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Energy management refers to the methods that businesses and homeowners use to reduce energy-related costs and reduce their carbon footprints. Rudimentary techniques such as limiting gas or electricity consumption during certain hours have been routinely used in commercial and domestic properties for decades, but this oblique method provides no information relating to energy consumption and usage. Smart metering is the widely-accepted solution to this problem, providing insights into the minutiae of energy consumption and providing actionable data for individuals in every sector to reduce their energy costs and wastage.
Energy management smart meters provide automated and highly accurate readings of electricity and/or gas usage. They typically feature user-friendly displays to promote the equipment as a simple solution to energy management challenges, yet there is a slow uptake across the UK, with millions of customers displaying reluctance to adopting this innovative technology. HMRC has supported the development of improved smart meters by providing R&D tax refunds to companies that have dedicated resources to improving the technology and making it more approachable to commercial or domestic customers.
Energy Management R&D Claims Explained
Metering is the most important process for taking control of energy management in any sector. It provides real-time information and detailed reports that can help individuals and organizations establish effective energy management procedures. This is pertinent to R&D as it has the potential to reduce carbon emissions and improve the economic performance of small, medium, and large enterprises.
Energy management companies that have devoted time and money to improving the performance or applicability of smart meters may be entitled to make an R&D claim with HMRC. Many companies are deterred by misperceptions about the definition of R&D, but an R&D claims sum of over £16.5 billion has been claimed from HMRC by companies in sectors as broad as construction, waste management, IT support, property management, and more.
Case Study: Smart Meter Manufacturing
Energy management smart meters are gradually gaining traction in the UK, as homeowners and SMEs look to take control of their energy output with more robust accountings of when they are using their energy and why. Despite significant marketing pushes from most of the big energy suppliers however, it is estimated that just 11 million energy smart meters have been installed in the UK as of January 2018. This is due to a manifold of issues, from security concerns to technological skepticism. One potential solution to this problem is a more holistic approach to developing and installing smart meters, offering unique client-specific benefits and allaying concerns with a more personable touch.
An energy management company has adopted this mindset, applying their consultation and OEM expertise to the production of high-quality smart meters that provide more accurate and rounded insights into energy expenditure than competing hardware.
The company originally provided an energy assessment service that analyzed the peaks and troughs of a client’s energy usage over distinct periods. They used this information to produce detailed plans as to how their customers could reduce energy expenditure and improve their energy management protocols. Combining this mentality with their significant OEM experience, the company turned their attentions to producing smart meters that could automate some of these processes and provide more in-depth reports than was previously possible.
Significant R&D costs were associated with this new direction. The customer was attempting to provide unique smart meters specialized to commercial premises, with the added uncertainty as to if they could realistically provide energy management devices that offered qualitative improvements over established hardware. Fortunately for the energy management firm, their product was proven to provide more detailed accountings of energy consumption in commercial premises. This breakthrough significantly improved their market position, as increasing numbers of SMEs look to improve their ROIs for energy management investments.
The R&D aspects of this project were proved by building a detailed account of the firm’s financial input into the product, the uncertainty of its success, and whether the product could offer a significant benefit to the energy management sector at large. R&D Claims helped the firm to justify the R&D aspects of this project, and the firm subsequently received a tax refund of over £30,000.
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Energy Management R&D Claims
R&D Claims specializes in tax recovery services for companies that have performed qualifying R&D processes, with an emphasis on firms that have undertaken admirable research with far-reaching benefits. The energy management sector represents significant levels of recent development with a focus on reducing individual costs, but the installation of smart meters also signifies a commitment to reducing the environmental impact of businesses and homes across the UK.
Successful R&D claims are not exclusive to successful development of products or services. They are a legitimate source of tax relief for firms that have undergone R&D in areas of uncertainty, with the aim of improving industry or environmental practices beyond their own commercial benefits. Contact R&D Claims for more information.
This information has been sourced, reviewed and adapted from materials provided by the R&D Claims Company.
For more information on this source, please visit R&D Claims