Changes to the Enhanced Capital Allowance (ECA) scheme for energy changing technologies have been announced as part of the UK Government’s Budget 2015, delivered by Chancellor George Osborne on Wednesday 18 March.
Based upon evidence provided by the Carbon Trust and its partner Jacobs, the Government has stated that a number of technical and criteria changes will be made to the Energy Technology List (ETL). The ETL details products which qualify for the ECA scheme, allowing companies to set 100% of the cost of the assets against taxable profits in a single tax year.
The ETL will be updated in the summer. Planned changes include:
- Introducing a new category of Waste Heat to Electricity technology that can be used to improve on-site energy savings. Use of this technology could, over a 5 year timeframe, support carbon savings of 42,000 tonnes of CO2 emissions and reduce on-site electricity consumption by 75GWh.
- Making a significant change to the Packaged Chillers technology category, permitting listing of equipment only when supported with seasonal performance data.
- Expanding the range of Air to Water Heat Pumps technologies supported, improving alignment with Eco-Design regulations, and a moving to seasonal performance measurement.
- Changing thequalifying thresholds for Heat Pump Driven Air Curtains and removing single split water source products from this category.
- Expanding the technologies supported under the categories of Converter Fed Motors (previously listed as Permanent Magnet Synchronous Motors) and Line Operated Motors (previously listed as Single Speed Induction Motors).
- Changing thequalifying thresholds for both High Efficiency Lighting Units and White Light Emitting Diode Units.
- Changing thequalifying thresholds for Refrigerated Display Cabinets and Close Control Air Conditioning, as well as changing the product testing conditions for the latter.
There will also be minor housekeeping changes made to some criteria. Any ETL listed suppliers affected by these changes will be informed directly.
We are delighted to see these changes approved by government. They ensure that the ETL remains the foremost and largest list of commercial and industrial energy saving products available in the UK. The ETL helps businesses identify best in class products and gives them confidence that claimed energy savings can be achieved. Purchasing ETL listed products enables customers to claim enhanced capital allowances and can also help them achieve SKA or BREEAM environmental impact certification.
Paul Huggins, Associate Director, Technology Programmes, at the Carbon Trust
Read more on the ECA Scheme
For more information on these changes you can contact the ETL Team directly by emailing ECAQuestions@carbontrust.co.uk or calling 0300 3300657.
About the Carbon Trust
The Carbon Trust is an independent company with a mission to accelerate the move to a sustainable, low-carbon economy. The Carbon Trust:
- advises businesses, governments and the public sector on opportunities in a sustainable, low-carbon world;
- measures and certifies the environmental footprint of organisations, products and services;
- helps develop and deploy low-carbon technologies and solutions, from energy efficiency to renewable power.
Notes to Editors
About the Enhanced Capital Allowance (ECA) Scheme
The Enhanced Capital Allowance Scheme for energy saving technologies allows businesses to claim 100% capital allowance tax relief of qualifying purchases of plant or machinery.
About the Energy Technology List (ETL)
The Energy Technology List qualifies products for ECA eligibility. The ETL is composed of two sub-lists: (i) the Energy Technology Criteria List, a list of specifying criteria that qualifying products for ECA scheme eligibility and (ii) the Energy Technology Product List which lists in a catalogue format, for most but not all technologies, eligible energy saving products.
About the Carbon Trust and the Energy Technology List
The Carbon Trust manages the Energy Technology List on behalf of the Department of Energy and Climate Change, and has done so since 2001. Its role is to deliver an ETL managed service that includes understanding leading edge technologies, evaluating developing technology markets and qualifying technologies for ETL listing.