9,000 a year.” savings across our businesses” Chris Owens, Director of J.D. Appleton, Finance Central Services & Director, Paterson Arran Finance, Institute of Limited Occupational Medicine.

Key messages • Root cause of resource demand • Data driven decisions • Balanced investment with realistic returns • Utilise free business support in Scotland » www.resourceefficientscotland.com » Helpline 0808 808 2268

thank you, any questions ? pauladderley@beyond-green.com DD 0131 472 4708/ 07917372573

Edinburgh Zoo k

Overview Loans and grants k

Barriers to implementing resource efficiency projects k

Types of finance • Government supported finance – Grants – Loans – Tax incentives – Fiscal incentives • Commercial finance – Asset finance – Debtor finance k

Zero Waste Scotland Circular Waste Economy Implementation Investment Fund Fund Interest Free Loan k

Government-supported loan schemes Transport Scotland Low Carbon Transport Loan k

Regional and national loan schemes East of West of Scotland Scotland Loan Investment Fund Fund Highland Scottish Loan Opportunity Fund Fund k

Other Government-supported schemes Enhanced Low Green Capital Carbon Business Allowances Skills Fund Fund k

Resource Efficient Scotland Interest Free Loan k

An opportunity for you to… Install a new Upgrade to energy Upgrade to energy biomass boiler efficient lighting efficient heating to provide to lower energy systems to lower low-cost heat bills heating bills Insulate premises Install solar photovoltaic Use voltage ...and many to reduce to generate cheap, green optimisation more resource heating costs k electricity from sunlight to reduce efficiency energy costs measures

Highland Farm Cottages Replaced the existing LPG system with a biomass boiler, giving savings of £23,806 per year and reducing carbon emissions by 39.5 tonnes CO2. Installation of Solar PV . Insert suitable “…made the difference between us wanting image here to put in a new biomass system and us actually having it installed.” Kenneth McKenzie, Owner k

Houston Bottling & Co-pack Upgraded the lighting in its warehouses to high efficiency LEDs - cutting more than £16,000 a year from its energy bill. Insert suitable image here “Resource Efficient Scotland supported us at every step of the way in upgrading our lighting system, from planning and funding the project through to installation. With this help, a relatively small change to our building is translating to a big saving in our energy usage.” Duncan Elder , Houston Bottling & Co-pack k

Pentland Precision Engineering Installation of high-efficiency light emitting diodes (LEDs) and controls in offices, workshop and factory. Saving almost £3,000 a year . “Resource Efficient Scotland made it easy to justify upgrading our lighting system to LED lamps, which has resulted in a significant saving on our energy bill.” Robert Mcartney, Commercial Director Pentland Precision Engineering k

Goldenacre Mini Market Upgrades to lighting and refrigeration, resulting in a reduction of annual electricity savings by 30% , worth almost £1,800 a year . I am absolutely delighted with the new double- glazed refrigeration cabinets and the LED lighting…The support from Resource Efficient Scotland helped me to identify and fund the changes to my shop and I am really happy with the results.” Aleem Farooqi, Owner , Goldenacre Mini Market k

Resource Efficient Scotland SME loan Neil Leckie Energy Saving Trust

Introduction • Funded by the Scottish Government • The loan has been operating since 2007 • Some changes but aim of the programme has stayed the same - to support businesses in saving energy, carbon and money through improved energy, material and water efficiency • Resource Efficient Scotland offer impartial guidance and technical support to businesses • This includes providing a free energy audit detailing the key actions to unlock identified energy, water and raw material cost savings. The report can then be used to support a loan application • Energy Saving Trust are responsible for the loan administration – managing the budget, assessing applications, offering funding, making payments and collecting repayments 33

Eligibility criteria Below are some of the key eligibility criteria to be aware of. Your business must: • Be based in Scotland • Operate as a sole trader, partnership, limited company, charity or not for profit • Meet the European Commission definition of an SME (fewer than 250 employees, turnover not exceeding €50 million and/or a balance sheet not exceeding €43 million) • Not be in breach of European Commission De Minimis State aid funding rules • Have been trading for at least 12 months • Pass relevant credit and affordability checks 34

Loan Information • You can apply for up to £100,000 • A wide range of measures are available (examples on next slide) • Work being funded must have a clear carbon and financial saving • Can only fund measures that are recommended on the qualifying report provided by Resource Efficient Scotland • Decision or update within 10 working days of EST receiving application 35

Available measures Funding is available for a wide variety of works. Some popular examples are below: Energy Efficiency Renewable Waste/Water/Other Boiler (Gas, LPG or oil) Biomass boiler Commercial refrigeration and freezer units Insulation Heat pumps Commercial cleaning equipment Double glazing Solar thermal Composting systems Heating and cooling Solar PV Water recycling systems systems LED lighting Wind turbine Voltage optimisation A full list can be found on the Resource Efficient Scotland website but we are flexible 36

Benefits of the loan • Unsecured • Interest free for many applicants • Repay over a maximum of 8 years if applying for a renewable technology (usually higher value loans) • Funding available for a wide variety of work (see previous slide) • No processing, arrangement or administrative fees • Greener business • Save money 37