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Variable Speed Technology and ECA

Variable Speed Technology and ECA

At the Kyoto Summit conference held in Japan in 1997, the world’s leaders agreed that drastic measures were required to reduce greenhouse gas emissions.

As a means of encouraging UK industry to help towards meeting those targets, the government officially introduced the climate change levy on 1st April 2001.  It is intended to promote energy efficiency within businesses.

As an incentive for companies to invest in energy efficient technologies, the ECA scheme is only applicable on energy efficient products that are listed on the government’s website.  The Avelair rotary screw air compressors use high efficiency EFF 1 motors (standard up to and including 22 kW) and the variable speed drive inverters are listed on this government site and are therefore, eligible for 100% tax relief in the first year.

An enhanced capital allowance allows 100% tax relief on the capital cost of the asset (eg motor or inverter drive) to be obtained in the first year rather than being accumulated over a period of at least 8 years.  This accelerates the relief significantly resulting in considerable cash flow benefits.

Energy efficiency will dramatically reduce overheads.  Every £100 saved on electricity bills go straight to the bottom line profit.

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