The Benefits of Energy Efficiency Financing to your business

For more information please call Remeha Commercial Sales on 0118 974 3065 or email sales@remeha.co.uk

Energy Efficiency Financing makes good business sense.

Here are some of the key benefits:

  • Convenient and fast. You can arrange your Energy Efficiency Financing through Remeha Commercial. We can then liaise with Siemens Financial Services to take care of your application and the paperwork for you. It’s that simple.
  • Affordable – right now! The Energy Efficiency Financing scheme is designed so that the finance payments made to Siemens Financial Services are offset against the
    anticipated energy savings, which means the equipment should pay for itself. So you can afford to install the energy efficient equipment you need straight away. And once you’ve made all the payments, you should continue to make savings year on year.
  • Flexible. Energy Efficiency Financing is designed so that payments match or exceed anticipated energy savings. Affordable payments are tailored to suit your circumstances and can be arranged with Siemens Financial Services over terms from 1 to 7 years, or in some cases even longer.
  • Easier budgeting. Energy Efficiency Financing payments are fixed; payments are not subject to fluctuations in interest rates, which means easier budgeting.
  • Maintains existing credit lines. As the scheme is specially arranged through Carbon Trust Implementation Services and Siemens Financial Services, any existing credit lines that you may have with your bank remain intact, to be used by you in the future if necessary.
  • Tax efficient. Energy Efficiency Financing is designed to be tax efficient. Finance payments may be offset against tax, depending on individual circumstances.
  • Future proofed. The flexibility of the scheme allows the finance solution to change with your business requirements, therefore the original installation may be upgraded in the future.
  • Conserves working capital. Energy Efficiency Financing gives you the flexibility to conserve your existing working capital for other business projects.

Example 1: Finance used to enable implementation of more efficient Condensing Boilers.

In this case, an installed boiler with poor seasonal efficiency of 70% is replaced with a condensing boiler of 107kW output (model: Quinta 115 Pro), with a seasonal efficiency of 88%.

The new boiler costs £3,650; the finance scheme allows for an additional 30% of the equipment cost to be borrowed to help pay for installation. The total amount loaned is £4,745. Over a 4 year period, finance costs amount to £1,261.

Repayments are: for year 1 £1,572, years 2, 3 and 4 £1,478.

With annual fuel cost savings of £1,878, if finance payments on the boiler and installation contribution are considered then there is a financial benefit to the customer of, in year 1 £306, in years 2, 3 & 4 £400 and from year 5 onwards, for the rest of the lifetime of the equipment, £1,878 per annum. See chart below…

Example 1: Chart Below

The new installation would reduce the total carbon released into the atmosphere by a total of 12.15 Tonnes per annum, which equates to a 25% reduction.

The calculations are based on a gas cost of 2.67p per kWh and with a demand for heat equivalent to 2,100 hours full boiler output per year.

Actual use of equipment will be a factor in the actual savings made. Rate of interest in this example, for this size loan, is 9% IRR. Rate of interest and prices quoted are correct at time of printing, but may subsequently vary. Remeha Commercial would be pleased to advise current loan rates of interest and offer full quotations for equipment on request. Please contact Sales on 0118 974 3066 for more information.

For Example 1: Chart Showing Condensing Boiler Related Finance and Cash Flow Information

For Example 1: Chart Showing Condensing Boiler Related Finance and Cash Flow Information
* All financial calculations are examples only, fuel costs may vary with actual usage and price variation.

Example 2: Finance used to smooth cash flow for a Biomass Boiler installation.

In this case, the installed 29kW oil boiler is replaced with an 85kW Biomass Boiler that serves the existing building and a new building built adjacent to it.

The new biomass boiler costs £22,590. Other installation costs such as fuel store construction, boiler assembly and commissioning are excluded. Over a 7 year period, finance costs amount to £8,613.

Repayments are: for year 1 £4,539 and for years 2 to 7 £4,444.

When considering fuel savings and RHI income, less the equipment finance payments, this scheme has an annual surplus of £298 in year 1, rising to £393 per year for years 2 to 7 and then £4,837 per year for the rest of the life of the equipment. See chart below…

Example 2: Chart Below

The new installation reduces the total fossil fuel based carbon released into the atmosphere by a total of 9.03 Tonnes per annum, which equates to an 89% reduction.

The calculations are based on an existing oil consumption of 3,900 litres per annum at 58p/kWh. The installation qualifies for RHI (Renewable Heat Incentive) payments at Tier 1 of 7.9p / kW. The estimated heat use of the new system is 58,500k/Whs. Calculations are based on wood chips supplied at a cost of 3.5p/kWh (in the actual installation, cheaper, waste wood chips are available).

Actual use of equipment will be a factor in the actual savings made. Rate of interest in this example, for this size loan, is 9% IRR. Rate of interest and prices quoted are correct at time of printing, but may subsequently vary. Remeha Commercial would be pleased to advise current loan rates of interest and offer full quotations for equipment on request. Please contact Sales on 0118 974 3066 for more information.

For Example 2: Chart Showing Biomass Equipment Related Finance and Cash Flow Information

For Example 2: Chart Showing Biomass Equipment Related Finance and Cash Flow Information
* All financial calculations are examples only, fuel costs may vary with actual usage and price variation.