From March 2018, developers using innovative new renewable energy technology in their building projects can apply for a loan from the Manchester Low Carbon Fund. The fund has been launched with a £15 million fund available for loans.
Developers who use techniques such as
energy generated from waste products or Biomass Combined Heat and Power can apply for 15-year loans from the Low Carbon Fund. More conventional renewable energy such as solar of wind power will probably not be eligible for these loans and will need to apply for conventional loans such as commercial mortgages.
The low carbon fund is part of Manchester’s commitment to environmental issues. Andy Burnham, the Mayor of Greater Manchester has announced that Manchester has a goal to significantly reduce carbon emissions by 2020 across the whole of Greater Manchester.
Manchester commercial buildings that are rented or for sale need to have an Energy Performance Certificate which rates efficiency on a scale from A to G. Owners of commercial property that support the Grater Manchester’s green policies can obtain a high rating through installing renewable energy, efficient heating systems and insulation. These improvements will not be eligible for a low carbon fund loan, but bridging loans or commercial mortgage can be used to fund energy efficiency work.
Improving efficiency can make good business sense as a high energy rating can be used by landlords as a competitive incentive to attract tenants who want workplaces with less energy costs.