New Financial Benefits for Going Green
The Harrogate District Climate Change Coalition Energy Sub-group are keen to ensure local businesses are aware of this new opportunity to gain a financial advantage whilst reducing their carbon footprint.
New tax incentives announced in the recent budget (the 'enhanced capital allowance' and 'special rate allowance') significantly improve the financial viability of some low carbon investments, such as the purchase of lower carbon commercial vehicles, some energy efficient technologies and some onsite renewable investments. Investing in green technology, not only reduces your carbon footprint, it often also reduces your energy bills, giving you a real financial advantage over your competitors.
The new 'Super Deductions' will enable companies to deduct 50% - 130% of the cost of certain investments made until March 2023 from their taxable income. Claiming this newly wide ranging and high value tax incentive is a smart and easy thing for companies to do because it effectively reduces the payback period for energy saving technologies by up to 3 years.
Examples of how payback periods can improve include:
Solar PV down from 7 years to 4;
LED lighting from 3 years to 1.8;
Energy monitoring and building management systems from 18 months to 2 years down to less than a year.
It has a significant impact for companies who are serious about carbon reduction and energy efficiency and represents a genuine improvement over previous arrangements which only covered some certificated LED lighting. If you have looked at Solar PV in the past and did not proceed because the tariff had been taken away, now is the time to get engaged.
Members of the Harrogate District Climate Change Coalition Energy Sub-group include Energy Oasis and Yorkshire Energy Systems, as well as low carbon energy consultancy Price Wolf Consulting and Techbuyer UK.