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Service & Maintenance |
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R22 Replacement - The Legislation and Options
What is R22 and why is it being phased out?
R22 is one of the most common refrigerants that are being used in air conditioning, chiller and industrial refrigeration plant applications.
Recent legislation changes has led to the phasing out of this refrigerant as the release of HFC compounds into the atmosphere is harmful to the protective ozone layer.
When will it be phased out?
From 1st January 2004 no more heat pump equipment was manufactured that uses refrigerant R22.
After 31st December 2009, it will be illegal to use virgin R22 refrigerant gas for service and maintenance of air conditioning systems.
From 1st January 2015 the use of all HCFCs including recycled materials will be banned.
Stock piling of virgin and
reclaimed HCFC R22 will also be illegal.
Replacement options
By far the most environmentally responsible solution is to completely replace existing HCFC R22 equipment with modern HFC based alternatives which offer improved energy efficiency meaning lower operating costs.
Energy Efficiency
HFC systems are quieter and more reliable. Many original HCFC R22 systems were cooling only, whereas they can now be replaced with heat pumps offering efficient year round heating and cooling.
Tax incentives
Most replacement systems will attract tax incentives such as Enhanced Capital Allowance.
Enhanced Capital Allowances (ECAs) are a straightforward way for a business to improve its cash flow through accelerated tax relief. The ECA scheme for energy-saving technologies encourages businesses to invest in energy-saving plant as specified on the Energy Technology List (ETL) which is managed by the Carbon Trust on behalf of Government.
The ECA scheme provides businesses with 100% first year tax relief on their qualifying capital expenditure.
The Annual Investment Allowance (AIA) offers 100% tax breaks (equal to ECA) available for most new equipment investments up to £50,000 a year and the purchases do not need to be based on the ETL.
The AIA is effectively a 100% first-year allowance for business expenditure on almost all plant and machinery (apart from cars) capped at £50,000 a year. It is available to businesses regardless of their size or legal form and applies to expenditure incurred on or after 1st April 2008 (for Capital tax) or 6th April 2008 (for income tax).
Cost effective solutions
Building Services Associates will be pleased to survey free of charge your existing R22 equipment and offer a modern cost effective solution.
Information sheet
RAC-8 on Legislative Update and Strategies for HCFC
Phase-out can be obtained from the DEFRA
website.
Interest Free Energy-Efficiency Loans
The
energy-efficiency loans from the Carbon Trust are a
cost effective way to replace or upgrade your old
wasteful existing equipment with a more energy
efficient system.
Small or medium-sized enterprises (SMEs) that meet the
qualify criteria could borrow from £3,000 to
£500,000 depending on the amount and type of energy
saved. It is government funded, unsecured and interest
free.
The loan scheme is designed so that anticipated
energy savings offset the repayments of the loan,
which means the equipment should pay for itself and
you should continue to make savings year on
year.
Applying
is straight forward - further details can be obtained from
the Carbon
Trust
website.
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