Policy

Reducing demand for energy from industry, businesses and the public sector

Supporting detail:

Energy Technology List (ETL)

If you’re a business that pays income or corporation tax, you’ll be able to claim 100% first year capital allowance on a product if it’s on the ETL at the time of purchase. If it’s been taken off the list, or is added at a later date, you will not.

For more details, see ETL: information for purchasers.

Manufacturers and suppliers: register and apply to add your product to the ETL.

For more details, see ETL: information for manufacturers.

The ETL (or Energy Technology Product List, ETPL) is a government-managed list of energy-efficient plant and machinery, such as boilers, electric motors, and air conditioning and refrigeration systems that qualify for full tax relief. For a product to be on the ETL, it must meet specific energy-saving or energy-efficient criteria. It is part of the Enhanced Capital Allowance (ECA) tax scheme for businesses.

The Department of Energy and Climate Change (DECC) annually reviews the technologies and products that qualify for inclusion. The ETL is managed on behalf of DECC by the Carbon Trust.

Products included

Air to air energy recovery
Automatic monitoring and targeting (AMT) equipment
Boiler equipment
Combined heat and power (CHP)
Compressed air equipment
Heat pumps
Heating, ventilation and air conditioning (HVAC) equipment
High speed hand air dryers
Lighting
Motors and drives
Pipework insulation
Refrigeration equipment
Solar thermal systems
Uninterruptible power supplies
Warm air and radiant heaters

For more details about eligible product types and the amount of energy they save, see the technology factsheets about ETL product types.

Enhanced Capital Allowance (ECA) scheme

The ECA scheme means that a business can invest in energy-saving plant or machinery that might otherwise be too expensive.

The first year allowances let businesses set 100% of the cost of the assets against taxable profits in a single tax year. This means the company can write off the cost of the new plant or machinery against the business’s taxable profits in the financial year the purchase was made.

An ECA is claimed through a business’s income or corporation tax return in the same way as any other capital allowance. HM Revenue and Customs is responsible for the tax-related aspects of the ECA scheme.

Contact

Email: ECAQuestions@carbontrust.co.uk
Telephone: 0300 3300657

Water Technology List (WTL)

The Department for the Environment, Food and Rural Affairs leads on the ECA scheme for water efficient technologies. It publishes the water technology criteria and keeps the Water Technology List (WTL) up to date.

ECAs for cars and refuelling

Besides plant and machinery listed on the ETL and the WTL, businesses can claim ECAs for the purchase of:

  • low-carbon dioxide emission cars
  • natural gas and hydrogen refuelling infrastructure

The attached links to HMRC guidance may be of use:

If you need to speak to HMRC for more detailed advice you can do so via the numbers provided: