Energy efficiency by machinery or electrical equipment businesses
Machinery or electrical equipment and electronics (EEE) businesses may use energy-intensive equipment or machinery to assemble or service machinery or EEE, or carry out energy-intensive activities such as manufacturing components.
You may be able to save money and reduce your impact on the environment through better energy use.
By using less energy you can:
- save money on your fuel bills
- help to combat climate change
- improve your reputation with staff, customers and the public.
What you must do
Get an energy performance certificate
If you sell, let, construct or refurbish a building, you must obtain an energy performance certificate (EPC). This includes domestic, commercial and public buildings.
The certificate gives the building an A-G energy efficiency rating and recommends how you can improve the energy rating of the building.
See our guidance on energy performance of buildings in:
England on Business Link: Improve the energy performance of your buildings
Northern Ireland on NIBusinessInfo: Improve the energy performance of your buildings
Scotland on Scotland.gov.uk: Introduction to energy performance
Wales on Business.Wales.gov.uk: Improve the energy performance of your buildings
Comply with energy labelling and ecodesign requirements
If you manufacture or sell household electrical equipment, you must label your product with its energy efficiency rating.
If you manufacture or import certain energy-using products, you must make sure that their design meets ecodesign requirements.
Energy labelling and ecodesign for energy-using products
Light bulbs and lamps
Good practice
Benefit from enhanced capital allowances
If you invest in certain types of energy-saving equipment and machinery you can qualify for enhanced capital allowances. These allow the whole cost of your investment to be offset against taxable profit in the year you bought the equipment.
For more information on tax breaks available for energy efficiency investments contact the Enhanced Capital Allowance Scheme.
Enhanced Capital Allowance Scheme
Check if you can claim an exemption or discount from the climate change levy
Your business may be exempt from the climate change levy or entitled to a discount if you meet energy efficiency targets set out in a climate change agreement. Find out more about exemptions or discounts in our guidance on the Climate Change Levy in:
England on Business Link: Climate Change Levy
Northern Ireland on NIBusinessInfo: Climate Change Levy
Scotland on Business Gateway: Climate Change Levy
Wales on Business.Wales.gov.uk: Climate Change Levy
Trade associations that have negotiated climate change agreements for their members include:
- Metal Packaging Manufacturers Association
- National Microelectronics Institute (for cathode ray tube and semi-conductor manufacturers)
- Society of Motor Manufacturers and Traders
- Surface Engineering Association.
Check if your industry is covered by a CCA negotiated by your trade association by visiting the Department of Energy and Climate Change (DECC) website.
DECC: Climate change agreements - umbrella agreements
You might be excluded or exempt from the climate change levy if you, for example:
- use small quantities of energy, eg less than 1,000 kilowatt hours per month
- are a registered charity using energy for non-business use
- use energy from renewable sources such as solar and wind power.
Ask to see the energy performance certificate
If you are moving premises, either buying or renting a building from someone else, you should make sure you receive an energy performance certificate (EPC) for the building from the seller or your landlord. This includes domestic, commercial and public buildings.
The certificate gives the building an A-G energy efficiency rating and recommends how you can improve the energy rating of the building. The ratings are standard, so you can compare the energy efficiency of one building with another building of a similar type.
See our guidance on energy performance of buildings in:
England on Business Link: Improve the energy performance of your buildings
Northern Ireland on NIBusinessInfo: Improve the energy performance of your buildings
Scotland on Scotland.gov.uk: Introduction to energy performance
Wales on Business.Wales.gov.uk: Improve the energy performance of your buildings
Save money by reducing your energy use
Review the energy your business uses. Look at your business activities and think of ways that you could save energy. Find out more about energy management and carbon surveys from the Carbon Trust.
Carbon Trust: Our services
Review the amount of energy that your business uses and compare it with industry standards. Your trade association can help you find this information.
Get advice on energy efficient design and technology when you build new facilities or carry out extensions and major upgrades.
Raise awareness among your staff about the cost of energy. Ask them to help you find savings. Get them involved in monitoring energy use.
Energy efficiency tips
For more information about how to measure and report all your greenhouse gas emissions see Defra’s guidance for small businesses.
Defra: Small Business User Guide on how to measure and report your greenhouse gas emissions (Adobe PDF - 257KB)
