Notice

IETF Phase 3 Spring 2024: Questions with responses

Updated 7 February 2024

Applies to England, Northern Ireland and Wales

If you have a question about the IETF that hasn’t been answered here, please contact us at IETF@energysecurity.gov.uk.

Previous and future competitions

Will there be future competition windows of the IETF and if so, when?

There will be 2 Phase 3 competition windows in 2024:

• Spring 2024, 29 January - 19 April
• Summer 2024, June / July - September

When will I know if I have been successful in the competition and can start my project?

Please see the guidance for the current application window for details.

Projects which are successful at the initial assessment stage will need to complete due diligence. Please note that success at the initial assessment stage does not guarantee funding. Any funding will remain subject to completion of due diligence to DESNZ satisfaction and agreement to our proposed Grant Funding Agreement.

Please be aware that you cannot make any claims for payment against costs incurred before you have signed a Grant Funding Agreement with DESNZ. Any work undertaken before this is done at your own risk and DESNZ does not have an obligation to pay for any costs incurred.

When considering whether to apply for the fund, please take into account not only the timings of your project, but also the time it takes to undergo the assessment and award process, including due diligence and signing the Grant Funding Agreement. We would expect this process to take around 7-8 months from the closing date of the window, although this may depend on the size and complexity of the project and your ability to provide any necessary additional information in a timely manner.

How can I get status updates on my submitted application?

Once the competition window has closed you will no longer be able to access the IETF portal. Please ensure that you download and save your application for future reference before you submit your application. DESNZ will then get in contact with the lead applicant directly to provide the relevant updates and ask for clarifications if necessary. Please contact the IETF team at IETF@energysecurity.gov.uk if you have any further queries.

Where can I find out information about past IETF winners?

Details of past IETF competition winners are available on GOV.UK.

Where can I find out information about other support?

All government grant funds are advertised on the Find a Grant portal on GOV.UK. You can use this service to:

• access government grant funding
• search and filter to find a grant that matches your needs
• find out if you are eligible to apply for a grant
• find out how to apply for a grant

You can also find up to date information on live DESNZ funds on GOV.UK at the following links:

• Find funding to help your business become greener
  Summary of support available to deploy mature technologies
• Net Zero Innovation Portfolio
  Summary of support available to support innovation, research and development into low-carbon technologies and systems.

Restrictions on applications and resubmissions

Do I need to have applied to the previous competition windows to be eligible to apply for the next window?

No, you may apply for funding in any competition window regardless of if you have previously applied or not.

Do I need to create a new account for every application window?

The lead applicant or a nominated third party will need to register to apply for Phase 3 of the IETF.

Once the registration form is submitted you will be emailed with a password and links to the password protected online application forms. If you do not receive this email, please check spam or junk folders before getting in touch with the IETF team for help.

Participation in past IETF windows, inclusion on IETF mailing lists, or attendance at IETF events does not result in an automatic registration.

I started but did not submit a previous application, can I get access to this?

Once the application window has closed, you will not be able to access your answers to any submitted or incomplete applications. It is advised that you save your answers as you go along.

Can I submit applications for future competition windows if I have already been successful in an earlier window?

Yes, there are no limits on the number of applications which you may submit, either as a lead applicant or as a project partner. You cannot, however, claim funding for the same set of eligible costs.

The IETF will only award funding where it can be demonstrated that the grant requested by the applicant is directly needed for the costs of the study or deployment project undertaken. It is your responsibility to ensure these details are correct and are in line with the relevant Subsidy Control rules and regulations.

Can I resubmit an application in future funding windows if it was not successful in previous rounds?

Yes, you can resubmit applications. We advise that you reflect on any feedback you receive from assessors to improve your application. You may improve your chance of success if you make changes to your original application based on the assessor feedback you received. There is, however, no guarantee that your application will be successful; each application will be assessed on its own merit. Applicants should be aware that there have been changes to competition rules between Phase 2 and Phase 3. For each application you submit, you must make sure that your business, project team (where applicable) and your project are eligible and the questions are answered in full.

Does a deployment project need to have had a prior study to be eligible?

Deployment projects with a grant request greater than or equal to £5 million need to have had a prior feasibility or engineering study to be eligible. The study does not need to have been funded by the IETF. In the deployment strands of the competition, you will be asked for significant detail in the application around the costs, benefits and risks of the project. The feasibility or engineering study forms part of the evidence base of supporting information.

