With the drop in the supply price of solar panels, the cost of installations, a LOT more sun (than England) and the much higher electricity prices now means that an economic investment can be made in Solar PV without the need for Feed-in-Tariff or Renewable Energy Obligation support . Of course that is at the industrial scale! – In just one province – Murcia in South East Spain – they plan to install 2.5GW of solar PV – that’s 10 times more than they did in the last two years alone.
Worcester Renewables Ltd
t:01386-871490 e:info@WorcesterRenewables.com
Author: Worcester Renewables (page 1 of 7)
Currently domestic installations of Energy Saving Materials and technologies only attract the reduced rate of VAT at 5%.
However if Brussels Bureaucrats have their way then the cost of any energy saving measure to domestic customers will go up by 15% as they levy the full rate 20% VAT.
What does this mean?
Potentially two things,
1) it could kill the Governments’ Green Deal initiative before it has even started
and
2) It could be the final nail in the coffin of self funded domestic PV installations.
Below is the latest information from Brussels
VAT: Commission requests UK to amend its rules on reduced rates
The European Commission has asked the United Kingdom to amend its legislation which allows a reduced VAT rate for the supply and installation of "energy-saving materials". This measure goes beyond the scope allowed under the VAT Directive.
Under EU VAT rules, Member States can only apply reduced VAT rates to a limited number of goods and services, which are clearly listed in Annex III of the VAT Directive. This list does not include the supply and installation of "energy saving materials". Therefore, the UK’s application of a reduced rate in this area contravenes EU legislation.
The request takes the form of a Reasoned Opinion (the second stage of an infringement procedure). If the legislation is not brought into compliance within two months, the Commission may refer the matter to the European Court of Justice.
Background
For press releases on infringement cases in the taxation or customs field see:
http://ec.europa.eu/taxation_customs/common/infringements/infringement_cases/index_en.htm
For more information on EU infringement procedures, see MEMO/12/464
For the latest general information on infringement measures against Member States see:
http://ec.europa.eu/eu_law/infringements/infringements_en.htm
and you can see the original here:
| Band (kW) | Prior to August 1st (Single Installation) |
Standard generation tariff (p/kWh) |
Multi-installation tariff (p/kWh) |
Lower tariff (if energy efficiency requirement not met) (p/kWh) |
Period of Tariff (Years) |
|---|---|---|---|---|---|
|
•4kW (new build)
|
21.0
|
16.0
|
14.4
|
7.1
|
20
|
|
•4kW (retrofit)
|
21.0
|
16.0
|
14.4
|
7.1
|
20
|
|
>4-10kW
|
16.8
|
14.5
|
13.05
|
7.1
|
20
|
|
>10-50kW
|
15.2
|
13.5
|
12.15
|
7.1
|
20
|
|
>50-100kW
|
12.9
|
11.5
|
10.35
|
7.1
|
20
|
|
>100-150kW
|
12.9
|
11.5
|
10.35
|
7.1
|
20
|
|
>150-250kW
|
12.9
|
11.0
|
9.9
|
7.1
|
20
|
|
>250kW-5MW
|
8.9
|
7.1
|
N/A
|
N/A
|
20
|
|
stand-alone
|
8.9
|
7.1
|
N/A
|
N/A
|
20
|
|
Export
|
3.2
|
4.5
|
4.5
|
4.5
|
20
|
So what does this mean to business and commercial installations?
It depends upon who you do business with.
Worcester Renewables buys direct from the manufacturers, and with 4 – 6 week lead times between purchase and delivery our prices are already determined for post 1st August, and whether your purchase before or after 1st August you will still see an ROI, index linked of 10% year on year. However if you can install before the 1st August you will benefit from those payments for 25 years, as opposed to a reduced 20 years.
We also have funding available for a number of sites, so if you believe that you have a property that may be suitable for the installation of Solar PV, then just fill in the form below and we’ll get straight back to you:
Accreditations
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