Highland Council secures largest ever Salix loan in Scotland to fund energy improvements

27th May 2019

Photograph of Highland Council secures largest ever Salix loan in Scotland to fund energy improvements

The Highland Council has secured a £3.5m interest-free loan from Salix Finance to invest in energy efficiency measures across the Council estate. The loan, which is the largest Salix has awarded in Scotland, match-funds the Council's self-financing investments in energy efficiency to create a £7 million Energy Efficiency Fund.

The fund is ring-fenced for investment in projects that will reduce the Council's energy spend and carbon emissions. This will include switching internal and external building lights to efficient LED lighting, installing Solar Photovoltaics, and upgrading inefficient oil boiler systems.

Salix Finance is an independent organisation that provides interest-free loans for investment in improving energy efficiency. Salix is funded by the Scottish Government, the Welsh Government and the Department of Business, Energy and Industrial Strategy and provides finance to public sector bodies to reduce their carbon emissions and energy spend.

Work is being undertaken by Council officers to refine the projects and determine the best sites to maximise financial and carbon savings. Thanks to these upgrades, the Council forecasts a potential saving of over £600,000 per annum on energy bills and annual carbon savings of over 1,600 tonnes of carbon dioxide equivalent.

Lighting and heating upgrades are also anticipated to make considerable improvements to the working and learning environments for both staff and school pupils.

Councillor Margaret Davidson, Leader of the Council, said: "We are delighted to have secured this loan from Salix Finance. Investing in energy efficiency measures across our Council estate is vital to both our financial and environmental sustainability."

She added: "The Council recognises that it has a vital leadership role in terms of reducing the region's climate change impact to support both national and global emissions reduction targets. This funding from Salix, alongside work which has already been programmed, will allow us to go further and faster in terms of mitigating our impact."

Councillor Gordon Adam, Chair of the Commercial Board, said: "Advice from Procurement Scotland has indicated that electricity prices are going to rise significantly by 2020/21. The Council must reduce our consumption of energy to protect us from future increases to our energy bills and reduce this budget pressure, therefore helping us protect our frontline services.

"Securing this interest-free loan enables us to significantly increase the amount of energy efficiency work we can undertake. It is a really exciting opportunity and an important component of our Energy Strategy, alongside reducing energy use through behaviour change and increasing the Council's renewable energy generation."

The Council will operate the loan as a ‘Recycling Fund', whereby savings made from these projects will be ‘recycled' back into the Energy Efficiency Fund for investment in additional energy efficiency measures. The Council can continue to ‘recycle' this funding, without interest, for as long as it has projects that meet Salix criteria to reduce carbon emissions and energy spend.

To date, Salix has worked with the public sector in Scotland to invest over £51 million in energy efficiency projects, saving an estimated £146 million over the lifetime of the projects.

A Highland council paper on lighting in February 2018 said, "The LED replacement programme has seen the number of lights converted across the Highlands rise from 7,000 units in 2015/2016 to 12,500 in 2016/2017 with a projected figure for the end of 2017/2018 of 19,000 which represents 35% of our lighting stock. The programme has reduced our electricity consumption by 25% saving 3.5 million kWh per year and is helping offset energy price increases.

---------------------------------------------------------------------------

1 March 2018 - Highland council

Highland Council to generate income through solar energy

The Highland Council is to progress with plans to generate over £4 million profit and significantly reduce its carbon emissions by installing solar panels on its estate.

The Council’s Corporate Resources Committee yesterday (28 February 2018) approved a self-financing project using £2.3 million of capital to install 2.5 megawatts of solar panels on sites across the Council estate. The portfolio is estimated to generate net profit of £4.01 million over the course of 20 years. This is after repayments for the £2.3 million investment have been made, and accounting for maintenance, insurance, fees and charges.

Solar Photovoltaics, or Solar PV for short, is a technology that converts daylight into electrical power. Energy generated will be ‘sold’ to power Council buildings in close proximity.

Net profit can be achieved each year for the anticipated 20-year lifespan of the panels. It will also reduce the organisation’s annual carbon footprint by an estimated 1,000 tonnes per year.

It is hoped that this will be the first of multiple projects to generate income by from renewable energy on the Council estate. Solar has been selected for the first project as it is most efficient for the desired time scales, relatively straightforward to deploy, reliable, and market proven.

