Tax Breaks: Energy Efficiency 100% Tax Allowable Expenses


Simon Misiewicz

15th May 2013

Posted by Simon Misiewicz on 15th May 2013

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, or deduct – the whole cost, or deduct 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.

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.

The categories of technology covered by the ETL are:

  • Air-to-air energy recovery.
  • Automatic monitoring and targeting equipment – including component-based and portable systems.
  • Boiler equipment – including hot water and steam boilers, biomass boilers and room heaters, condensing water heaters and flue gas economisers.
    Combined heat and power (CHP).
  • Compressed air equipment – including flow controllers and master controllers.
  • Heat pumps for space heating – including air source, water source and ground source.
  • Heating, ventilation and air conditioning (HVAC) equipment – including HVAC zone controls and close control air conditioning.
  • Lighting – including high-efficiency lighting units, lighting controls and white-light emitting diode units.
  • Motors and drives – including integrated motor drive units, variable speed drives, switched reluctance drives, and single speed and multiple speed motors.
  • Pipework insulation.
  • Refrigeration equipment – including air-cooled condensing units,ncellar cooling equipment, automatic air purgers, and refrigerated display cabinets and fittings.
  • Solar thermal systems.
  • Uninterruptible power supplies.
  • Radiant and warm air heaters – including overhead radiant heaters, packaged warm air heaters and biomass fire warm air heaters.

Search for products: Eligibility Criteria And Claim Values

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