Energy & Cost Savings

A Brief History

The ECA was a scheme developed by DEFRA (the Department for Environment, Food & Rural Affairs) and the Inland Revenue with the understanding that businesses were entitled to up-front tax relief on their capital spending on selected energy saving machinery. This was after a number of representatives from different companies suggested that the Government should introduce tax incentives to encourage businesses to make energy saving investments. The scheme is now managed by the Carbon Trust (which is an independent, non-profit company) and its aim is to encourage businesses to invest in energy efficient equipment that reduces their carbon footprint whilst providing energy efficiency advice to companies involved with the scheme and by supporting the development of low carbon technologies. The scheme is a fundamental part of the Climate Change Levy program, which was created under the Climate Change Act 2008 to help reduce the UK’s Carbon emissions. A legally binding target was made of an 80% reduction in greenhouse gas emissions which started in 1990 and operates until 2050.

What Is The ECA Scheme?

The Enhanced Capital Allowance Scheme is a method that has been introduced so that companies can claim 100% first year capital allowances on their spending of particular technologies against their taxable profits of the period during which they make the investment. So, any businesses that purchase equipment that is ECA registered are given the incentive of 100% tax relief on their investment in the first year and any qualifying products attract an ECA on the capital cost of the equipment plus any costs directly connected with its provision, including its delivery, its installation and its commissioning. Not only does the scheme help cash flow but it also allows for a shortened payback period. However, it is not every piece of equipment that in included in the ECA and manufacturers and importers of such equipment must establish that their products conform to the particular requirements on energy efficiency, performance and capacity. This equipment is then “ECA Registered” and appears on the “Energy Technology List” which then allows buyers their 100% tax relief on their investment within the first year.

How Will I know If The Equipment Qualifies For An ECA?

The Energy Technology List can easily be viewed at www.eca.gov.uk, where every piece of equipment that is part of the ECA will be stated. This list is constantly being updated and expanded at the beginning of each month and the website also includes contact details for the manufacturers of the qualifying products. The ETL symbol is another way of telling if the equipment qualifies under the scheme as manufacturers are being encouraged to display the Energy Technology List where ever necessary.

This Energy Technology List is divided into two parts:

1. The Energy Technology Criteria List which contains details of the energy saving criteria that must be met for each of the technology classes.
2. The Energy Technology Product List which contains a list of products that have been certified as meeting those standards.

If your equipment is imported, it can still qualify for an ECA as long as it appears on the ETL. However, if you are unsure on whether you equipment qualifies under the ECA Scheme, please contact us either through our Contact Us page or by calling our head office, where a technical expert will be able to help you.

What Is Required To Qualify?

Manufacturers must have their equipment tested to prove that it conforms to various requirements on energy efficiency, performance and capacity. For example, refrigerators must demonstrate that they are capable of maintaining the temperature of its product, such as food, below 5˚C over a 48-hour period. The equipment is subjected to standard use throughout the 2 day period, such as opening of the doors, to provide a real-life test scenario. The product within the equipment must maintain its temperature during this time period otherwise the equipment cannot qualify for the Scheme. The machinery must also show that its energy consumption level falls below a certain level over the 48 hours in order for it to qualify.

How Do I Claim Under The Scheme?

Any business that is subject to income or corporation tax can claim enhanced capital allowances. Provided the equipment you purchase is listed on the ETL at the time of purchase, you will qualify for an ECA. To claim, ensure that you retain a proof of purchase, and keep a record of qualifying purchases. Your ECA should then be claimed as part of your normal tax return calculations. Leasing, letting or hiring energy-saving equipment also qualifies. You can claim the allowance as you incur the expenditure. These claims should also be made in your tax return.

For more information about the Enhanced Capital Allowance Scheme please do not hesitate to contact Orbit Care Services either on 01252 302 128 or email us through the Contact Us page.

What is eCube?

The eCube was invented by British engineers due to the necessity that companies around the world cut down their energy consumption in the fight against Global Warming. It is the energy efficient solution within the food and beverage industry that is pioneering the way we design and operate our equipment. It has been tested throughout the world, both by independent organisations and in-house, and it has proven to reduce energy consumption by up to 33%.

How eCUBE Works

The eCube mimics food temperature as it is crafted out of a food simulant that is contained in its double-skinned enclosure. The wax cube is easily fitted onto the thermostat sensor of the refrigerator and reads only the heat from the food within the unit rather than reacting to the temperature of the ever fluctuating air. Standard refrigeration units work in a series of cycles where they start and stop to maintain the required storage temperature; however eCube significantly reduces the frequency of the refrigeration cycles by allowing them to last longer, reducing the amount per hour, thus saving energy. This is due to the fact that if a unit monitors the air temperature to determine when to turn itself on and off, it will always work harder as the temperature of air rises faster than food. By using an eCube, a considerable amount of energy can be saved and cycles can be reduced by up to 85%, leading to a colder storage unit without compromising food safety and quality.

Reasons To Choose eCube

• It is easy to install and use. The eCube can be installed in as little as 5 minutes.
• No electrical or mechanical parts are needed and the component itself is small and compact.
• It works with electronic and mechanical thermostats.
• It has a 5 year warranty and comes with a money-back guarantee.

For more information on eCube please do not hesitate to contact us.