Salix Funding (Public)
Most CRT lighting units and retrofits are eligible for Salix funding. Salix Finance aims to assist public sector organisations in combating climate change by increasing energy efficiency.
Salix Finance Ltd empowers public sector organisations to take a lead in tackling climate change by helping to increase their energy efficiency.
Energy efficient technology cuts CO₂ emissions and reduces energy bills however upfront capital is a common barrier for public sector organisations seeking these solutions, especially in the current climate. Salix Finance, a not-for-profit company funded by DECC and the Welsh and Scottish Governments, removes this barrier by providing interest free loans and has delivered matched investment to set up 143 Recycling Funds. As a result, a broad range of energy efficiency projects are being installed including lighting, insulation, ICT and variable speed drives. The energy savings made mean projects pay for themselves within five years. Once repaid, organisations continue to benefit from the savings for the lifetime of the technology.
On average, Salix projects pay for themselves within 3½ years and have a lifespan of 13½ years, providing 10 years of energy savings at no cost. To date, Salix has funded over 9,000 projects with 662 public sector bodies, valued at £194m, saving the public sector £56m annually and £750m over project lifetimes. This will reduce public sector CO₂ emissions by 340,000 tonnes annually and almost 4.5 million tonnes over the lifetime of the projects.
Salix also facilitates knowledge sharing through quarterly regional meetings, technical workshops and project case studies supporting clients deliver long term cost effective saving
Tax Relief (Corporate)
The Enhanced Capital Allowance (ECA) offers tax allowances for certain energy saving technologies, including energy and carbon efficient lighting. 100% of the cost of equipment that qualifies can be written off against the year's taxable profits.
The scheme offers a 100 per cent First-Year Aallowance (FYA) for investments in certain energy saving plant and machinery. If you buy equipment that qualifies, you can write off, for example, 100 per cent of the cost against that year's taxable profits. This could save you a lot of money, as well as reduce your business' energy use, carbon footprint and climate change levy payments.
The ECA energy scheme supports a variety of energy saving technologies, such as energy efficient boilers, lighting, refrigeration equipment, and metering and monitoring systems. This guide explains how the scheme works, what energy saving products qualify, and how to claim an allowance.
What is the ECA energy scheme?The ECA energy scheme aims to encourage businesses to invest in certain energy-saving technologies.
The ECA energy scheme lets your business claim 100 per cent first-year tax relief on investments in qualifying technologies and products. This means you can write off, for example, deduct - the whole cost, or up to the published claim value, of buying the energy-saving product against your taxable profits in the year of purchase.
ECAs bring forward tax relief, so that you can set it against profits from a period earlier than would otherwise be the case. See the page in this guide on how to claim an ECA for listed energy saving products.
Only new equipment is eligible for an ECA, used or second-hand equipment does not qualify. Eligible equipment, and the criteria they have to meet, is published in the Energy Technology List. The criteria are reviewed annually to keep pace with technological progress. See the section below on products covered by the ECA energy scheme.
Benefits of the ECA energy schemeUsing energy-saving equipment will help reduce your energy bills, saving your business considerable sums of money in the long term.
Claiming ECA tax relief will save your business even more money, improving your cashflow for the year that you invest in the new equipment. And using the equipment itself will help reduce the impact your business has on the environment.