Major UK brands support solar over proposed business tax hike

December 5, 2016
Facebook
Twitter
LinkedIn
Reddit
Email
Image: Solarsense.

More than 160 UK-based NGOs, public institutions and businesses – including major brands such as Sainsbury’s and IKEA – have come out in support of solar over proposed increases to rateable values.

A letter addressed to chancellor Philip Hammond has been signed by the group, urging him to intervene over a rise in business rates for commercial solar systems set to come into force on 1 April 2017.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

UK business rates are a tax on non-domestic properties enforced at local level. The rates are based on several factors, including any on-site power generators and are decided upon by the Valuation Office Agency (VOA), which is an executive agency sponsored by the UK government’s main taxation department; HM Revenue and Customs.

The potential increase first came to light this summer when the VOA began its regular review of rateable values, and was originally set to hit a more significant share of the market until the Solar Trade Association (STA) earned a respite for systems used predominantly to generate and export electricity.

This has however left systems geared towards self-consumption open to an increase in business rates – possibly as high as eight times their previous rate – when the new values come into effect at the start of the next financial year.

Campaigning over the issue has continued however and it was hoped that Hammond could announce an extension of the concession during the Autumn Statement towards the end of November, however there was no such decision within a budget that largely omitted renewable energy.

The letter says the industry has been “further jeopardised” by the business rates increase – which has followed “disappointing” policy changes such as the feed-in tariff review – and argues that the changes threaten to “restrict future investment in solar rooftops all over the UK”.

Paul Barwell, chief executive at the STA, said: “The sheer diversity of groups willing to sign this letter demonstrates the breadth of feeling on this issue. Now that the UK has signed the Paris Agreement it goes without saying that the government should support organisations seeking to reduce their carbon footprints, not penalise them. It is essential that solar energy is treated sensibly within the tax system.”

His sentiments were echoed by Mike Cherry, national chairman at the Federation of Small Businesses, who said that the proposed increases were an “extra financial burden that they [businesses] will struggle to cope with”. 

25 November 2025
Warsaw, Poland
Large Scale Solar Central and Eastern Europe continues to be the place to leverage a network that has been made over more than 10 years, to build critical partnerships to develop solar projects throughout the region.

Read Next

November 19, 2025
The US Department of Energy (DOE) will need to invest US$25 billion by 2030 to maintain its position as a leader in the global energy sector.
November 19, 2025
The world invested US$554 billion into solar PV projects in 2024, leading renewable electricity generation sources, according to IRENA.
November 18, 2025
Holosolis has secured €220 million (US$255.2 million) to support its construction of a module factory in France with a total capacity of 5GW.
November 17, 2025
Renewable energy developer SunCable has signed an Indigenous Land Use Agreement (ILUA) with the Powell Creek Native Title Holders, marking a milestone for the company’s AAPowerLink project in Australia's Northern Territory.
November 17, 2025
Spain has allocated up to €200 million (US$232 million) to fund “innovative” renewable energy and energy storage projects.
November 14, 2025
International solar manufacturer Canadian Solar has posted stable financials in Q3 2025, as its solar module and battery energy storage system (BESS) sales shift.

Upcoming Events

Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 24, 2026
Lisbon, Portugal
Solar Media Events
June 16, 2026
Napa, USA