The good news is that paying the full cost out of your own capital, right now, is not the only way forward. There are broadly two routes worth knowing about: grant funding, which can offset or in some cases cover a large part of the cost, and asset finance, which lets you spread the cost over time. They suit different situations, and sometimes they work together.

Grant funding: money that doesn’t need paying back

What a lot of people don’t realise is that funding is often available to help pay for water efficiency work, and it isn’t something you have to pay back.

Across the UK there are a growing number of grants and funding schemes aimed at helping businesses and organisations use less water. Water wholesalers in particular are increasingly keen to support projects that reduce demand on the network, because every litre their customers save is a litre they don’t have to supply, treat or find in an already stretched system. The range of funding on offer seems to be widening year on year.

We’ve delivered several projects with the help of this kind of funding. For example, at the Theatre Royal Winchester, grant support helped fund a full washroom refurbishment, replacing the theatre’s taps, toilets and urinals with lower water alternatives and cutting its consumption significantly. At the Wildheart Animal Sanctuary on the Isle of Wight, funding supported a rainwater harvesting and sustainable drainage scheme that now captures rainwater for reuse and diverts a substantial volume away from the sewer network, reducing the sanctuary’s reliance on mains water.

Of course grant funding isn’t guaranteed. It depends on where you are, who supplies your water and the nature of the project you have in mind. Schemes open and close, and eligibility varies from region to region. But it is very often worth exploring before you rule a project out on cost, and that’s where we can help.

Through our work delivering water efficiency programmes we’ve built good relationships with a number of water wholesalers, and we’re well placed to help you understand what might be available in your area and to support you through the application if there’s an opportunity worth pursuing.

Asset finance: spread the cost, start saving now

Where grant funding isn’t available, or doesn’t cover the whole project, financing is the other way to avoid a large upfront outlay.

We’ve partnered with Tower Leasing, an experienced asset finance provider, so that you can spread the cost of equipment over manageable monthly or quarterly payments rather than paying it all at once. Instead of waiting for next year’s budget to free up, you can install the equipment now and start saving straight away. Lease periods typically run between two and five years.

The benefits go beyond simply splitting the bill:

• You keep your cash inside the business rather than tying it up in equipment.
• You get the equipment when you need it, not just when the budget allows.
• You can claim 100% tax relief on the rentals you pay.
• You protect your existing credit lines by using leasing as a separate funding facility.
• You can structure the payments to suit your budget.

There’s a point here that often gets missed. Because water saving equipment starts cutting your bills the moment it’s installed, the savings can offset the repayments. In some cases the reduction in your water bills is actually greater than the monthly finance payment, which means a net saving from day one rather than a cost to carry.

Financing can also be more tax efficient than buying outright. On a £5,000 project leased over three years, the tax relief available on lease rentals can work out considerably higher than the capital allowances you’d claim on an outright purchase, a difference of several hundred pounds over the term in the worked example Tower uses. The exact figures depend on your circumstances and your corporation tax position, so it’s worth taking your own advice, but the principle is worth knowing.

Which route is right for you?

It depends on your project, your location and your budget. Grant funding is the most attractive option when it’s available because it isn’t repaid, but it isn’t offered everywhere or for every type of work. Financing is available more widely and gives you certainty and speed, letting you act now and pay as you save. For some projects the two can be combined, using a grant to bring down the cost and finance to spread what’s left.

The thing we’d most want you to take from this is that budget doesn’t have to be the reason a worthwhile project stalls. If you’ve got something in mind, or you just want to know what might be possible for your sites, get in touch and we’ll talk you through the options.

Call 01483 773373 or email enquiries@ecoprod.co.uk