Loans & Grants
There are two main systems in place which are advantageous to businesses. The ECA grant and the Carbon Trust loan.
The Enhanced Capital Allowance (ECA GRANT) is administered by the Inland Revenue and provides upfront tax relief for businesses paying corporation tax that invest in energy-saving equipment listed on the Energy Technology List (ETL).
Business can claim 100% first year capital allowances on investments in energy saving technologies and products.
The Carbon Trust now provides interest free loans from £5,000 to £100,000 for eligible businesses for any approved energy efficient new installations, replacements and improvements. It is repayable over a period of up to four years and there are no arrangement fees. An eligibility checklist has to be completed to calculate the annual energy efficiency savings which are predicted following the new installation.
The Carbon Trust loan has had a large increase in applications since February 2010, demonstrating that many more businesses are now considering and investing in energy efficient systems.