Salix Decarbonisation Loan — frequently asked questions
Are FE colleges eligible for a Salix loan?
It depends on the scheme and the nation. The ONS reclassified FE colleges into central government in November 2022, but eligibility is set scheme by scheme: the Scottish loan rests on public-body duties under the Climate Change (Scotland) Act 2009 and the Wales Funding Programme names colleges. Check the scheme page before assuming either way.
Is a Salix loan open for English colleges?
No. As of 20 October 2026 Salix lists no scheme open for England: the England Recycling Fund is a historic fund and PSDS Phase 4 closed to new applications in November 2024. The open loans are the Scottish Public Sector Energy Efficiency Loan Scheme and the Wales Funding Programme.
What are the terms of the open loans?
Scotland (SPSEELS): zero interest, up to a 12-year payback at no more than £305 per lifetime tonne of CO2, up to 100% of eligible compliant costs. Wales (Wales Funding Programme): fixed 2.45% interest, up to 100% of project costs, £350/tCO2e criteria with a 10-year payback.
What is the maximum loan per project?
Scotland: no maximum application and a £5,000 minimum. Wales: up to 100% of project costs. Check the scheme pages for current limits.
How is the energy savings calculation audited?
Salix requires an auditable methodology: 12+ months of half-hourly meter data as a baseline, modelled generation from an accepted PV simulation tool, a realistic self-consumption assumption for the campus use pattern, conservative degradation curves and a 25-year operational projection.
How long does an application take?
Salix's February 2026 guidance notes say its technical team aims to complete assessments within three weeks, and the Scottish notes add a target of 20 working days from submission to decision. The DNO G99 grid connection is usually the critical-path item.
Can a multi-site group corporation submit one bid for the portfolio?
Where a scheme is open, one application can cover several campuses with an aggregated energy savings calculation and a single corporation board approval minute. Each application is assessed on the scheme's carbon-per-pound criteria.
What happens after the loan is repaid?
All energy savings then drop to the corporation's bottom line. In the illustrative 280 kW model on our Salix page, repayments of about £30k a year sit against £55-65k a year of modelled savings. That is a model, not a quote.
Can a Salix loan be combined with PSDS Phase 4?
PSDS Phase 4 is closed to new applications. A project that already holds a Phase 4 award should ask Salix how any other funding interacts with its grant conditions.