The Carbon Trust & Enhanced Capital Allowances

Looking for an unsecured, interest-free credit loan to get your energy efficiency project off the ground? Want 100% tax relief on capital expenditure on your energy saving solutions?

The UK's Carbon Trust recently received £100 million of new funds in the government's inaugural carbon budget to help your business move forward with energy efficiency projects such as low-energy lighting which will save you money and reduce your business's carbon footprint.

• Unsecured Interest-Free Loans
• The Big Business Refit
• Enhanced Capital Allowance

The Carbon Trust is an organisation created by the UK government to help businesses and other organisations reduce their carbon footprint by reducing CO₂. They have been tasked to provide help through their support of energy-saving projects and education into energy-efficiency. The primary goal of the Carbon Trust is to 'accelerate the move to a low carbon economy', as their mission states.

For an overview on how the Carbon Trust can assist your business by saving you money through interest-free loans, you should download our Carbon Trust Factsheet by clicking here.

Unsecured Interest-Free Loans from the Carbon Trust

Eluma at Concorde's Eco-Hangar

Part of the Carbon Trust's funding remit is to help businesses to finance energy-saving technology and they offer interest-free credit loans on equipment that is on the list of technologies approved by them - the Energy Technology List, or ETL. Somar Eluma* is on the ETL as an approved method of reducing your carbon footprint through the use of efficient low-energy lighting, and Somar Clarus** is also listed as a great way of reducing electricity costs in commercial refrigerators.

UK-based Small and Medium Businesses (SMEs), or any business not part of the Carbon Reduction Commitment scheme, may apply for loans from £3,000 to £500,000, with the amount loaned related to the Carbon Trust's projection of the project's carbon reduction. The interest-free loans are unsecured, have no arrangement fees and are repayable to the Carbon Trust over a four-year period.

Many of our customers have benefited from Carbon Trust interest-free loans and find that the monthly re-payments are often a lot less than the monthly savings that our technology delivers. This means positive cash-flow right from the start.

For example, the Carbon Trust guide for eligible lighting equipment cites slimmer T5 lighting with appropriate controllers to save around 50-65% - Somar Eluma can save up to 80% of your lighting costs. Check out our case studies on low-energy lighting, motor control and refrigeration control for more information.

Every applicable energy audit that we produce will include an illustration of the Carbon Trust monthly payments and we can give you advice at every stage of the application process.

If you would like to assess whether your organisation is eligible for a Carbon Trust unsecured interest-free loan, please contact us.

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* The ETL is currently rebuilding its list of lighting products, which is why it currently displays no High Efficiency Lighting Units. Somar Eluma is, however, on the offline ETL list which the Carbon Trust works from, by conforming to the Energy Technology Criteria List.

** Somar Clarus is present on the ETL under its previous name of Powerboss Clarus.

The Big Business Refit

The Big Business Refit is a scrappage scheme for power-guzzling equipment.

The Big Business Refit is the Carbon Trust's latest campaign to encourage companies to replace old, inefficient equipment with new low-carbon, energy-saving alternatives. £40 million is available in interest-free loans as part of the scheme, with the application criteria and process as detailed above.

Theo Paphitis launching the Big Business Refit with a check to star energy savers Roberts Mart & Co., who installed Somar Eluma energy efficient lighting.

One business that has already saved by scrapping its old equipment is Yorkshire-based Flexible Packaging Printers, Roberts Mart & Co Ltd. As well as core equipment refits, the company also installed Somar Eluma energy-efficient lighting in their warehouse, delivering substantial energy savings along with vastly improved light levels.

Ben Roberts, Sales Director, said: “We’ve taken advantage of two Carbon Trust loans, totalling over £300,000, to replace printing press drying systems, a boiler and lighting.  As a result, we’re saving around £130,000 a year on our energy bills, plus around 900 tonnes of CO2.  The Carbon Trust loans scheme has been a simple and effective way for us to modernise our business, and reduce costs in the recession.”

If you would like to assess whether your organisation is eligible for a Carbon Trust unsecured interest-free loan, please contact us.

Alternatively, you should download our Carbon Trust Factsheet by clicking here.

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Enhanced Capital Allowance - Energy-efficiency tax relief

As well as offering interest-free loans, the UK Government also offers an Enhanced Capital Allowance (ECA) as another incentive for businesses to invest in energy efficiency. Under the ECA scheme, businesses can claim an 'enhanced' 100% capital allowance on qualifying investments in equipment in the first tax year.

Normal capital allowances on plant and machinery are 20% a year on a reducing balance basis. A company which pays 28% corporation tax would save an extra £224 for every £1,000 spent under the scheme in the purchase year, so the scheme boosts cash flow and shortens the payback period.

As well as the raw cost of the energy efficiency products installed, the ECA can also cover some installation costs and product transport costs.

Somar products are covered by the Enhanced Capital Allowance scheme - view our case studies to see how we can save your business money.

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