Deployment projects with a grant request less than £5 million do not need to have had a prior feasibility or engineering study to be eligible. However, you will be asked for significant detail in the application around the costs, benefits and risks of the project. It therefore may be beneficial to have completed a study (with or without IETF funding) prior to a deployment application.

Can I aggregate multiple projects into one application?

You must submit one application form for each proposal that you intend to submit. There are no limits on the number of proposals you can submit. You may also aggregate deployment project proposals to ensure that the total grant request exceeds the minimum grant thresholds. Further details on the specific rules for this are given in the applicant guidance Section 2.3. You will be prompted in the application forms to provide details on any interdepend proposals that you may be submitting.

Lead applicants and project partners

My organisation is a public body (university, council, school etc) am I eligible to lead an IETF application, or to be part of a project team?

The lead applicant on an IETF application must be a business which carries out an eligible industrial activity. Public sector organisations are not eligible to be lead applicants and sites such as schools, universities and public utilities do not fall under the IETF categorisation of eligible industrial sites. Public sector organisations are permitted to be part of a project team, details around the funding available for project partners is provided in Section 3.1.5 of the guidance and information about public sector organisations specifically can be found at Section 4.5.4.

My organisation has an eligible industrial activity / site in England (Wales / Northern Ireland) but we are registered in Scotland, can we still apply?

Yes, if your organisation is registered in Scotland but you have an eligible industrial site in England, Wales or Northern Ireland you can still apply to the IETF.

If your industrial site is in Scotland, please consider the support offered by the Scottish Government.

As a consultant / technology provider can I lead an IETF application?

The lead applicant on an IETF application must be the eligible site owner.  Third parties, including technology providers and consultants, are not eligible to be the lead applicant, but can collaborate with the lead.

A third part may complete the application form on the lead applicant’s behalf, but they must have the lead applicant’s permission and be able to provide all of the information requested in the application form(s).

The lead applicant is ultimately responsible for the development and submission of their IETF application(s).

As a consultant / technology provider can I collaborate with an industrial partner on a project?

Yes, you can partner with an eligible industrial site who would be the lead applicant. As a project partner you can contribute to the application, carry out work related to the study or deployment project as part of the project team, and the costs you incur can be included as part of the total eligible costs. Alternatively, you may prefer to work with the lead applicant as a subcontractor, rather than a project partner, on the application.

As a consultant / technology provider or project partner, can I assist with writing the application for the lead applicant?

Yes, lead applicants can invite project partners to collaborate on an application.

I am working with project partners; will we need to sign a collaboration agreement?

If your application is successful, and you are undertaking the project with project partners, you will be required to sign a collaboration agreement with your project partners. This will need to be in place before you can sign your Grant Funding Agreement with DESNZ. If there are exceptional circumstances which means this cannot be achieved, DESNZ will consider these on a case-by-case basis. In such exceptional circumstances, where explicitly agreed with DESNZ, the collaboration agreement may be signed as soon as reasonably practicable, and in any event, no later than the first grant payment milestone. No payments against the grant will be made until the collaboration agreement is signed and provided to DESNZ. DESNZ reserves the right to review the collaboration agreement before issuing the Grant Funding Agreement to ensure it meets the necessary mandatory requirements. High level details of the requirements are included in section 6.6 of the guidance. You will be provided with further detail if you are successful.

My company provides technology and finance solutions to eligible industrial sites; can we receive IETF support?

You may work with the eligible industrial site to develop an application and to deliver it as a project partner. IETF grant funding can be used towards the upfront costs incurred from either a study or deployment project, and the eligible industrial site will need to show that they can secure the remaining match funding. DESNZ does not specify how this match funding needs to be secured, or on what terms it might be borrowed, and private financing arrangements are permitted. You must ensure that you and any project partners are content to work as a project team under the terms set out in the Grant Funding Agreement.

How is grant funding awarded when there are multiple project partners?

The lead applicant will be the signatory of the IETF Grant Funding Agreement which will specify the grant award, terms and conditions and payment milestones. DESNZ will only make payments to the lead applicant, who will have responsibility for distributing funding to project partners based on the costs they have incurred over the relevant period. The terms of the collaboration agreement which you will need to ensure is in place between all project partners should provide a framework for this arrangement. DESNZ will, in event of a dispute between partners, look for that dispute to be resolved within the terms of the collaboration agreement. Ultimately, the lead applicant is responsible for ensuring that the terms of the Grant Funding Agreement are complied with.

