The Solar Trade Association (STA) estimates that excepting solar PV from rates could deliver 1500-1800 additional jobs annually, and increase business investment in the UK by more than £315 million a year. Many businesses shelved plans to install solar on their sites after a change in the way business rates are calculated saw early-adopters punished by skyrocketing premiums. In some cases well over 500 percent more.
“This will help businesses in Britain to build back better and contribute towards a green economic recovery by easing the frankly unjustified and disproportionate tax burden on renewables, driving the uptake of new solar in the commercial sector and delivering thousands of high quality green jobs across the country” said STA Chief Executive Chris Hewett.
National Federation of Roofing Contractors CEO James Talman, added that the roofing industry is in a prime position to help the government reach its net-zero target through the installation of solar technologies on Britain’s commercial roof spaces but that the industry is being held back by the archaic business rates system, which is stifling investment and innovation.
“We urge the Chancellor to rectify this by exempting renewable energy generation and storage from business rates to help reduce in carbon emissions and create thousands of quality skilled construction jobs, as well as generating millions of pounds of green business investment” said Mr Talman.
The Government has been undertaking a review of the Business Rates regime, with a public consultation due to close last Saturday (31st October 2020). The changes made in 2017 were met with contempt by several major businesses, including Sainsbury’s, IKEA and Kingfisher PLC. Exception from business rates for renewable energy technologies would bring tax treatment in line with certain fossil fuel technologies such as gas Combined Heat and Power.
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