Tax & Accounting News

Rewards For Saving Energy

12/07/2010

With increasing fuel prices and the prospect of greater penalties for those who waste resources, it has never been more important for businesses to improve their energy efficiency.

The good news is that there are a number of schemes out there designed to make this easier. As well as the loans on offer from the Carbon Trust, the same organisation also provides free site surveys for firms spending more than £50,000 a year on energy, with advice on how energy use can be reduced.

Enhanced Capital Allowances (ECAs) allow firms to claim 100 per cent first year Capital Allowances on spending on energy-saving plant and machinery, water conservation equipment and low-emission vehicles. Even where ECAs do not apply, ordinary Capital Allowances can still provide an incentive to replacing outdated equipment with newer items which are likely to be more efficient.

It may be a good idea when buying new equipment to consider its ‘whole life’ cost – a more expensive product may save the company money in the long term if it uses less energy.

For more ambitious projects, the government offers grants of up to £500,000 to companies and organisations installing biomass-fuelled or combined heat and power systems while the Feed-in Tariff scheme gives regular payments to those who generate surplus electricity through solar panels and wind turbines, which can be sold back to the National Grid.

Grants of up to £180,000 are available for schemes which encourage construction waste recycling, while there are other ‘green’ schemes available on a local or regional basis.

For more information please contact us.