EU VAT reforms could prevent solar hike
The European Commission published an Action Plan on VAT last month that the solar industry hopes will support Ministers ’ indicated intentions to apply a reduced rate of five percent VAT on solar PV and solar thermal panels .
The European Commission intends to give national governments “ more autonomy ” in how they grant lower rates of VAT . The EU executive has put forward two possible options : The first is to set a broader EU-wide list of products to which reduced rates can apply ; the second is simply to give , within a set of general principles , governments the power to set their own reduced rates of VAT . Both will result in greater flexibility . Last month a cross-party amendment to the budget led to statements from senior
Ministers , ahead of EU VAT reform , suggesting the UK would retain the low five percent rate for solar .
Leonie Greene , Head of External Affairs for the STA , said : “ What we need now is a clear statement from Treasury to confirm the industry can count on the positive statements already given by Ministers . It would be a nonsense to impose VAT on solar at 20 percent while retaining five percent for grid electricity , gas and oil .”
The Commission ’ s communication says the EU VAT Directive is “ becoming obsolete ” and has led to the Commission having to take over two-thirds of EU countries to court in “ unnecessary litigation ”.
‘ Stunning Solar ’ campaign launches
The Solar Trade Association has begun a new push to promote more widespread awareness of how the latest in rooftop solar technology can produce beautiful and aesthetically pleasing installations .
A combination of inspired design , building integrated products and mounting systems that sit flush with the existing roof are creating more and more sleek and attractive solar rooftops on both domestic and commercial properties .
Paul Barwell , CEO of the Solar Trade Association , commented : “ First impressions are everything , and that applies to houses just
as much as people . Stunning Solar shows that solar can increase the ‘ kerb appeal ’ of a home , as well as making it cheaper and more ecofriendly to a household or business .”
Two East Anglia PV firms in liquidation
Eco Juice and Absolute Renewable Energy ( UK ), both based in Norwich , have blamed Government solar subsidy cuts after going into liquidation .
Absolute Renewable Energy ( UK ), based near Norwich airport , went into liquidation in February after amassing debts of about £ 800,000 , although around half of this was to its parent company , Avonside Group Services .
Liquidator Dean Watson , partner at Begbies Traynor Insolvency Practitioners , said the firm employed 25 people and also contracted about 40 self-employed sales people . “ The firm got to the New Year and the order book was drying up ,” he said .
Eco Juice , founded five years ago , also ceased trading in February , citing lack of business as a result of reductions to the Feed-in Tariff . Director Peter Fleetwood said he was forced to let two workers go , but said solar panels were now a “ hard sell ” due to the Government ’ s cut back .
Liquidator Jamie Playford , of Leading Corporate Recovery , said the company had accumulated creditors of about £ 43,000 .
The Solar Trade Association said that although there had been an 80 percent reduction in solar panel installations since last February , the market was evolving with new ideas including solar set-ups with home battery systems , enabling consumers to reduce their dependence on the grid .
Renewables now generate 57 % of Scotland ’ s power needs
New figures reveal that Scotland generated the equivalent of over half its electricity needs from renewable sources in 2015 , surpassing the 50 percent target set by Ministers .
Based on the latest consumption figures from 2014 , renewables now generate the equivalent of 57 percent of Scotland ’ s power needs . The new statistic , published by DECC , means Scotland is now more than halfway towards its target of producing the equivalent of 100 percent of its electricity from renewable sources by 2020 .
Jenny Hogan , Director of Policy for Scottish Renewables , said : “ This is another important milestone and shows renewables are now a mainstream part of our power sector . There is still a huge amount of potential for future growth , if the industry is given the right backing by government .” However , she warned : “ Despite having enough projects in the pipeline , recent changes to government support , and hold ups in the consent process for offshore wind farms , have set us on a path to fall short of the 2020 target .”
The approximate statistics will be confirmed once the consumption figure of electricity in 2015 is available later this year .
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