Proposed tax hike for businesses with solar panels

Meeting: 
MQT on 2016-10-19
Session date: 
October 19, 2016
Reference: 
2016/3673
Question By: 
Caroline Russell
Organisation: 
City Hall Greens
Asked Of: 
The Mayor

Question

The Valuation Office Agency's draft rateable values for 2017 for all properties that pay business rates are proposing a six- to eight-fold tax rise for businesses that own solar panels and use the power themselves. Given your decentralised energy targets and forthcoming solar strategy, will you make a representation to the relevant Government departments against these proposals which the Solar Trade Association believes will severely damage solar deployment and delay cost parity with fossil fuels?

Answer

Answer for Proposed tax hike for businesses with solar panels

Answer for Proposed tax hike for businesses with solar panels

Answered By: 
The Mayor

Yes. I intend to write to Government following the GLA's wider Business Rates Consultation response. Their consultation is part of a wider re-evaluation of business rates that takes place every five to seven years, where the Valuation Office Agency looks at how assets are valued.

The current Government proposals will increase business rates for organisations that use power directly from solar rooftops that they own. Such increases are likely to have a significant detrimental impact upon the financial business case for installing solar PV.