Government Incentives to Upgrade to Energy Efficient Lighting

Government Incentives to Upgrade to Energy Efficient Lighting

Government Incentives to Upgrade to Energy Efficient Lighting

If you’re looking for help upgrading your business to energy efficient lighting, we’ve got good news for you—there are a number of government-funded energy efficiency incentives and LED light bulb rebates available to you.

Finding the right government incentives for energy-saving technologies for your business is a daunting task. There’s a lot of information to read, a lot of products to sift through, and some confusing language to decipher if you aren’t well-versed in the terminology. Searching out reliefs, trusts, tax credits, or other funding that applies to your business—as well as the equipment that qualifies—may seem like more trouble than it’s worth, especially if you don’t have a team member or contractor on staff to do it for you.

Here’s some more good news—there are energy efficiency experts who can help you understand and claim the incentives available to your business, providing you with significant savings and a higher return on your energy efficient investment.

Enhanced Capital Allowance Scheme for energy-saving technologies

The Enhanced Capital Allowances (ECA) scheme was created and implemented to encourage companies to select energy efficient lighting options that meet Energy Technology List (ETL) criteria in exchange for a tax allowance.

Under the ECA scheme, you can write-off up to 100% of the cost on your taxes in the year you purchase brand new (not used) equipment that qualifies.

According to the Energy Technology List Lighting Guide

In the case of lighting, three types of lighting are covered by the scheme:

  1. White LED lighting modules for backlit illuminated signs – In common with many other technologies, white LED lighting modules for backlit illuminated signs are a “listed” technology. For a product to be ETL compliant (and therefore eligible to claim an ECA), it must be specifically listed on the ETL product list. To be included on the list, manufacturers apply and are assessed for compliance with the ETL criteria by the scheme managers.
  2. Efficient White Lighting Units
  3. Lighting Controls (such as presence detectors, daylight sensors, time controllers and scheduling systems)

Efficient white lighting units and Lighting controls are “unlisted” technologies. This is mainly because there are too many individual product combinations on the market, with rapidly changing product ranges, for product listing to be effective.

For unlisted technologies, it is up to the supplier to provide the customer with confirmation that the product meets the current ETL criteria at the time of sale.

Products must be compliant with the ETL criteria at the time of purchase in order to qualify for an ECA. Please contact the Lightbulb Company to discuss our range of LED Lighting panels and LED fittings that would qualify for the Enhanced Capital Allowance Scheme.

Non-lighting equipment that qualifies includes energy efficient:

  • Boilers
  • Monitoring equipment
  • Refrigeration equipment

PRO TIP: While equipment and products that meet the ETL criteria may be more expensive—especially because they need to be purchased new—by installing and using energy-saving equipment, you will:

  • Reduce your energy bills
  • Cut down any Climate Change Levy (CCL) payments your business may have been paying—learn more about environmental taxes, reliefs and schemes for businesses, including CCL.

This will save you money in the long run and lead to a relatively quick return on your investment.

National & regional funding

For more information about government incentives or other types of funding provided by trusts, partnerships, and grants to small-to-medium sized businesses who are making the switch to energy-efficient equipment, reducing their emissions, and other green initiatives—or to apply for them—check out these links:


  • Carbon Trust Green Business Fund – England, Scotland, and Wales
  • Energy Saving Trust – Scotland


  • The Business Energy Efficiency Programme – West Midlands
  • Business Energy Efficiency Anglia (BEEA) – Suffolk & Norfolk
  • Business Energy Efficiency Cambridge and Peterborough (BEECP) – Cambridge & Peterborough
  • Sustainable Business Partnership CIC – East Sussex
  • The Low Carbon Across the South-East (LoCASE) – Sussex, Kent, and Essex


Still not sure what your company is eligible for or which products to select? Reach out to one of our lighting design experts. They will be glad to assist you with selecting products and discovering tax reliefs and saving opportunities relevant to your specific needs.

Learn more about the ETL.

For more information on the ECA scheme:

  • For tax questions regarding ECA, visit the HM Revenue & Customs website
  • Search for a product on the ETL here

Need help? Call our energy efficient lighting design experts. With over twenty years of experience, we have supported businesses of all types in both the public and private sector throughout the UK to make the switch and reduce their energy costs.

Learn more about the Lightbulb Co.’s energy efficient lighting services.

Read More

Keep reading to learn everything you need to know about installing or upgrading to energy efficient lighting.

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