Gumperson’s Proof states that ‘the most undesirable things are the most certain (death and taxes)’. Whilst the former remains as certain as ever, the same cannot be said for the UK’s approach to taxing technologies essential to reducing our nation’s bills, decarbonising our homes and enabling flexibility within our electricity system. To the immense frustration of the clean energy industry, we are yet again fighting off another proposed VAT hike for solar and storage technologies. Despite fending off similar proposals back in 2016, the reduced rate VAT of 5% available to domestic solar PV and solar thermal installations (as well as an array of other technologies) is again under threat. The STA established two years ago that any domestic installation of solar and storage installed together is able to qualify for the reduced rate VAT of 5% because solar features on an ‘energy saving materials’ list. Therefore, storage, when installed at the same time, is recognised as ancillary to solar, despite not featuring on the list.
Solar Trade Association 11th June 2019 read more »