Financing loans and tax incentives for energy efficient equipment
The Carbon Trust offers leases, loans and other financing options for businesses seeking to reduce their energy use. New, more efficient equipment should lower your energy bills and loan payments are calculated so that they can be offset by the anticipated energy savings.
- Carbon Trust: An SME guide to financing energy efficiency projects
- Energy Saving Trust: Grants and Loans
- Zero Waste Scotland: Funding
- NI Small Business Loan Fund
In Scotland you can search for all sources of funding on the Find Business Support website:
Scottish Government: Find Business Support
Tax incentives
There may also be tax incentives available if you invest in energy saving technologies and products. The Enhanced Capital Allowance scheme (ECA) lets you claim 100 per cent first year capital allowances on investments of qualifying equipment. You could write off the whole cost of your investment against your taxable profits for the period in which you make an investment.
Some energy efficient and renewable materials also qualify for reduced rates of VAT. For example, installing energy efficient central heating systems, solar panels and insulation all qualify.
Equipment and technologies that qualify for the ECA scheme - provided they meet the scheme's requirements - vary over the years, and currently include:
- electric cars and cars with zero CO2 emissions
- plant and machinery for gas refuelling stations, for example storage tanks, pumps
- gas, biogas and hydrogen refuelling equipment
- zero-emission goods vehicles
- equipment for electric vehicle charging points
- plant and machinery for use in a special tax site in UK Freeports or Investment Zones, if you’re a company
GOV.UK: Capital Allowances – first year allowances