Reduce your annual energy costs through the ETL & ECA Scheme
28 August 2019
The Energy Technology List (ETL) and the Enhanced Capital Allowances (ECA) scheme are policy measures designed to encourage UK businesses to invest in high performance energy efficient equipment. Together the ECA Scheme and ETL reduce the financial and transactional costs associated with purchasing energy efficient products by allowing companies to write off the costs of the products against their taxable profits.
How does it work?
The ETL is a free-to-use list consisting of approximately 60,000 energy efficient products. The list is backed by regular, independent evaluations of the market across 57 technology categories, providing a benchmark for what currently represents top performance. You can access the list here.
The ECA scheme provides a financial incentive to invest in products that meet the standards for high energy efficiency performance set by the ETL. Companies that buy an ETL qualifying product can receive accelerated tax relief on the purchase of that equipment, by claiming a 100% first year capital allowance (claim must be made during the same financial year that the product was purchased). For example, if a business spends £10,000 on energy efficient assets qualifying for ECAs, they would be able to secure tax relief of £2,100 in year one (where corporation tax is 21%). But the cost saving benefits don’t just stop there – the tax relief, combined with the energy cost saving benefits delivered by the efficient equipment, will help recover the capital cost of the equipment faster, so your organisation can reap the long-term benefits of improved energy efficiency much quicker.
It may also be useful to embed the ETL into your organisations procurement processes to ensure your business buys certified energy efficient products. By using the ETL list, which includes information on the products energy efficiency, you will reduce the time it takes for your business to select new equipment. You can find out where to buy the equipment on the list by clicking on the product details.
Technology groups covered by the ETL:
- Air to air energy recovery;
- Automatic monitoring and targeting equipment;
- Boiler equipment;
- Combined Heat and Power (CHP);
- Compressed air equipment;
- Heat pumps;
- Heating, ventilation and air conditioning (HVAC) equipment;
- High speed hand dryers;
- Motors and drives;
- Pipework insulation;
- Refrigeration equipment;
- Solar thermal systems and collectors;
- Uninterruptible power supplies;
- Warm air and radiant heaters;
- Waste heat to electricity conversion equipment.
Please note the ECA Scheme ends April 2020.