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Achieving energy and cost savings with the Energy Technology List

13 March 2020

Facilities managers can create a strong business case for investing in energy efficient equipment with the Energy Technology List.

The Energy Technology List (ETL) is a simple tool to help organisations discover energy efficient equipment. The products featured on the list have been independently verified to demonstrate a high standard of energy efficiency – typically the top 25 per cent of products in the market place.

This provides businesses with the confidence that they are buying efficient equipment. Currently the list features approximately 14,000 of the most energy-efficient products across 56 technology categories.

When it comes to buying new equipment, FMs are looking beyond up-front capital costs to consider total cost of ownership.

This is why the ETL has become an integral part of the procurement processes for many large businesses and public sector organisations.

"We looked at the potential annual savings when installing a refrigeration system controls upgrade to evaluate the kind of energy savings that could be made by integrating the ETL into a business’ procurement process," says The Carbon Trust.

"When installing equipment at a commercial site running 8 evaporators and one cold room, the potential savings that could be achieved in a year roughly comes to £2,900, 26,200 kWh, and 9.2 tonnes CO2.

"Due to the rigorous standards and testing processes, users of the ETL can be confident that they will achieve operational savings using these products when compared to less efficient alternatives."

Improving levels of energy efficiency helps organisations reduce operating costs and energy bills, resulting in a shortened payback period for new equipment and strengthening the business case for action.

A further benefit to the use of energy efficient equipment is the ability to reduce CO2 emissions, helping companies to combat climate change and meet required internal or external sustainability targets.

Not only can organisations benefit from the energy and cost savings, but also businesses can use the ETL when designing energy-efficient features for new or existing buildings. By selecting equipment from the ETL, organisations can contribute towards achieving a SKA rating or BREEAM certification.

For example, to comply with SKA (a rating that assesses good practice measures in retrofit projects in a variety of categories, such as water, waste and energy) a key component involves the procurement of energy efficient products.

Organisations are required to either procure equipment listed on the ETL or equipment that meets ETL criteria.

Facilities professionals can further strengthen the business case for investment in ETL listed equipment by taking advantage of the accompanying accelerated tax relief scheme, the Enhanced Capital Allowance (ECA).

The ECA enables businesses who purchase ETL listed products to claim accelerated tax relief on their taxable profits.

The ECA runs until April 2020 so it is a key time for organisations to factor the ETL and ECA into their procurement processes.

However, it is important to note that the government currently has no plans to stop the ETL in April and the list will continue to run as a trusted resource for facilities managers and premises professionals.

For organisations still looking to claim tax relief for their purchases beyond April, the Annual Investment Allowance has been raised to a cap of £1,000,000 for two years from January 2019.

Therefore, businesses will still be able to claim accelerated tax relief in the year of purchase for energy efficient equipment.

More information on the ETL is available here.

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