Good Energy argues the government’s solar tax proposals urgently need a rethink
Another government consultation has ended on increasing VAT on low-carbon technologies, including domestic solar panels, biomass boilers, and battery storage.
Consumers are facing a five per cent to 20 per cent hike in costs to climate change solutions we can use today. Meanwhile, domestic coal, the highly carbon intensive fuel the UK is committed to eradicating from our energy system, will continue to enjoy the lower five per cent rate.
We were here in 2016 when a similar tax hike was proposed and eventually dropped thanks to industry and cross-party opposition. Fast forward three years and we are back in the same place, albeit with a few changes.
Could there be a more contradictory step from a government which notably failed to stop the Commons declaring a climate emergency? The increase is certain to hit innovation and investment in the UK’s growing solar and battery storage market. But it stacks up with similar moves to undermine small scale renewable generation: closing the Feed-in Tariff, complicating network charging rates, and making clean power pay a climate change tax.
Read more: Business Green