New sites, processes, and networks

I want to set up a new industrial site and invest in the most energy efficient, low carbon technologies, am I eligible for IETF funding?

No, new build plants are out of scope for the IETF. Energy or emissions savings must be measured and take place at site level where there is an existing operational industrial process. This means that funding cannot be used to support capital delivery of new build plant, or to repurpose a site for a new industrial process.

I want to implement an energy efficiency or decarbonisation project but we are planning to relocate our existing industrial process to a new site, can I still apply for IETF funding?

You may still be able to apply for IETF project funding under a limited set of circumstances as described in Section 3.1.4 of the guidance document. Only the costs of the IETF project would potentially be eligible for funding. The costs of relocation, construction and commissioning at the new site are not eligible for IETF funding.

The basis upon which the IETF project is awarded funding at your existing site (e.g. magnitude of benefits) must also hold throughout the relocation and monitoring and verification period. For further information, refer to Section 3.1.4 of the guidance document.

I want to expand production on my site and install more efficient, low carbon equipment to deliver the capacity I need, am I eligible for IETF funding?

IETF funding cannot be used to cover costs directly associated with expanding production at a site. Any costs associated with refitting the site to cope with higher production would not fall in scope and should not be included within your application.

In some cases, this may require adjusting your eligible costs by using a reference investment. For example, if you want to replace a boiler with a more efficient version, which happens to also have a higher capacity then you should compare the costs to a like for like investment in a boiler with the same capacity, but which would not deliver the energy saving. The difference between the two costs would be the eligible cost. We will ask you questions to understand the total, and per unit energy or emissions savings that the investment will achieve.

Can IETF funding be used to support a proposal which spans an industrial park or multiple industrial sites owned by different companies?

No, the IETF is targeted at reducing energy and emissions at site level. Individual companies on an industrial park would be able to apply to the IETF for proposals on their own sites as the lead applicant and beneficiary of the grant. The industrial park, or any external organisation, would not be able to apply on their behalf. Proposals across sites owned by different companies may not be aggregated to meet the minimum grant thresholds.

Can IETF funding be used to set up a local heat network or to transfer waste heat from one site to another?

IETF funding cannot be used to set up infrastructure outside the boundary of the lead applicant’s site. The IETF is targeted at reducing energy and emissions at site level at the lead applicant’s site.

Waste heat recovery project schemes must utilise the recovered energy primarily in the industrial process on the lead applicant’s site but may additionally utilise excess energy in non-industrial heat demands such as space heating of a factory building on the site.

If there is still excess energy after utilisation in the industrial process, the excess energy may be exported into a heat network. However, only the costs of onsite infrastructure are eligible for IETF support and only the beneficial use of recovered energy in the onsite industrial process will contribute towards the economic assessment of your proposal.

Early-stage technology proposals

Can we apply for studies that will explore which potential technologies will be most suitable for our processes?

Feasibility studies may include an options analysis to enable a comparative assessment of technology solutions provided that the technology solutions under investigation all achieve the same benefit (i.e. all energy efficiency or all decarbonisation). The technology solutions must also relate to achieving a benefit in the same part of the industrial process.

Options analysis cannot be carried out as part of engineering studies as a single technology solution should already have been identified prior to the study.

Can I apply with a technology solution which is currently lower than the required Technology Readiness Level (TRL) but is expected to rise to an eligible level during the span of the IETF?

All proposals must be at the eligible TRL level at the time of application. This is TRL 7 and above across all strands of the competition (studies, energy efficiency deployment and decarbonisation deployment).

Can I apply with a project if most, but not all, elements of the application meet the required TRL?

IETF funding can only be claimed where the full scope of the proposal meets the TRL requirement.

Can I apply for support from the studies strand of the competition to develop a pilot or to demonstrate my technology solution?

No, the IETF is not an innovation fund and cannot be used to develop pilots. The IETF aims to support the commercial roll out and permanent installation of technologies at industrial sites, you may work with an eligible industrial partner to investigate the feasibility of deploying your technology at commercial scale within their process.

There is support available for innovation, research and development into low-carbon technologies and systems from the Net Zero Innovation Portfolio.

Eligible costs and grant payments

How much information on costs will I need to provide in my application?

You will need to demonstrate that you have a clear grasp of the costs of the project and be able to demonstrate that you are claiming an amount of grant that represents value for the public purse. You will be scored based on the strength of the evidence and justification for the stated costs and the need for the amount of grant support requested.

