The funding has been awarded to the Carbon Trust in Wales to support the “invest-to-save” programme that provides interest free loans to pay for the installation of energy efficiency measures.
The funding will be repayable over up to eight years from the savings made and the repaid money will be recycled to help others.
A total of GBP4m will go towards a loan scheme open to any public sector body in Wales, from hospitals, schools, museums and local government. The money can be used to fund 80 different energy efficiency technologies, including building insulation, boiler and lighting upgrades and IT improvements.
And GBP1m will be used by the Carbon Trust to increase the money available for their existing business loan scheme for small businesses in Wales.
The extra money brings the Welsh Assembly Government’s total support for the Carbon Trust Wales to GBP9.5m during 2009/10 for energy efficiency projects.
Mike Batt, manager of the Carbon Trust Wales, said: “We are delighted to receive this additional funding provided by the Welsh Assembly Government. This funding will not only assist us in helping even more public and private sector organisations across Wales realise their cost and carbon savings potential, but will also help us to kick start a new campaign to encourage more organisations to take advantage of an interest-free loan.
“This programme will not only help organisations to become more efficient, it will be instrumental in Wales moving towards the low carbon economy.”