RBS Doubles Lending To Sustainable Energy Projects In 2015

RBS lent more than £1 billion to support UK customers' sustainable energy projects in 2015, more than doubling lending from 2014 in a third consecutive year of growth for the sector. The record £1bn confirms RBS's position as the largest lender to the UK renewable energy sector* at a time when the bank ramps up support for all businesses, from SMEs to large corporates, looking to become more energy efficient to lower carbon emissions and improve cash flow and energy security.

With almost 25 years' experience in the sector and over 300 trained renewable energy banking specialists across the UK, RBS remains committed to providing both finance and support to the sector, pledging to lend a total of £3 billion by 2017 "“ an example of RBS's on-going support for UK enterprise. 

Alison Rose, CEO of Commercial and Private Banking at RBS, said: "Our record £1bn of lending is a huge achievement, demonstrating our unwavering commitment to the low carbon economy and the jobs, businesses and communities that rely on it. It also highlights British businesses' appetite for investing in renewable energy projects."

More than 400 small and medium sized businesses (SMEs) have identified almost £10m of potential long-term savings through RBS's unique energy audit service, which helps businesses find ways to cut energy consumption, such as installing onsite renewables or replacing inefficient heating systems. The bank can also support businesses by providing funding for installation costs or refinancing for these sustainable energy projects.

The service is now being extended to large corporate customers with an annual energy spend of over £200,000, to help them look at whether they could use energy more efficiently, buy better or even generate their own. The scheme can also help corporate customers with the Energy Savings Opportunity Scheme (ESOS) and other government regulations, as well as supporting and financing customers to make transformational and long term changes to their energy consumption. 

Alison Rose continued: "Sustainable energy consumption is a win-win situation for our customers. Our unique funding proposition helps them realise long term cash flow improvements and reduce their environmental footprint, something which is increasingly valued and expected by their own shareholders, investors and customers."

The rise in lending to renewable energy projects was driven by significant increases to both solar and biomass projects, with lending to solar projects more than trebling to over £450m compared to 2014. RBS has been at the forefront of the UK solar market since its inception in 2010 and in addition to direct lending over that period, it has arranged financing for £550m worth of solar projects. It continues to support the sector as it evolves and this month funded the largest floating solar project in Europe, owned and operated by Lightsource on Thames Water's Queen Elizabeth II Reservoir near Heathrow airport [pictures attached].

The increase in lending to biomass "“ from less than £50m in 2014 to more than £150m in 2015 "“ was largely driven by Lombard, RBS's specialist asset finance lender. Lombard's focus on renewable energy projects led to a change in policy last year enabling the lender to use the asset and resulting revenue as security against lending for these projects as an alternative to cash or land, granting greater cash efficiency to customers.

Sustainable energy was also a key focus for RBS's own operations as we reduced total energy consumption by 15 percent between 2012 and 2015. The bank is committed to a further 15 percent reduction by 2020. Energy saving projects across the RBS estate have included: 

- A reduction in annual energy spend of £350,000 at our main London office achieved through initiatives including replacing air conditioning with fresh air to cool the building and changing the lighting systems.

- £35,000 saved by switching to energy efficient bulbs and introducing motion sensors in the car park at RBS' Headquarters in Gogaburn, Edinburgh.

More recently, RBS has:

- Fitted 200 branches with systems to efficiently control lighting, heating and cooling to reduce energy consumption by 15 percent.

- Installed solar panel installations, LED lighting, and upgrades to heating and cooling systems in larger buildings, with a projected total saving of 28 percent in our Bristol office "˜Trinity Quay'.

Meanwhile, the bank is also working with SMEs and innovators to trial new sustainable energy product ideas. Through the bank's Innovation Gateway, innovators and designers can apply to use RBS's properties as a live test environment for products before they are brought to market. The Gateway has seen a total of 46 products tested across the RBS estate, including:

- Glaze and Save, magnetic secondary glazing for heritage buildings. Installed at one London site and growing, it reduces heat loss by 56 percent

- Propelair The Toilet Reinvented, an air-based flush, reducing water use at the test site in London by 80 percent

- Waterblade, a flow modification device fitted to washroom taps that halves the amount of water used and associated energy for heating "“ now being rolled out across the RBS estate.

- Alquist Smart Cooling Control, a Fibre-optic monitoring and control system to cool data centres efficiently, saving 15 percent on related energy consumption.

Alison Rose concluded: "RBS is on a journey to reduce energy, waste and water across its estate and we've been able to show our customers the savings we have made in tandem with reducing our carbon footprint. But importantly this journey has given us the opportunity to discover and nurture new entrepreneurs, helping them to accelerate their innovations to market."

*According to InfraDeals, a renewables and infrastructure market-data provider.