Environmental guidance for your business in Northern Ireland & Scotland

Financing loans and tax incentives for energy efficient equipment

Finance and tax incentives

You may be able to reduce energy consumption and save money by updating your equipment.

Green finance

The Carbon Trust offers leases, loans and other financing options for businesses seeking to reduce their energy use. New, more efficient equipment should lower your energy bills and loan payments are calculated so that they can be offset by the anticipated energy savings.

Carbon Trust: Finance for energy saving products

Energy Saving Trust Scotland: Small business loans

Resource Efficient Scotland: SME loan fund

NI Small Business Loan Fund

Tax incentives

There may also be tax incentives available if you invest in energy saving technologies and products. The Enhanced Capital Allowance scheme (ECA) lets you claim 100 per cent first year capital allowances on investments of qualifying equipment. You could write off the whole cost of your investment against your taxable profits for the period in which you make an investment.

Some energy efficient and renewable materials also qualify for reduced rates of VAT. For example, installing energy efficient central heating systems, solar panels and insulation all qualify.

Equipment and technologies that qualify for the ECA scheme - provided they meet the scheme's requirements - include:

  • air-to-air energy recovery
  • automatic monitoring and targeting
  • boilers
  • combined heat and power
  • compressed air equipment
  • heat pumps for space heating
  • heating, ventilation, and air conditioning zone controls
  • lighting
  • motors
  • pipework insulation
  • refrigeration equipment
  • solar thermal systems
  • thermal screens
  • variable speed drives
  • warm air and radiant heaters.

The Energy Technology List contains further details of the plant and machinery that qualifies for the ECA scheme.

Carbon Trust: Energy technology list

Looking to install energy efficiency or renewable energy technology?

The Carbon Trust provides information that includes lists of accredited suppliers, guidance on energy saving technologies and how you can finance installation.

The Carbon Trust: Green Business Directory

Further information

Environmental tax breaks and obligations

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Permits

NIEA - Apply online

SEPA - Application forms