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Reznor energy efficient heating systems offer a considerable number of benefits to end user customers these include:
- Reduced running costs – savings of up to 60% can be achieved
- Even heat coverage at low level
- Controllability – systems can be easily controlled to provide varying zoned temperatures and operating times
- Minimal heat losses through the roof of the building
- Good aesthetic integration within the building
The appeal of Reznor solutions is further enhanced by the availability of Enhanced Capital Allowances ,a government tax incentive scheme encouraging business to purchase products with greater energy efficiency.
1. Why have Enhanced Capital Allowances been Introduced ?
To offer business an effective means of both neutralising the impact of the Climate Change Levy (a business tax on the use of energy sources) introduced in 1991 and an incentive to adopt a more environmentally conscious approach when deploying energy resources. |
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2. What financial benefits are derived by claiming ECA’s?
100% capital allowances in the first year, including the costs of installation.
Improved cash flow.
Taxation reduced in the first year.
Improved profit after tax. |
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3. Does warm air and radiant space heating qualify for ECA’s?
Yes, as of August 2002 high efficiency warm air and radiant heating systems are included as long as they meet the necessary efficiency criteria, and have been independently verified by an approved body. |
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4. What is the inclusion threshold for warm air heating?
All units must have a minimum net thermal efficiency of 89%.
(Note In 2004 the proposal is to increase this to 91%, with additional consideration given to a ‘seasonal efficiency’). |
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5. What is the inclusion threshold for radiant heating?
Individually flued (or unflued) systems that achieve a net thermal efficiency of 86%.
And in addition have a radiant efficiency of 60%.
Multiburner or continuous systems that achieve a net thermal efficiency of 90%.
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6. What impact will ECAs have on purchasing capital equipment?
Quite simply buying energy efficient systems will now cost less than standard efficiency options.
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Standard Efficiency Equipment |
High Efficiency Equipment |
| Capital cost (inc installation) |
| Fuel costs |
| Climate Change Levy |
| Less Capital Allowance |
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| £37,250 |
| £15,900 |
| £1,988 |
| £2,800 |
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| £44,000 |
| £14,700 |
| £1,838 |
| £13,200* |
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| TOTAL |
£52,338 |
£47,338 |
Notes..
Fuel costs based on 1600 hrs per annum.
Fuel cost used for illustration 1.2p/kW.
Installation costs from actual data.
Based on Corporation Tax rate of 30%
* 100% capital allowance to be claimed in the first year including the costs of installation. |
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7. What Reznor products qualify for ECA ? (subject to final verification by The Carbon Trust)
ECCO 5000/H30000 condensing unit heaters.
V3 warm air unit heaters.
Euro-C 4000 warm air unit heaters.
T2000 A/B/E warm air unit heaters.
Europak/RPV warm air heating systems.
RHC gas fired heating coils.
RAR series radiant tube heaters.
High efficiency cabinet heaters
Oil fired unit heaters
T2000D and RPV2000D duct heaters
Thermacool gas fired heaters c/w DX cooling coil
Direct fired make up air heaters |
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8. Where is more information available on CCL programmes and ECA’s ?
Environment and Energy Helpline 0800 585794
www.actionenergy.org.uk
For more details email us via our contact form |
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Introduced in April 2001, the Climate Change Levy (CCL) is essentially a business tax on the use of energy sources that contribute to greenhouse gases and other polluting emissions.
A
business tax on the use of energy sources.
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Why
impose a levy?
Following the recommendations in Lord Marshall's 1998
report on economic instruments and the business use of
energy, the Government decided that a tax on energy would
be an effective way of promoting reductions in its use. |
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Why
restrict the use of energy?
Following the Kyoto Climate Change Conference, the UK
Government entered into a legally binding commitment to
reduce the UK's total greenhouse emissions by 12.5% below
1990 levels, by the period 2008 to 2012. A domestic goal
of 20% reduction in Carbon Dioxide emissions by the year
2020 was also set. |
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The
Government has undertaken a commitment to reduce greenhouse
emissions. |
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Only
domestic and transport sectors are exempt from the tax.
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How
much is raised by the Climate Change Levy and how is it
used ?
It is estimated that approximately £1.0 billion
per annum is raised.
The tax is intended to be fiscally neutral, being recycled
back to business by cutting employers National Insurance
contributions (NIC) by 0.3% and funding energy efficiency
initiatives. |
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All
other sectors of the economy are required to pay a levy
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What
is the structure of the levy ?
Levy
on electricity 0.43 pence per kWh
Levy
on natural gas*, coal 0.15 pence per kWh
Levy
on LPG 0.07 pence per kWh
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*The
levy on natural gas does not apply in Northern Ireland.
Note : Oil, good quality CHP schemes and renewable energy
resources are exempt from the levy |
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This
represents a 20% increase on gas bills based on average fuel
prices.
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What
can the Reznor do to reduce the impact on business costs
?
Help you prepare an energy audit and action plan which
will identify various measures for
reducing energy use.
Supply energy efficient products that provide 100% capital
allowances in the first year under the Enhanced Capital
Allowances scheme. |
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Clearly,
businesses that are energy intensive and employ few people will
see a net
increase in energy costs. |
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