Businesses missing out on energy efficiency tax breaks

More than nine out of 10 businesses in the UK are unaware of a government incentive scheme to help improve energy efficiency.

A YouGov survey found 92 per cent of companies don’t know anything about the government’s Enhanced Capital Allowance (ECA) scheme. This has been set up to aid investment in modern energy efficient technology.

Just over two-thirds (69 per cent) of respondents thought their company could be doing more to save energy and reduce costs, with 61 per cent saying that investing in new heating and cooling technology could improve energy efficiency. But 61 per cent also said cost is a barrier for investment in new technology.

Set up by the government in 2001 to encourage the investment in energy efficient technology the scheme provides businesses with 100 per cent first year tax relieve on their capital expenditure on qualifying energy efficiency equipment.

The Daikin commissioned survey said heating and cooling technology is one area where businesses could be failing to improve efficiency, as these costs typically account for 30 per cent of a building’s running costs, making this a prime area to achieve energy and cost savings.