Chair of the Corporate Resources Committee, Cllr Alister MacKinnon said: "The Administration is committed to looking at new ways to generate income, make savings and for the Council to become more commercial so I am glad the Committee has given the go-ahead so work can progress."

The Council’s Commercial & Continual Improvement Team have been working closely with the Redesign Board to identify opportunities for how the Council could both generate income and reduce expenditure through energy related opportunities

Chair of the Redesign Board, Cllr Bill Lobban added: "This is a fantastic project which will bring substantial income to the Council. Staff and Members of the Redesign Board have done a huge amount of work in bringing these plans to fruition and I look forward to yet more innovative projects coming forward."

The next stage of the project will see the Commercial & Continual Improvement Team work with the Energy and Sustainability Team, Councillors and building users to confirm the optimal locations for the panel sites and coordinate implementation.

Why energy prices may keep rising

 

Related Businesses

 

Related Articles

29/9/2026 : Local Authority

Are We Trying to Save Britain’s Towns Without Planning Their Future?

Walk through almost any British town centre and you can see the evidence of change.   There are empty shops where there were once businesses.  

Today : Local Authority

Highland Council Ward 3 By-election - Voters urged to make sure their vote counts

Polling will take place on Thursday 1 October 2026 to elect one of five candidates standing in The Highland Council's Wick and East Caithness Ward 3 by-election.  Voters are being reminded to make sure they are ready to cast their vote.  

26/9/2026 : Advisory / Counseling Services

September is Scottish Start-Up Month – could your business idea become a reality?

September has become a month when Scotland's aspiring entrepreneurs are being encouraged to take a closer look at an idea that may have been sitting in the back of their minds for some time.   Scottish Start-Up Month, led by Business Gateway, has returned for 2026 with a simple message: if you have an idea for a business, this could be the month to take the first step.  

25/9/2026 : Educational Institutions

Fewer Children, More Difficult Decisions: The Future of Highland's Schools

For many years Highland Council has faced difficult decisions over small rural schools.   Some have closed, others have been mothballed, and communities have often argued that a village school is about much more than the number of children sitting in its classrooms.  

25/9/2026 : Local Authority

Glasgow’s 23,000 Council Workers Face a Major Pay Shake-Up

Glasgow City Council has taken a dramatic step in its long-running equal-pay dispute, giving notice that it intends to end existing pay arrangements for its non-teaching workforce unless an agreement can be reached with the trade unions.   Around 23,000 employees are affected.  

25/9/2026 : Employment Services

What Are the Options for Scottish Pupils Who Do Not Want the Traditional Academic Route?

Parents of teenagers in England are being told that they will need to understand a new range of vocational qualifications as their children approach the age of 14.   The Career Development Institute has welcomed the introduction of new Vocational GCSEs, which are due to start being introduced in England from 2029.  

24/9/2026 : Local Authority

The £27 Million Energy Bill Facing Highland Council – And NHS Highland's Hidden Cost

Rising energy prices are a problem for households and businesses, but there is another very large energy bill that receives much less attention.   Highland Council operates one of the largest public-sector property estates in Scotland, while NHS Highland runs hospitals, health centres, clinics and other facilities across an enormous geographical area.  

24/9/2026 : Local Authority

Public invited to Justice Service open days in Fort William and Wick

The Highland Council’s Justice Social Work teams in Lochaber and Caithness will be hosting open days in Fort William on Tuesday 6 October and Wick on Friday 9 October 2026.   The open days will provide members of the public with an opportunity to gain an insight into the Justice Service and find out more about the excellent work going on locally.  

23/9/2026 : Local Authority

Launch of New Transport Service for Renal Patients in Highland

NHS Highland and The Highland Council are pleased to announce the launch of a new bespoke year-round transport service for renal haemodialysis patients across Highland.   Funded through a grant from NHS Highland, the service marks the first phase of a new approach to patient transport delivery, designed to support the long-term development of a more sustainable, flexible and community-focused transport model for Highland.  

23/9/2026 : Local Authority

Economy and Infrastructure Committee to consider next steps on proposed Short Term Let Control Areas

Members of The Highland Council's Economy and Infrastructure Committee will meet next Monday (28 September 2026) to consider whether to progress proposals for new Short Term Let Control Areas across parts of Highland.   At the special meeting, councillors will be asked to consider the findings of a public consultation on proposed control areas covering Inverness City and a wider Highland Rural area, before deciding whether the proposals should be submitted to Scottish Ministers for approval.