Information on costs will need to be entered into the finance form and submitted with your application. In the application form itself you will be asked to justify your costs and provide supporting evidence such as quotations from suppliers / subcontractors, letters of intent, or an explanation of the assumptions used for internal estimates of resourcing, capital and material costs.

How should I address cost uncertainties and long lead in times for finalising cost quotations?

The cost figures that you supply with your application, will be the costs on which your application is assessed.  If your application is successful, and your cost figures have increased, you will need to cover the increase in costs.  If your costs have reduced, we will adjust our grant funding accordingly. Please ensure your estimates are as accurate as possible, taking into account the likely start date of your project, and include any assumptions you have made including adjustments or contingency for inflation. Your estimates must be justified with evidence. Quotes, letters of intent and indicative costing may be appropriate evidence and this information will be reviewed by the IETF assessors.

Can I claim costs retrospectively for projects which have already started or will start before the application window closes?

No. The IETF cannot provide support for projects that have already started, been completed, or already have approval to start at a future date. DESNZ has a duty to make sure it spends taxpayers’ money appropriately and in ways that deliver the maximum possible benefit to society. This means funding projects that deliver the greatest benefits, but also means not funding projects where significant benefits would have occurred anyway without government funding. You will need to provide evidence to prove this within your application. This evidence will be reviewed at assessment and due diligence stages of the competition. For further details please see section 4.2 (costs) and the assessment sections of the guidance.

If successful, is there a deadline for claiming funding?

Phase 3 projects must complete no later than 31 March 2028 and all costs must be incurred ahead of this date. This is to ensure that funding is spent within the lifetime of the IETF. At the end of your project (project completion) you must have completed the study or have installed and begun to operate (or be ready to operate) the energy efficiency or decarbonisation technology.

Will the IETF provide support for ongoing costs (for example, higher fuel bills) associated with a deployment project?

No. In the deployment strands of the competition the IETF will only support the upfront costs of investing in capital equipment. This does not include ongoing support for higher operational costs.

Can I claim grant funding towards the costs of staff time?

Yes, direct labour costs and subcontractor costs are eligible. Please see Section 4.1 of the applicant guidance.

What is the difference between capital and material costs in the finance form?

The costs of any equipment, components, or technology that stays in the project over its lifetime should be entered into the ‘materials section’ of the finance form. The full costs of these elements can be entered, and you are not required to depreciate the costs. We ask you to explain over which years the costs will be falling so that we can understand when payments would be required.

Any equipment that is used on a short-term basis to install or test the technology solution should be entered into the ‘capital equipment’ section of the finance form. You will be asked to complete details on the depreciation rate of the equipment so that the costs claimed are accurate for the period over which the equipment is used. For example, you may use a piece of equipment over 12 months for 15% of the time only, and it is this utilisation rate that would inform the costs attributable to the IETF proposal.

Further detail on this is provided in Section 4 of the guidance, and in the application form which provides video guidance.

I am looking to replace my existing equipment with new more efficient technology, can I get support for the whole cost of replacement?

Typically, the full costs of replacing an existing piece of equipment would not be eligible for IETF support. You must be able to show that the costs you are claiming will be directly related to achieving the energy efficiency benefit. This can be achieved by comparing the costs of your chosen technology solution against the costs of a like for like replacement of the existing equipment (that would not achieve the desired energy efficiency outcome). The difference between the costs of both investments identifies the energy efficiency-related cost and constitutes the eligible costs.

The use of a reference case removes costs that might otherwise be associated with the general maintenance and upkeep of the site’s productive capacity, expansion of capacity, or investment that might be needed to comply with current or future regulations.

If I am successful, what are the arrangements for claiming grant payments?

Costs are only eligible if they are incurred and paid by you between the project start and end dates as set out in your Grant Funding Agreement. All payments will be made quarterly in arrears on a disbursement basis, once you have defrayed the amount according to the profiles contained in your Grant Funding Agreement and have provided the required reports and evidence to support your claim. Once audits and reports are complete and approved, the claimed funds will be released to the lead applicant. You must provide evidence to support each claim made against the grant. Before the signature of the Grant Funding Agreement, DESNZ will not be responsible for, nor make any commitment in respect of, costs incurred.

Why is the subsidy intensity amount lower for deep decarbonisation deployment projects that come within scope of Article 10 of the NI Protocol?

