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Energy Efficiency Loan Fund

Programmes and implementation

0% APR Loans for energy efficiency

Interest-free loans for energy efficiency and renewable energy projects in Wales

The Carbon Trust can help small and medium-sized enterprises (SMEs) in Wales to fund new energy efficiency and renewable energy projects with interest-free loans of between £3,000 and £200,000. 

The Energy Efficiency Loan Fund has helped over 700 businesses in Wales save over £9m per year on their fuel costs.

Apply now

Loans are available for a wide range of energy saving projects, including heating, cooling, lighting and solar PV, amongst many others. There are no set-up or administration fees. It only takes 15 minutes to apply and if successful, we can process your application within 10 working days.

Make an application

Interested? The Loans Team are available to provide assistance Monday to Friday on 028 9073 4398.

Read how the fund helped Bryn Tanat Hall install a new biomass boiler and solar PV array

Where do I start?

  1.  Get a quotation from your supplier of the estimated running cost for the proposal  
  2.  Download and complete the loan calculator to see how much we can offer you
  3.  If you would like to proceed, ask your supplier to complete the energy saving calculator
  4.  Check 'how to tick all the boxes' to ensure you have all of the right documents - including the Beneficial Ownership Declaration form


If you haven’t yet selected an equipment supplier for your project, try our Green Business Directory for a list of accredited suppliers working in your area. Please note that it is your responsibility to select and be satisfied with a supplier’s expertise, standing, reliability and competence. We also suggest that you seek a variety of quotes from different suppliers from which to select the most appropriate offer.


Still unsure? 

Get in touch


Is my business eligible?

To apply for an interest-free loan, your business must meet the following criteria:

  •  be a private sector SME in Wales
  •  have been trading for the minimum period (limited company 12 months, unincorporated company 36 months)
  •  have an acceptable credit history
  •  project replaces existing equipment, and makes on-site fossil fuel savings 
  •  be eligible for funding within the context of de minimis state aid regulations
  •  demonstrate that the energy improvement of a project provides carbon emissions savings of at least 10%


We can support most projects where there is a carbon emissions saving such as commercial refrigeration and lighting. For more examples and further information see our application guide.


Check your eligibility


What other support is available for SMEs?

The Green Business Fund is dedicated to supporting small to medium sized organisations (SMEs) in England, Scotland and Wales, and providing opportunities to improve energy efficiency and reduce energy costs.  


Energy assessment and implementation advice

Fully funded energy assessments at no cost to your business are offered to help identify areas for energy and cost savings. This service is provided either remotely (via telephone and email) or in person on-site, depending on your location and energy spend. Implementation advice and equipment procurement support helps any organisation with fewer than 1000 employees find reputable suppliers and gather quotes for specific projects. Apply now



The fund offers two-hour workshops for small companies across England and Wales to learn how to identify and implement opportunities to reduce energy costs within their business and how to access further services from the Green Business Fund. Find out more



A series of free technical webinars covering a wide range of energy topics. Delivered by a Carbon Trust expert, these interactive webinars last approximately 45 minutes to an hour with the opportunity to ask specific questions. Sign up 



Download one of our free and impartial guides to help reduce your organisation's carbon footprint. The guides give expert advice on energy efficient technology and renewable energy, as well as sector-based advice covering retail, hospitality, manufacturing, and many more. Go to the Green Business page to find out more



Measuring, manage and reduce your carbon emissions and energy costs. Our carbon footprint calculator, energy benchmarking and business case tools are designed specifically for small to medium sized businesses:


Read more


What's the supplier's role?

  1. Applications MUST be done by the customer: if they require any support, the loans team are available Monday – Friday, 9am – 5pm
  2. If your customer has already purchased, or placed an order for, any equipment, we are unable to provide funding towards their project 
  3. We prefer a project to payback in five years, but if it doesn’t, we may still be able to provide some funding towards it
  4. Customers can apply more than once, up to the maximum loan amount


Your customer will be asked to provide supporting documentation for their application relating to the project and their business, as listed in our leaflet ‘What We Need’.

You need to provide them with the following:


Read more here:

The Suppliers Role (pdf)


In a time when banks seem unwilling to lend to SMEs, the Carbon Trust proved an enthusiastic and knowledgeable partner to help us achieve our environmental targets.

Richard Haigh, Capital Valley Plastics

The team at the Carbon Trust was very efficient and friendly to work with, and were understanding of the challenges of our project timetable. The loan has enabled the Trust to avoid grant funding and therefore qualify for the Renewable Heat Incentive, which will be a significant help towards the running costs of the new biomass system.

Ran Foster-Mason, Aberglasney Restoration Trust

Make an application

Before starting your application, please ensure that you have read the Carbon Trust Loan Application Guide.

There are no set-up or administration fees. It only takes 15 minutes to apply and if successful, we can process your application within 10 working days.


Apply Now 

Need some assistance? The Loans Team are available to provide assistance Monday to Friday on 028 9073 4398 or email us at



Case Studies

P&A wanted to install a new central heating system to improve conditions for employees based in offices and warehouses across the site. The new heating system was financed thanks to an interest-free loan from the Carbon Trust, which is projected to save the business over £20,000 a year.

An energy efficient loan enabled Bryn Tanat Hall to install a new biomass boiler and solar photovoltaic (PV) array. Annual savings amounts to £16,000 and 105 tonnes CO2.

Cohesive upgraded their heating and lighting with the help of a Carbon Trust energy efficiency loan, to reduce their energy costs, cut carbon emissions and ultimately, keep their office warm and safe. Annual savings amounts to £2,000 and 8 tonnes CO2.

See how Princes Gate has been working in partnership with the Carbon Trust and the Welsh Government since 2010 on various energy efficiency projects such as LED lighting and low pressure compressed air.



Can the loan be used with other finance?

The loan amount is based on the project's energy savings, rather than cost, so additional finance may sometimes be required. 

If you have secured grant funding, the maximum loan amount we could provide is the net project cost less the grant funding. 

You can use company funds, or other unsecured lending. 

We do not permit other finance to be secured on the equipment, if you are considering additional finance please contact us to discuss. 

Application process - How long does it take?

Applications are submitted online, and if all the supporting documentation provided is correct, we can issue a loan offer within ten working days - often quicker - subject to availability of funds. 

Where do the funds come from?

Welsh loans are funded from the Carbon Trust reserves. 

What is the loan repayment criteria?

The repayment term is based on the amount borrowed divided by the anticipated annual monetary savings. This is then rounded up to the next full year, to a maximum 4 year repayment term. Monthly repayments commence after commissioning. 

Which suppliers can I use?

We do not make supplier recommendations for your project. You are free to choose your own supplier. However, you must ensure you choose a supplier who can implement the project to your satisfaction. If you are having difficulty identifying a suitable supplier, you may wish to consider using one of the Carbon Trust's Accredited Suppliers who are listed on our Green Business Directory

Can my supplier complete my application form?

No. Our agreement is with you, and it is crucial that you complete the online application form, and are aware of the terms and conditions associated with it. 

What's the catch?

There isn't one. The loans are unsecured, interest free, with no arrangement fees. 

The Carbon Trust is authorised and regulated by the Financial Conduct Authority for consumer credit.  The Carbon Trust is a company limited by guarantee, registered in England and Wales (number 04190230) with its registered at 4th Floor, Dorset House, 27-45 Stamford Street, London, SE1 9NT.

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