The ECA scheme will be closing in April 2020
One of the recommendations is likely to have been that you could save a significant amount of energy (& cost) if you reviewed and replaced your current lighting.
The Dextra Group of Companies have a suite of LED lighting products for all applications and environments. Many are ECA compliant so you can benefit from 100% first year capital allowances which will reduce your taxable profits and offset the cost of the LED lighting and installation. With corporation tax rates already planned to reduce over the next few years, the earlier you order the more tax you save.
What is ECA?
The ECA Scheme for Energy Saving Technologies encourages businesses to invest in energy-saving equipment specified on the Energy Technology List (ETL) which is managed by the Carbon Trust on behalf of the government.
The ECA scheme allows businesses to write off the whole cost of the equipment against taxable profits in the year of purchase. This can provide a cash flow boost and an incentive to invest in energy-saving equipment which normally carries a price premium when compared to less efficient alternatives. The ETL specifies the energy saving technologies that are included in the ECA scheme.
The ETL comprises of two lists:
The Energy Technology Criteria List (ETCL) and the Energy Technology Product List (ETPL). The ETCL defines the performance criteria that equipment must meet to qualify for ECA scheme support; the ETPL is the list of products that have been assessed as being compliant with ETCL criteria. Lighting equipment is an exception to the rule and is not listed on the ETPL; spending on lighting equipment which meets the appropriate criteria in the ETCL can qualify for an ECA. Businesses should therefore seek confirmation from Dextra Group that the specialist LED lighting complies with ETCL criteria prior to purchase.
Reduce your operating costs by choosing Dextra Group products.
Businesses are often tempted to opt for LED lighting with the lowest purchase cost. Such immediate cost savings often prove to be a false economy. Considering the future operating cost of the equipment before investing can help make the right investment decision – one that reduces future expense.
Investing in ECA qualifying LED lighting equipment reduces operating costs. Improved energy efficiency results in lower energy bills, reduced climate change levy payments and shortens payback periods.
So the next time you are thinking about investing in LED lighting, think about the future operating costs – not lowest purchase cost – and see utility bills fall.
Financing with pay as you save
If you wish to utilise ‘pay as you save’ to spread the cost of your new installation, we have a number of finance companies waiting to offer you a finance package (subject to credit checks & credit agreement). You can choose from Hire Purchase or Operating Lease, depending upon whether you wish to ‘on balance sheet’ or ‘off balance sheet’ finance. Do not hesitate to contact us for any further information.