Energy Efficiency Incentives (carrots)

Renewable Heat Incentive (RHI), Enhanced Capital Allowance (ECA), Climate Change Agreement (CCA) -  just some of the many different incentives (carrots) available for investment in low carbon, energy efficient boilers and water heaters.

But do you understand the different energy efficiency schemes and the impact on your business and your customers? We explain the basics below and show you where to go to find out more.

Climate Change Agreement (CCA)

Climate Change Agreements (CCAs) allow eligible energy intensive businesses to receive up to a 90% discount from the Climate Change Levy (CCL)—explained in ‘sticks’ section - in return for meeting energy efficiency or carbon saving targets.

Energy Efficiency Financing

Private financing is available under the Energy Efficiency Financing Scheme for businesses and organisations to invest in new energy efficient equipment and low carbon technologies. The scheme has been designed so that financing payments are offset by anticipated energy savings, therefore new equipment should pay for itself.

Also available is the NHS Energy Efficiency Financing Programme from the Green Investment Bank. Projects can include combined heat and power plants, boilers, building retrofits and lighting.

Enhanced Capital Allowance (ECA) Scheme and Energy Technology List (ETL)

The Enhanced Capital Allowance (ECA) scheme aims to encourage businesses to invest in certain energy saving technologies. If you buy equipment that qualifies, you can write off 100% of the cost against that year’s tax profits.

Qualifying products must meet the strict efficiency criteria and be listed on the Energy Technology List (ETL). 

The ECA website includes a searchable product list.

Renewable Heat Incentive (RHI)

The Renewable Heat Incentive (RHI) pays participants for energy generated by renewable sources. Payments vary according to the technology, heat generated and tariff rate, which are reviewed each quarter. There are two types of RHI; domestic and non-domestic. Eligibility criteria and the application process is explained at Ofgem’s non-domestic RHI page.

Regional Incentives

Numerous regional schemes are in place to support businesses investing in energy efficiency and carbon reduction.

These include the London Energy Efficiency Fund, and the Community and Renewable Energy Scheme, (CARES), in Scotland.

Green Grants Machine, provides information on the latest funding available to businesses. Or, to find regional incentives in your area, refer to the Carbon Trust.

Salix Finance

100% interest-free capital is available from Salix Finance to the public sector to improve energy efficiency and reduce carbon emissions.

Find out more at Salix Finance, including details of the Salix Schools programme.

Condition Improvement Fund

For single academy trusts, small multi-academy trusts (MATs) and sixth-form colleges the Condition Improvement Fund offered by the Education Funding Agency is available. It is aimed at improving the overall condition of facilities. More information can be found here.

Feed-In Tariffs

Feed-In Tariffs (also known as FITs) are payments made for generating electricity by renewable means. Most forms of renewable electricity generation, in all sizes up to 5MW, are eligible. Visit Ofgem for more information.

Free Incentives and Legislation Guide

Click here to download your free Hamworthy 'carrots and sticks' guide to energy efficiency incentives and legislation in commerical heating and hot water.

Don’t forget the sticks (legislation) that may impact your next commercial heating and hot water project.

For free advice on product selection and sizing for your next project, get in touch.