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Salix Finance

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Interest-free loans to the public sector to improve energy efficiency and reduce energy bills, for example by installing LED lighting.

Salix Finance provides interest-free government funding to the public sector to improve their energy efficiency, reduce carbon emissions and lower energy bills. Our public sector clients can use the loans to fund the installation of LED lighting and controls.

There are different schemes for different types of public sector body, as follows:

Local Authorities, Higher Education and NHS 

Projects must comply with the following criteria:

  • the project must pay for itself from energy savings within 5 years;
  • the cost of CO2 saved must be less than £120 per tonne over the lifetime of the project;
  • the project must not already have started or have been fully funded from a different source, and it must not be required by Building Regulations or planning officers (e.g. requirement for a percentage of electricity demand in new buildings to be met by onsite renewables);
  • it must not be for commercial gain other than the reduction of costs through increased energy efficiency.

Note that any FE College who receives the majority of their income directly from the public sector can apply. Only those projects where the resultant energy savings, over the lifetime of the project, go directly back to the public sector and the public sector gains a direct financial benefit are eligible.


The Schools Energy Efficiency loans scheme provides maintained and grant aided schools with interest free loans to finance up to 100% of the cost of energy saving projects. A school can apply direct or through their local authority.

The project must meet the following criteria:

  • it must pay for itself from energy savings within 8 years;
  • the project cost per lifetime tonne of CO2 saved must not exceed £200.

The project must not have already started or been fully funded from a different source. It must not be required by Building Regulations or planning officers. There is a minimum value for any single project of £500 and a total minimum application and loan value of £5,000. There is no maximum loan value.

Salix Finance for Academies

The Salix Energy Efficiency Fund (SEEF) was launched in 2016 to provide energy efficiency finance for projects carried out by academies including large MATs, sixth form colleges and Free schools open for more than one year.

The fund has so far had annual funding rounds. Visit for up-to-date information on SEEF.           

Download our guide to Energy Efficiency Finance:

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