The Solar Trade Association (STA) is calling on the UK Government to deliver a budget that unlocks the potential of solar to support the transition to net zero greenhouse gas emissions.
In its budget representation the trade group has advised the treasury to make solar installations exempt from business rates, provide zero-interest loans for green home improvements and commit to procure renewable energy for the civic estate.
The STA said: “This government has begun to take vital first steps towards delivering net zero, but there is a lot of work to be done yet.
“Solar has a key role to play in decarbonising power and driving down emissions in heat and transport too. The industry stands ready to deliver. It is down to the government to unleash its true potential.”
The Committee on Climate Change estimates that the UK’s solar power capacity will have to triple by 2030 in order to be on track for the Government’s legally binding target of net zero greenhouse gas emissions by 2050, while a new report released by the National Infrastructure Commission estimates as much as 121GW will be needed by 2050.
Disproportionate business rates present the biggest barrier to the deployment of large rooftop solar installations today, according to the STA.
Calls for reform, including to accommodate solar and other onsite renewable technologies, have been made by several business associations, including the British Retail Consortium. An exemption from rates for solar would bring the technology on an equal tax footing with gas combined heat and power generation, which is currently exempt.
Late last year solar was impacted by a change in how VAT is applied with high-end systems, those combined with battery storage, and those acquired through collective purchase schemes now liable to attract a 20% rate, significantly increasing the cost of some domestic systems.
Following the UK’s departure from the EU, the industry rightly expects the rate change to be reversed, and the STA is calling for battery storage to be added to the energy saving materials list in the interim to enable this nascent technology access to a reduced rate of 5% VAT.
Zero-interest loans have been utilised successfully in Scotland, through the Home Energy Scotland scheme, and a nationwide roll-out would likely drive consumer demand and ensure the 60% of households who want to get solar are more able to, according to the STA.
The STA is also calling on the government to lead by example by committing to powering the civic estate with 100% renewable energy, which will enable cut the operating costs of the estate and accelerate its decarbonisation.
Many local authorities and businesses have already committed to renewable energy procurement targets via the UK100 and RE100 schemes respectively.