New green deal for farmers and growers - but be quick!

02 March 2010

Carbon Trust announces extension of interest-free energy saving loans for small and medium-sized business to farming.

Farmers and growers in England can get financial help to invest in energy-saving equipment – helping cutting energy bills and carbon emissions – using interest-free loans from the Carbon Trust.
Producers are eligible for unsecured, interest-free loans of £3,000 to £20,000 to help upgrade to more energy-efficient equipment. The loans, which will help cut energy bills by a total of £4 million and CO2 emissions by 25,000 tonnes each year, are designed to pay for themselves through direct energy savings provided over one to four years. And after the loan is repaid, farmers will make direct savings on their energy costs, as well as cutting their carbon footprints.

The loans scheme is part of the Carbon Trust's Big Business Refit - a campaign encouraging businesses to replace old, energy intensive equipment which wastes £3.3 billion a year. The loans will be available on a first come, first served basis. Examples of energy efficiency upgrades which the Carbon Trust loans will fund are:

  • Thermal screens, used in greenhouse horticulture, typically cost up to £20,000 and can save over £10,000/100t of CO2 annually
  • Milk cooling accounts for one third of the energy consumption of dairy farms. New systems cost £3,000 and save up to £1,000/6t of CO2 a year
  • Insulation used in field horticulture crop stores, typically costs around £17,000, and saves up to £10,000/50t of CO2 a year
  • Upgrading heating and ventilation controls, in livestock farms, typically costs £3,000, and saves over £4,000/23t of CO2 a year
  • Grain drying humidity controls, used in arable farming, typically costs £3,000, and saves around £1,500/10t of CO2 a year.
On average, farmers are expected to save around £10,000 a year by replacing inefficient equipment.

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