Dear Carbon Trust: why do end-users “mistrust energy claims”?

Last year our business; Logicool, conducted a survey into the understanding and take-up of Enhanced Capital Allowances as influenced within the Air Conditioning industry.

More specifically, we questioned the installing contractors in order to gather their knowledge and opinions of the scheme.

Those questioned were small to medium sized contractors. Typically no more than ten people in a business selling, promoting and installing HVAC products to end-user businesses.

We expected there to be a general lack of knowledge as we ourselves had concerns over the communication of the changes to the scheme. What we did not expect was a universal lack of knowledge (amongst our surveyed group) to how the scheme was delivered. Not one contractor questioned could accurately identify how to check if a product was on the approved ECA list. Of more concern was the feedback that there was a genuine concern over how to deliver tax saving advice to the end-user.

Our results are ready to publish, and have for some time been preserved within LinkedIn ready to post as a blog. However, I remain concerned over the wording to ensure the following subject matter is correctly reflected.

a) Logicool protect the image of The Carbon Trust and their promotion of Low Carbon Technologies

b) I promote the Enhanced Capital Allowance Scheme within the blog

c) The article provides constructive feedback as to our and our client’s concerns over the scheme.

Today, The Cooling Post has published an article regarding a survey The Carbon Trust undertook with a number of end-users. “The survey reveals that just 5% of those with responsibility for procuring energy consuming equipment for their organisations are very confident in the energy saving claims made by manufacturers, with a quarter (24%) not confident at all. One in three stated that a lack of credible information about equipment was a significant barrier to improving their organisation’s energy efficiency”.

This article has prompted me to release our findings asap but also to write this introductory blog.

Logicool made their findings known to The Carbon Trust. We made them aware of our concerns and asked some pertinent questions as to how the scheme is delivered and how we could help to promote it better. The feedback was acknowledged and we were asked to wait as they had a new campaign which they felt would alleviate the issue. The campaign that followed was another leaflet which we felt did not address the issue at all.

So what is the issue? Why are end-users either unaware of untrusting of the scheme?

We cannot answer all of the questions but we believe that one factor is that the government are effectively using installing contractors as Tax Advisers. Manufacturers and large contractors may well have had some success in making larger end-users aware of the ECA scheme but what of the remaining SME’s? How is the scheme delivered? TV Advertising? Magazine Advertising? Business Link? Accountants? Wait….Business Link has gone and my own accountants have their own concerns over the way these schemes are delivered to them.

Put simply, an installing contractor is expected to advise a purchasing end-user of a government backed scheme that promotes the purchase of energy-efficient Capital Plant as well as providing tax efficiency to their businesses. They need to understand that the product they are promoting is currently approved under the scheme, how to advise the customer to make a claim on their annual tax return, ensure that the purchasers business is eligible  by taking into account nett profitability (will they make a loss or make a profit less than the total of the installation?) or if the business is a not for profit organisation.

Our survey results clearly demonstrate a reluctance from our surveyed customer base to promote the scheme largely based on the above.

HVAC contractors (as well as other trades) have a tough enough job selling equipment to their customer base in the current economic climate. Is it really reasonable to expect them to be business owners, sales people, refrigeration engineers, air conditioning engineers, ventilation experts, commissioning engineers, electrical engineers, service engineers, plumbers and tax advisors?

Who am I to criticise?  I am the MD/Proprietor of a successful SME. I have Air to Water Heat Pumps, Air Conditioning and 12kW of Solar PV installed in my business. I also have over 25 years experience in advising customers in the HVAC industry as well as dealing closely with manufacturers for most of that time.

I am a business owner with some expertise in my field. I also like hugging the odd tree now and then hence my passion for energy-efficient products. My business doesn’t need ASHP and Solar PV for any other reason than I like to practice what I preach, to satisfy my own green beliefs.

However, as a business owner I can categorically state that I have never had the ECA scheme made aware to me via anyone other than the Air Conditioning manufacturers that I work with on a daily basis.

Carbon Trust – please start delivering the message loud and clear to SME’s that Enhanced Capital Allowances are a wonderful thing.

Businesses can spend more money on capital plant and ultimately pay less over a very short period.

This is a fact that I am willing to promote on your behalf. But please don’t expect our installer network to deliver this message.