There are two legal bases for providing subsidies in the UK. In most cases, UK subsidies must comply with the subsidies chapter of the UK-EU Trade and Co-operation Agreement and in future the UK’s domestic subsidy regime. This is a principles-based approach to subsidy control which does not have maximum intervention rates for subsidy grantors and so based on market intelligence, the IETF decided that the maximum subsidy intensity offered for deep decarbonisation deployment is 85%. Rates can vary depending on company size and location.

Aid in scope of Article 10 of the Northern Ireland Protocol, needs to comply with EU State aid rules. For IETF the legal basis for granting aid is Article 36 of the General Block Exemption (GBER) which does have maximum intervention rates, which the Fund will need to comply with, alongside the other conditions of GBER, for aid to be granted legally. This means that aid for DD deployment projects in scope of Article 10 will attract a lower intervention rate.

Eligible technologies

Please read the IETF technology guidance, Annex A, for further information. These questions do not cover all eligible technologies.

I want to install solar panels on our factory, is this eligible for IETF support?

No, the costs of purchasing, installing, and maintaining renewable electricity generation equipment, such as solar panels, are not supported by the IETF. This is because the fund targets industrial process emissions and energy consumption, and other support is available for renewables (Find a Grant portal on GOV.UK).

 If you are using a renewable electricity source, for example to enable a switch away from a more carbon intensive fuel under the deep decarbonisation strand of the competition, then the benefits of using renewable electricity rather than grid electricity will be recognised in the assessment of decarbonisation potential.

Solar thermal technologies which provide direct heat to industrial processes, replacing an existing fossil-fuel intensive heat source would, however, be eligible.

Are building efficiency upgrades such as insulation, roofing, space heating or lighting eligible for IETF funding?

No, IETF funding cannot be used for standalone building improvement projects which upgrade systems in buildings that are not integral to the industrial process itself.

Are geothermal technologies eligible for IETF support?

Yes, if the heat generated is being used within an eligible industrial process, replacing an existing heat source, then this would be eligible. Other heat pump technologies, where the heat is sourced from the natural environment or from waste process heat, would also be eligible.

I want to install a heat pump to provide heat for an existing process, would this qualify as an energy efficiency or deep decarbonisation technology?

Where the deployment of a heat pump is facilitating a fuel switch to reduce combustion-related emissions from the industrial process, such as switching from a fossil fuel boiler to an electric heat pump, this would qualify as deep decarbonisation proposal. If, however, the primary outcome of a heat pump deployment is a reduction in energy consumption, such as using the heat pump to recover waste process heat or switching from less efficient electric heating, this would count as an energy efficiency proposal.

I would like to replace or upgrade an existing Combined Heat and Power (CHP) plant to help my site become more energy efficient, is this eligible for IETF funding?

The IETF will only support investment in CHP plants as part of the decarbonisation competition strand. CHP proposals must involve an eligible fuel switch.

New build or upgrades to CHP plants that do not involve an eligible fuel switch will not be in scope of the competition. CHP project sites that seek accreditation with the CHP quality assurance (CHPQA) programme may receive favourable tax treatment.

Under the scope of the IETF competition, can I install a new CHP on an existing industrial process to facilitate a fuel switch?

Yes, the IETF can support CHP proposals where there is an eligible fuel switch. CHP plants will be considered in scope, for either the study or deep decarbonisation strands of the competition, provided that at least 70% of both the heat output and electricity output produced by the CHP plant is used for an eligible industrial process.

I want to convert our existing fleet of vehicles (HGVs used to carry goods off-site) to operate using lower carbon fuels, is this eligible under the IETF?

The IETF will not support projects related to modes of transportation used for the purpose of transporting people on or off-site, or for the transportation of goods and/or materials off-site, including but not limited to:

• automotive vehicles, such as heavy (N3) and light (N1 and N2) goods vehicles approved for road use as defined in Article 4 of Regulation (EU) 2018/858, as it applies in Great Britain
• rail
• ships, boats, barges
• air
• conveyor belts to transport materials or goods off-site (rather than between on-site production stages which would be in scope)

I want to convert mobile equipment used to transport materials onsite to operate using lower carbon fuels, is this eligible under the IETF?

Yes, the IETF will support projects that improve the energy efficiency and / or reduce emissions from non-road mobile machinery (NRMM) for example through fuel switching and / or the replacement of NRMM with fixed machinery. All projects must comply with the relevant technological eligibility requirements (see guidance). The machinery must be necessary to, and a part of, the industrial process and located within the boundary of the eligible site [and must not be removed from that site]. This can include, but is not limited to, machinery such as forklifts, crushers, off-highway trucks, cranes, or excavators, as long as these are not used for the transportation of goods and/or materials off-site, or for the purpose of transporting people on or off-site.

