Energy Efficient Lighting Equipment

One of the key components in determining the efficiency of a lighting installation is the lamp type used - hence a significant amount of research is allocated to the development of new and improved types of lamps and associated control gear.

The results of such R & D can be illustrated by the history of fluorescent lamps where maintained circuit efficacies have increased significantly over the years, by 64% between 1950 and 1970 and by 97% between 1970 and 2000 - yet many of today's new lighting installations comprise the less efficient types of fluorescent lamps and control gear.

Maintained circuit efficacy includes the power, in Watts consumed by the lamp and associated control gear together with the depreciation in light output of the lamps during their service life. The significant increase in efficacy since 1950 is a combination of improved lamps and more efficient control gear, especially the high frequency ballasts. Other benefits offered by today's fluorescent lamps include improved colour rendering properties and service lives up to seven times those of lamps in 1950.

Many new and improved lamp types have been introduced, including compact fluorescent, high-pressure sodium, metal halide and CDM; each providing opportunities to reduce energy consumption by lighting in those applications for which they are best suited.

The most efficient lamp types, associated control gear and luminaires for most interior and exterior lighting applications together with appropriate types of lighting controls are included in the Lighting Section of the Energy Technology List (ETL)

Estimates of the energy and financial savings possible by using the more efficient lighting technology. and by installing lighting controls can be obtained by using the downloadable Light switch calculators

The Enhanced Capital Allowances Scheme

Capital allowances allow the costs of capital assets to be written off against a business’s taxable profits. They take the place of depreciation charged in the commercial accounts, which is not allowed for tax. The main rates of allowances for expenditure on plant and machinery are: -

• 25% a year on the reducing balance basis for general spending on plant and machinery
• 6% a year on the reducing balance basis for plant and machinery with a useful economic life when new of more than 25 years (long-life assets).

In April 2001 the Government introduced 100% first-year capital allowances for energy-saving investments (also called the Enhanced Capital Allowance (ECA) scheme) to help promote the uptake of energy efficient technologies. A business can claim the allowances if it incurs qualifying expenditure on designated energy-saving plant and machinery.

Lighting equipment is included in the ECA Energy Technology List. There are two key tests that need to be satisfied before a claim to the allowances can be made: -

• The lighting must qualify for capital allowances - it must be "plant or machinery", and
• The lighting must be qualifying "energy-saving lighting".

Lighting is not "machinery" so expenditure can qualify for capital allowances only if the lighting is "plant". The Inland Revenue has published guidance on "plant" and "lighting" in its guidance on the ECA scheme >>

Businesses that invest in energy efficient technologies, including lighting, that qualify for the Enhanced Capital Allowance can claim 100% first-year capital allowances on their investment, delivering a cash flow boost and shortening the payback period on the investment.

Technologies that qualify under the ECA scheme are energy efficient, which means significant long-term financial benefits in addition to the tax benefits. Investing in energy efficient lighting reduces energy cost, Climate Change Levy payments and climate change impact.

ECA's can be claimed on 100% of the businesses’ qualifying capital expenditure in the year in which it is incurred. The company making the ECA claim can reduce its taxable profits of the period of the investment by 100% of the qualifying expenditure incurred on the provision of the qualifying equipment.

For example, on equipment costs of £ 10,000, the company can reduce its taxable profit by £10,000, and makes a first year saving of £3,000, assuming Corporation or Income Tax is chargeable at 30%.

Information on the ECA scheme can be found at: www.eca.gov.uk

Energy Technology List (ETL) of the Enhanced Capital Allowances (ECA) Scheme.

Expenditure can qualify for the allowances if it is on the provision of the energy-saving plant or machinery. Expenditure on the provision of plant or machinery can include not only the actual costs of buying the equipment but other direct costs such as the transport of the equipment to site and the direct costs of installation of the equipment.

The Energy Technology List lists equipment over a range of technologies, including lighting that has been assessed as energy efficient.

In addition to conformity with the usual standards for safe operation, the lighting equipment is required to meet specific performance levels:

• Lamps: are specified by description, type and rating; the nominal initial lumens (100h) are those published by the principal manufacturers.

• High frequency control gear for linear and compact fluorescent lamps: complies with the performance standards required for CELMA classifications A1, A2 or A3. Reputable manufacturers of high frequency ballasts usually mark their products with the relevant class code.

• Luminaires (lighting fittings): to ensure that the benefits of energy efficient lamps and control gear are not cancelled by the use of inefficient luminaires, the minimum luminaires efficiency for each lamp type is given by a Code (LFEC), e.g. Max. LFEC value = F4. The LFEC Codes for interior luminaires can be determined from the Utilisation Factor tables provided by the manufacturers or, if this is not available, from the downward and upward light output ratios - also provided by the luminaires manufacturers. See Determining the LFEC

• Lighting controls: essential if energy is not to be wasted by unnecessary use of the lighting when not required, are included in Table 10 of the www.eca.gov.uk Lighting Section of the ETL.

Building Regulations – Energy Efficiency Requirements of Lighting

These are included in:

- Part L of the Building Regulations 2000 as amended October 2001 for England and Wales,
- Part J of the Building Standards in Scotland as amended March 2002.

In both cases: ‘The aim of the Regulations is to improve the overall energy efficiency of lighting installations without limiting the quality of lighting design’.

England and Wales Part L

The lighting regulations for compliance with Part L are divided into two sections:

- L1(c) for dwellings,
- L2(g) for buildings or parts of buildings other than dwellings.

Part L1, Dwellings: The requirement is for the reasonable use of appropriate energy efficient lamps and, in exterior locations where fittings are attached to the building, either to use energy efficient lamps or the use of controls to switch lights off when not required. Full details are given on pages 17 and 18 of Approved Document L1

Part L2, Buildings or parts of buildings other than dwellings. L2(g) covers those with a floor area of over 100m2; the requirement is to provide lighting systems that are energy efficient, have the opportunity for good energy management and have been properly commissioned. Detailed requirements are given on pages 21, 22 and 23 and Appendix F of Approved Document L2

Note that L2 also applies when replacing or renovating old lighting systems in over 100m² of floor area.

Scotland.

Part J of the Technical Standards for compliance with the Building Standards (Scotland) Regulations 1990 - Sixth Amendment. The regulations with respect to lighting apply to all building types included in Purpose Groups 2 to 7 as detailed by Schedule 3 in Building Regulation 6 excepting those with a floor area of less than 100m². Part J6.1 of Technical Standards

Note that these standards also apply when replacing or renovating old lighting systems in over 100m² of floor area.

These regulations do not apply to building types included in Purpose Group 1: Dwellings.

N.B. "Installer's lighting guide No.4 - Lighting requirements for Part L of the Building Regulations for England and Wales" and "Installers lighting guide No.5 - Lighting requirements for meeting the Technical Standards for compliance with the Building Standards (Scotland) Regulations 1990 - Sixth Amendment" are available from BRECSU. Telephone: 0800 585794.

Interest Free Loans from Action Energy

Call help line on 0800 585794 or visit Action Energy’s web site: www.actionergy.org.uk.. Loans of between £5000 and£50,000 are available, repayable over 4 years. The loans are available to SME's in England and Wales wishing to invest in energy efficient lighting.

Back | Top