UK pre-budget report released: FiT will be tax-free

The Renewable Energy Association has announced its support of changes to the renewable financial incentive mechanisms announced by the UK Chancellor in his pre-budget report, noting the importance of tax-free feed-in tariffs. However the Association says that overall, the report contained "little money" for renewables. These mixed feelings also seem to be shared with Good Energy and Friends of the Earth.

Focusing on the changes to financial incentives, set to support small-scale renewables generation, the REA said it welcomed the confirmed tax exemptions for income from FiTs on both the generation and export streams. However, it also claimed it would be looking for further details on the tax treatment of FiTs in the commercial sector.

Commenting on the Report, director of policy at the REA, Gaynor Hartnell, said, "There was little new money announced for renewables in today's pre-budget report, but the REA is pleased to see government respond to areas in which we have been calling for clarity."

Juliet Davenport, founder and chief executive of Good Energy, which also welcomes the FiT tax exemption said, "Good Energy welcomes the introduction of tax breaks for domestic micro-generation and is glad the government can see the benefits of rewarding green homeowners -something Good Energy started over five years ago.

Friends of the Earth's senior economics campaigner, Ed Matthew, said, "With the future of the planet hanging in the balance in Copenhagen, the Pre- Budget Report was a golden opportunity for the Chancellor to demonstrate genuine global leadership in developing a low-carbon future - but he has chosen to be timid when he needed to be bold."