I want to invest in hydrogen ready equipment, can I apply to the deep decarbonisation strand of the competition?

Projects aiming to install hydrogen ready equipment, but which do not have plans to switch to hydrogen fuel in the next 5 years are not eligible for the deep decarbonisation competition. Whilst this would be a positive investment, the IETF aims to support first movers to demonstrate decarbonisation technologies, reducing the associated costs and risks of rolling the technology out to other sites and delivering guaranteed emissions savings. Installation of hydrogen ready equipment, without a guaranteed fuel switch would unfortunately not meet this aim.

To meet the conditions of the decarbonisation deployment competition, you must show that the switch to the lower carbon fuel will occur once the equipment is operational, so that the emission saving begin immediately and can be monitored. There is a grace period of 5 years from project completion applied where companies intend to switch to hydrogen, this recognises that it may take time for your intended hydrogen source to come online. You must demonstrate a realistic plan to begin utilising your identified hydrogen supply within this time frame. Further details on the eligibility requirements are included in Annex A of the IETF guidance.

Can the IETF support hydrogen production projects?

All fuel production is out of scope for the IETF, so the costs of installing or carrying out a study to set up a hydrogen production plant would not be in scope for support.

Are there any constraints on the quality of hydrogen to be used in hydrogen fuel switching projects?

Yes, in Phase 3 of the IETF, all projects that propose to use hydrogen or hydrogen blends must meet the requirements of the Low Carbon Hydrogen Standard (LCHS) for the hydrogen component of the fuel. Further details are included in Annex A of the IETF guidance and in the LCHS.

Can the IETF support anaerobic digestion projects?

All fuel production is out of scope for the IETF. The costs of installing or carrying out a study to install an anaerobic digestor (or similar plant) would not be in scope for support.

Can IETF funding be used to connect my site to the gas or electricity grid?

IETF deployment project support can only be used to switch onsite equipment to lower carbon fuels. Any costs associated with off-site works are not eligible as part of the IETF, this includes the costs of gas pipework or electricity lines which would connect your site to the local or national grid network.

IETF feasibility study projects can investigate the feasibility of the offsite bridging infrastructure required to enable the onsite project. For further details, please see Section 3.1.3 of the guidance document.

Project benefits

What units should I use in the project benefits calculator?

Please provide all energy inputs in MWh per annum. All direct emissions abatement should be provided as tCO2e per annum.

Do I need to account for changes in production in the project benefits calculator?

No. Please input your total pre and post intervention energy and/or emissions estimates. You will be asked to provide data on production levels pre and post intervention which will be used by DESNZ in further value for money assessments. You do not need to make this adjustment yourself in the calculator.

How much detail do I need to provide in the application on the expected benefits of my proposal?

If you are applying to the deployment strands of the competition, then we would expect you to be able to quantify the benefits of the project in terms of the energy savings that can be achieved (in MWh) and/or the emissions savings that will be achieved (tCO2e). This information will be requested in the application form itself, where you will be asked to explain your workings and provide supporting evidence. You will also be asked to complete a Project Benefits Calculator, which is an excel tool which captures the quantified benefits of your project. We recognise that at this stage estimates may be subject to change and so we would ask you to be as accurate as possible and to outline any uncertainties around the estimates themselves.

In the studies strand of the competition, you will also be asked to provide an estimate of the potential benefits of your proposal, though less detail is required here as you will not need to complete a Project Benefits Calculator. We recognise that until you have completed the study the energy and/or emission savings may be difficult to assess, but you’d be expected to set out the case in the strongest terms you can.

How should uncertainties around fuel prices be addressed within my application?

You will be asked various questions in the application to explain the expected benefits and costs of the project, as well as how you have estimated the payback of the investment. To do this it will be necessary to provide information about the fuel prices that you have used within your estimates. We do not prescribe the use of specific energy prices for your analysis, but we ask you to be transparent about the assumptions you have made and to note any uncertainties. In your supporting evidence it may be appropriate to provide a sensitivity analysis using different potential scenarios for your energy prices (for example, low, central, and high estimates). This might mean the different scenarios have different internal payback rates, some of which may meet your firm’s payback threshold. You will need to rationalise in your application why you believe the energy prices you have used are most appropriate for your site.