One of the main barriers to the uptake of energy efficiency improvements is the lack of available finance. There are a number of financial alternatives which are available to help Organisations with the up-front capital costs of energy efficiency and renewable measures and also there are significant tax benefits.
Enhanced Capital Allowance (ECA) - Tax Relief for Energy efficiency equipment
Why was it introduced?
The Government introduced the ECA scheme in 2001 to encourage businesses to invest in low carbon, energy-saving equipment.
What does the ECA Energy scheme involve?
The scheme provides a tax incentive to businesses that invest in equipment that meets published energy-saving criteria. The Energy Technology List (ETL) details the criteria for each type of technology and lists those products in each category that meet them. At this time LED lighting does not need to be listed to qualify, however you will require a statement from either the manufacturer or supplier.
For more details, take a look at http://etl.decc.gov.uk/etl
Key features of the ECA scheme
- Open to all businesses that pay UK corporation or income tax, regardless of size, sector or location. (Loss making businesses may apply against income tax payments)
- Provides 100% first-year capital allowances on investments in energy-saving equipment against taxable profits of the period of investment
- Only spending on new and unused energy-saving equipment can qualify for ECAs
- Capital allowances are available for spending "on the provision of" plant and machinery. This can include certain costs arising as a direct result of the installation of qualifying plant and machinery such as, transport of the equipment to the site and some direct installation costs.
The Carbon Trust Green Business Fund
Energy efficiency support, energy assessments and funding for small and medium-sized businesses in England, Scotland and Wales.
The Carbon Trust Green Business Fund is the brand new energy efficiency support service for small and medium-sized companies in England, Wales and Scotland. It provides direct funded support through energy assessments, training workshops, equipment procurement support and up to £10,000 capital contribution towards your energy saving equipment purchase.
For more information, please click on attached link https://www.carbontrust.com/
Low Carbon Workspaces
Low Carbon Workspaces helps small to medium sized enterprises (SMEs) identify opportunities to reduce energy usage by offering a match funded grant of up to £5,000 to help pay for the installation of energy efficiency solutions.
Potential activities that can be funded by the grant include
- Energy efficient lighting (LEDs)
- Cavity and solid wall insulation
- Efficient boilers
- Double glazing
Grants are open to SMEs across the South East of England (excluding London). To claim the full grant of £5,000 the total project cost must be £13,000 or more.
For more information – see http://www.lowcarbonworkspaces.co.uk
To identify which energy savings measures are appropriate we recommend carrying out an EPC or non - domestic Green Deal report.
Salix Finance Ltd delivers 100% interest-free capital to the public sector to improve their energy efficiency and reduce their carbon emissions.
Salix was established in 2004 as an independent, publicly funded company, dedicated to providing the public sector with loans for energy efficiency projects.
ReEnergise Smart Finance
Up to £5million is available to UK-based organisations, however it is expected that most projects will be valued in the region of £25,000 and £250,000.
Technologies eligible for ReEnergise SmartEnergy Finance include biomass, solar PV, solar hot water, wind turbines, anaerobic digestion and ground/air-source heat pumps.
The fund will also support broader energy efficiency measures such as lighting upgrades, insulation, building management and monitoring systems, voltage optimisation and upgrades and efficiency improvements to process and manufacturing machinery.
ReEnergise will charge users ‘limited fees’ for financing, with basic set-up and on-going management costs. The cost of financing projects will be wrapped up in the lease, rental, or interest payments charged over the financing term.