Salix Decarbonisation Loan — frequently asked questions
Are FE colleges eligible for the Salix Decarbonisation Loan?
Yes — every FE corporation, sixth form college, specialist designated institution and land-based college in the UK has been eligible since the November 2022 ONS reclassification moved the FE sector into central government. Before November 2022, FE colleges were outside the Salix eligibility boundary. Now Salix is the default funding route for FE college solar projects.
What is the maximum loan per project?
Salix Decarbonisation Loan typically caps at £600,000 per project. Some multi-site portfolio bids have been agreed at higher values where the corporation board governs the entire programme as a single project. For genuinely larger capital programmes, see our PSDS Phase 4 + Salix combined funding guide.
What is the interest rate?
0%. Salix Decarbonisation Loan is interest-free. The corporation repays only the capital, from realised energy savings, over the loan term.
What is the repayment term?
Typically 8 years. Some portfolio-scale bids have been agreed at 10 years where the energy savings calculation supports a longer term.
How is the energy savings calculation audited?
Salix requires auditable methodology — 12+ months of half-hourly meter data baseline, modelled generation using PVsyst / PV*Sol / Salix-approved tools, realistic self-consumption assumption per campus use pattern, conservative panel + inverter degradation curves, and a 25-year operational projection. Aspirational claims trigger clarification rounds that delay approval.
How long does the Salix application take?
8-14 weeks from submission to loan offer typical. Repeat applicants and well-prepared first-time applicants reach the lower end. The DNO G99 grid connection application runs in parallel — typically the critical-path item, not Salix.
Can a multi-site group corporation submit one Salix bid for the entire portfolio?
Yes. Salix has accommodated multi-site FE corporation bids since the November 2022 reclassification. A single bid covers the whole portfolio with aggregated energy savings calculation and single corporation board approval minute. Typical processing time 10-14 weeks for portfolio bids.
What happens after the 8-year repayment ends?
Years 9 onwards, all energy savings drop to the corporation's bottom line. For a typical 280 kW general FE install repaying at ~£30k/year against £55-65k/year of energy savings, the post-repayment net benefit is £55-65k/year for the remaining 17 years of PV system life — typically £1m+ cumulative.
Are sixth form colleges eligible for Salix?
Yes. Sixth form colleges sit inside the November 2022 ONS reclassification scope, whether converted to academy status or remaining as standalone sixth form corporations.
Can we combine Salix with PSDS Phase 4 on the same project?
Yes — and many corporations do. PSDS Phase 4 funds the higher-carbon-saving elements (heat pump, building fabric) as 100% grant; Salix funds the solar element as interest-free loan. The combined structure delivers cash-flow positive year one with zero net capital cost in many cases.
Does Salix fund battery storage alongside solar?
Yes. Battery storage included in the solar project scope is eligible. The energy savings calculation includes the battery's contribution to self-consumption uplift.
What disqualifies a project from Salix?
Three things: weak or aspirational energy savings calculation (modelling self-consumption above conservative norms); inadequate structural / asbestos / DNO due diligence; absence of corporation board approval minute. We address all three at the bid drafting stage.