Historically energy efficiency has been a hard sell to building owners and investors. However, with the recent energy use concerns and advances in cost-effective technologies, energy efficiency is fast becoming part of real estate management and operations strategy. Systems for control and conservation are a reality for all businesses.
Energy effective systems balance a building’s electric light, daylight and mechanical systems for maximum benefit.
Enhanced lighting design is more than an electrical layout. It must consider the needs and schedules of occupants, seasonal and climatic daylight changes, and its impact on the building’s mechanical systems
Adding daylight to a building is one way to achieve an energy effective design. Natural daylight harvesting can make people happier, healthier, and more productive. And with the reduced need for electric light, a great deal of money can be saved on energy. Nearly every commercial building is a potential energy saving project, where the electric lighting systems can be designed to be dimmed with the availability of daylight. Up to 75% of lighting energy consumption can be saved. In addition, by reducing electric lighting and minimizing solar heat gain, controlled lighting can also reduce a building’s air conditioning load.
Greenhouse gas emission reductions are due to decreases in energy use. This should continue to reduce further as higher energy savings are realised.
Legislation and environmental standards, safety regulations, and indoor air quality standards are a potentially strong element in favour of this technology.
Government Initiatives from the Carbon Trust also allow Enhanced Capital Allowance (ECA) on taxation on energy efficient systems saving around 30% of all equipment and associated install / design cost.
Enhanced Capital Allowance Scheme
Announced by Chancellor Gordon Brown in November 1999 Pre-Budget report
Businesses can claim 100% first year capital allowances on investments in qualifying energy saving technologies
Businesses can write off whole cost of investment against taxable profits
Scheme is developed by DEFRA and the Inland Revenue and managed and promoted by Carbon Trust
Scheme initiates carbon savings
Provides fiscal incentive to users
Energy efficient equipment can potentially provide savings through future energy bills
Ordinary capital allowances can save £7.50 for every £100 spent per annum (assuming company pays tax on profits)
100% first year allowances save £30 for every £100 spent (Assuming company pays tax on profits at 30%)
All allowances due in the first year, therefore greatest effects of the scheme are on cash flow.
Please contact us for further information or assistance