Lighting energy efficiency

Tax relief when you invest in energy-saving lighting


The Enhanced Capital Allowances (ECA) scheme encourages businesses to invest in energy saving lighting equipment that meets the performance standards set out in the Energy Technology List (ETL).

Lighting products that meet the ETL standards may be eligible for first year tax relief - meaning that you can write off the whole cost of the equipment against your taxable profits in the year that you buy it.

This can be very helpful for cashflow purposes. It makes sense to get confirmation from your supplier that the equipment meets the ETL criteria before you invest in it.

As an extra benefit, products that meet the ETL criteria are highly energy-efficient and can:

  • reduce your running costs and energy bills
  • reduce Climate Change Levy payments (if applicable)

Lighting equipment eligible under the ECA scheme

Lighting products that are eligible under the ECA scheme include:

  • high efficiency lighting units, such as triphosphor compact fluorescent lamps and fittings
  • lighting controls, such as time controllers and daylight sensors
  • white LED (light emitting diode) lighting units for amenity, accent and display lighting like spot lights

Working out the payback of your investment

Although ECA-eligible products may sometimes be more expensive to buy than their non-eligible counterparts, the tax relief and cashflow benefits help to bridge this price gap. And the lower energy costs of ECA-eligible equipment mean that the investment payback period is typically shorter as well.