Autumn Budget | Solar Power
November 1, 2021
During last weeks Autumn budget, Rishi Sunak unveiled a raft of measures to support investment in clean energy.
The first, and most welcome measure, was confirmation that solar PV, energy storage and other clean energy technologies are to be exempt from business rates rises from April 2023.
HMT’s red book confirms this within a section on ‘Warmer, greener buildings’ which states that “the government is providing business rates exemptions and relief in England for eligible green technologies to support the decarbonisation of non-domestic buildings”.
Chris Hewett, Solar Energy UK’s Chief Executive, said: “Today the Government have given rooftop solar a big endorsement by finally removing the perverse business rates treatment for onsite solar and energy storage, originally imposed in 2017. Companies and public sector bodies which have taken action to cut carbon by installing solar, will now also be rewarded with a cut in their business rate bills in the future.”
The second measure announced was an extension to the £1million Annual Investment Allowance. Originally schedule to end at the end of 2021, the £1million limit will now continue until April 2023.
In real terms this will see a business investing £750,000 in solar PV reduce their tax bill by around £142,500.’