Budget reveals eight new technologies for ECA scheme

Eight new categories of energy-saving equipment will probably be added to those qualifying for Enhanced Capital Allowances (ECAs), following an announcement in last month`s Budget. The Chancellor`s statement also proposed amendments to seven technologies already included in the list of qualifying technologies.

There are no additions or changes in the areas of motors or variable speed drives. The proposed new categories include ultrasonic leak detectors and refrigerant dryer controllers for compressed air systems. Other proposed additions include commercial refrigerated cabinets, cellar coolers, packaged chillers and free-cooling forced air pre-coolers for refrigeration systems.

The enhancements to the ECA scheme were suggested by the Carbon Trust, which manages and promotes the scheme, following consultations with industry. Because the proposals involve state aid, they have to be approved by the European Commission. If this approval is forthcoming, the new categories will be added to the Energy Technology List during the summer.

The Trust is urging manufacturers to submit applications for products in the new categories to be included in the List and, where necessary to re-apply under the amended criteria for currently listed products. Details of the proposed changes can be found on the ECA Web site.

The ECA scheme allows buyers of qualifying energy-saving equipment to claim 100% capital allowances on their investments.