Energy Efficiency Financing Scheme

The Energy Efficiency Financing Scheme was launched by Carbon Trust and Siemens Financial Services (as part of Siemens plc) for UK businesses investing in energy-efficiency equipment.

Key partners

• Carbon Trust – non-profit company supporting business and public sector in cutting carbon emissions.
• Siemens Financial Services (UK) – the financing arm of Siemens plc providing asset-finance solutions for the scheme.

Launch date and headline commitment

• The scheme was announced on 1 March 2011.
• It committed £550 million of finance to UK businesses for low-carbon/energy-efficiency equipment over a three-year roll-out.
• The scheme was designed so that the monthly finance payments would be offset by the expected energy savings of the new equipment.

Scheme objectives

• Enable UK businesses to invest in cost-effective energy-efficient equipment or other low-carbon technologies (e.g., efficient lighting, biomass heating) by improving access to affordable finance.
• Reduce carbon emissions and boost green growth in the UK economy via increased uptake of energy-efficiency investments.
• Leverage the expertise of the Carbon Trust to assess energy/ cost/ carbon savings and the financial structuring capabilities of Siemens Financial Services.

Eligibility / scope

• Available to “all types of organisations”: businesses, public-sector bodies, SMEs and larger corporates.
• Finance from relatively modest amounts (from approximately £1,000 upwards) for equipment purchases.
• Typical project term: from 1 to 7 years (or in some cases longer) with payments structured to align with the anticipated energy-savings.
• Equipment/technologies eligible: building or industrial technologies (e.g., pipe insulation, air-conditioning, lighting, compressed air, refrigeration, specialist production equipment).
• A credit assessment applies (via Siemens Financial Services) and an energy-savings assessment is done by Carbon Trust Implementation Services to validate the projected savings.

Key benefits for businesses

• Payments aligned with savings: structured such that finance payments are offset by energy-cost savings, minimising net cost to the business.
• Fixed payments: the scheme offers fixed-payment terms (not subject to variable interest rate fluctuations) which aids budgeting.
• Maintains existing credit lines: because this scheme is structured separately, businesses can preserve bank credit lines for other uses.
• Tax efficiency: finance payments may be tax deductible depending on the business’s circumstances.
• Improves asset/technology: allows businesses to invest in newer, more energy-efficient equipment, reduce energy bills, and improve carbon performance.

Key considerations / limitations

• The scheme still subject to credit approval: trading history (e.g., incorporated business trading >12 months, non-incorporated >36 months) and credit-worthiness matter.
• Energy-savings projections must be validated: the Carbon Trust carries out assessments to ensure that the equipment investment will meet savings targets that justify the finance payments.
• The scheme was announced in 2011 and the specific availability and terms may have changed; businesses should verify current status and whether equivalent finance programmes are available today.

Business relevance for a UK audience

• For UK businesses (SMEs and larger), this scheme represented a means to overcome the capital barrier to investing in energy-efficient equipment by aligning repayments with savings.
• It offered a route to reduce operational energy cost, improve sustainability credentials, and potentially meet corporate or regulatory carbon/energy-efficiency targets.
• From a risk/return perspective: the scheme reduces upfront capital risk by structuring finance against anticipated energy-cost savings, improving the business case for energy efficiency investments.
• For procurement/energy-manager teams: the scheme underscores the importance of preparing a robust business-case for energy-efficiency investments — including accurate savings modelling, lifecycle cost assessment, and financing strategy.

Summary status

The Carbon Trust–Siemens Energy Efficiency Financing scheme was launched in 2011, with a £550 m funding commitment, to accelerate energy-efficient investment across UK businesses. It offered flexible finance aligned with savings, enabling businesses to upgrade plant and equipment with minimal net cost. For businesses seeking to invest in energy-efficiency, it serves as a reference model of how finance and technical assessment can be integrated to deliver both cost savings and carbon reduction. Businesses today should check the current availability of similar schemes (since the original scheme was announced some years ago) and ensure any project still meets eligibility, savings validation, and credit criteria.