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The Carbon Trust
Energy Efficiency Loans from the Carbon Trust are a cost effective way to replace or upgrade your existing equipment with a more energy efficient version. This means an immediate benefit from carbon, energy and cost savings.
Ledview can provide details of Carbon Trust interest-free loans and assist you in completing your application. At Ledview we can work on your behalf with the Carbon Trust to help you receive an interest free business loan of between £3,000 - £100,000 for your organisations to invest in energy saving projects.
All loans are unsecured and interest free, they can be repaid over a term of up to 4 years, so in simple terms: the cost savings you make on reducing your energy consumption will pay for the loan.
Contact us to find out if you could be eligible for an interest free loan.
www.carbontrust.co.uk
Carbon Reduction Commitment (CRC)
The CRC Energy Efficiency Scheme is mandatory for all UK businesses using more than 6,000 MWh through half-hourly meters annually (this equates to approximately £500,000 in annual energy bills), starting in April 2010. It will affect around 5,000 businesses and will cost on average £38,000 per year – these projected expenses include the cost of staff and their appropriate training for the CRC reporting procedure.
If your business has an hour-hourly meter but consumes less than 6,000MWh per year, your business will not be compelled to be involved in the CRC Energy Efficiency Scheme, but you will need to disclose some information to the CRC administrator. A list of the half-hourly meters that your business uses and your annual energy usage from them should it exceed 3,000MWh per year.
If your business is a subsidiary of a larger organisation but qualifies for the CRC Energy Efficiency Scheme in it’s own right, for the purposes of the CRC scheme your business can disaggregate itself from your parent group/organisational body and participate independently
The money collected by the UK Government from the scheme is recycled directly back to the participants at the end of each Compliance year: the entire scheme from the Government’s perspective is revenue-neutral. The revenue is repaid to the companies involved in proportion to their relative emissions in the first year of the scheme – for example, if a company was responsible for 2% of all emissions in the scheme in the first year, that company would receive 2% of the funds raised each year of the CRC cycle.
Fixed-rate allocation purchases are exempt from VAT, as are safety valve purchases over the introductory phase. Trading in CRC Energy Efficiency Scheme allowances on the carbon market, however, will be taxed by the government.
This baseline figure is then modified by a bonus or penalty depending on where in the CRC Energy Efficiency Scheme league tables the company resides. The bonus/penalty rates for the top- and bottom-placed participants has been set for the first five years to be:
| Phase |
Year |
Bonus/Penalty Rate |
| Introductory Phase |
1 |
+/- 10% |
| Introductory Phase |
2 |
+/- 20% |
| First Capped Phase |
3 |
+/- 30% |
| First Capped Phase |
4 |
+/- 40% |
| First Capped Phase |
5 |
+/- 50 |
Enhanced Capital Allowances
The Carbon Trust in UK has identified a number of different technologies which attract Enhanced Capital Allowances. These technologies are set out on the ETL (Enhanced Technologies List):
ECAs are a straightforward way for a business to improve its cash flow through accelerated tax relief. The scheme encourages businesses to invest in energy saving plant or machinery specified in the ETL to help reduce carbon emissions, which contribute to climate change. The Energy Technology List (ETL) is a register of products that may be eligible for 100% tax relief under the Enhanced Capital Allowance (ECA) scheme for energy saving technologies1. The Carbon Trust manages the list and promotes the ECA scheme on behalf of government.
LED white lighting is listed on the ETL and therefore any installation involving this technology in UK is eligible for ECA tax assistance. To be considered energy-efficient LEDs must meet the following criteria: minimum of 46 lm/W, power factor 0.7+, 80 Ra
These criteria are currently being reviewed.
Please see: www.eca.gov.uk
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