The Wales Funding Programme allows public sector bodies to apply for interest-free loans for up to one hundred percent of the costs of energy-saving or renewable energy projects.
Funding
We’re pleased to inform you that applications – as of 16 July 2024 – are now being accepted for the Wales Funding Programme Salix Energy Efficiency Loan Scheme – supporting the public sector with meeting its ambition to be Net Zero by 2030.
If you intend to apply for funding this financial year, please ensure you submit applications in full by Friday 7 November 2025.
The scheme, funded by Welsh Government, is targeted at public sector organisations in Wales including local authorities, schools, universities, colleges, and emergency services.
It provides loan funding for energy efficiency and decarbonisation projects for public sector bodies registered in Wales.
A fixed interest rate at the current government borrowing rate of 2.05% will be applied to the loan. The interest rate will not change and is fixed for the entire loan term upon completion of the loan agreement. The loan will be paid to the recipient upfront, or based on the cashflow needs of the recipient’s organisation.
All applicants will have a two-year calendar window in which to deliver projects, beginning from the project start date to the date stated in their loan agreement.
Scheme benefits
- The Salix Energy Efficiency Loan Scheme funds energy-saving and renewable energy projects at a fixed interest rate of 2.15% APR.
- Funding to cover 100% of the project costs.
- The technical scheme criteria have been extended to £350 tCO2e with a 10-year payback.
- Support from a designated relationship manager through application and delivery.
- Networking and knowledge share access to other public sector bodies.
Who and what is eligible?
Public sector organisations, from local authorities, universities, police departments and NHS Health Boards are examples of who would be eligible for funding through the Wales Funding Programme routes. If your organisation is not listed above and you are interested in applying, then contact us.
Requirements
- The resultant energy savings over the lifetime of the project must go directly back to the public sector.
- The project pays back from the resultant energy savings within a maximum 10-year period, unless the applicant can evidence a special case for investment above this payback criteria.
- The project costs no more than £350 to save a tonne of carbon dioxide over the expected lifetime of the project.
- Project must be ‘additional’. A number of criteria are used to assess whether a project is ‘additional’, including:
- Is the project required by legislation? If so, it is ‘not additional’.
- Is it required by Building Regulations or planning officers? For example, a requirement for a percentage of electricity demand in new buildings to be met by onsite renewables? If so, it is ‘not additional’.
If the project meets all the above requirements, then the project can be funded under the programme.