19 Aug 2013

Summary: Funding for energy efficiency in the UK is available in the form of tax relief for investments in energy efficient equipment or loans facilitated by government through the Green Investment Bank or Green Deal.


Enhanced Capital Allowances

The ECA scheme provides businesses with enhanced tax relief for investments in equipment that meets published energy-saving criteria. Capital allowances enable businesses to write off the capital cost of purchasing certain energy saving equipment (e.g. boilers, motors), against their taxable profits. The equipment in question has to be listed on the Energy Technology List which details equipment which have been assessed against the scheme's energy-saving criteria and accepted into the list. The long list of equipment is arranged under 17 technology headings. Apart from providing enhanced tax relief, ECAs also therefore help to raise awareness as to what is the most energy efficient equipment by publishing the technology list. To learn more, click here.

The Green Investment Bank

The GIB is a UK government body investing in UK projects which are both green and commercial, where capital is "additional" to available private sector finance. The GIB is the first bank of its kind and its mandate from government is to deploy at least 80% of its capital in priority sectors which comprise energy efficiency (including the Green Deal), offshore wind, waste recycling and energy from waste. The balance of the GIB's capital can be deployed in biofuels for transport, biomass power, carbon capture and  storage, marine energy and renewable heat. The GIB strategy is to participate in larger deals (generally, those larger than £30 million in total transaction size) directly, and access the market for smaller (less than £30 million transaction size) deals indirectly. To learn more, click here.

The Green Deal

The Green Deal is a financing mechanism that lets people pay for energy-efficiency improvements at their home or business premises through savings on their energy bills. There are 45 measures approved to receive funding which cover insulation, heating and hot water, glazing and microgeneration. Smaller businesses including sole traders, small partnerships and other unincorporated groups can participate. To learn more, click here.

Chemical businesses can also access incentives for low-carbon energy provided under the Renewable Heat Incentive (RHI), and for electricity, under the Renewables Obligation (RO), and small-scale feed-in-tariffs.

  • Contact point
  • Name
  • Nick Sturgeon
  • Organisation
  • CIA
  • Position
  • Director, Energy, Trade and Competitiveness
  • Phone
  • +44 20 7963 6752
  • E-mail
  • This email address is being protected from spambots. You need JavaScript enabled to view it.
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