Solar Panels: Business Rate Exemption

Lord Campbell-Savours Excerpts

Thursday 27th October 2016 Lords Chamber

[Baroness Neville-Rolfe]

As I have said, we are looking at the rate issue. There is also an issue relating to VAT, where HMRC issued a consultation—at the moment, domestic VAT continues to be 5%. The feed-in tariff deployment actually continues. Obviously, the subsidies of solar have come down because the costs have come down to such an extent. Solar has been a big success in this country and it is obviously right that the subsidy levels reflect that innovation and productivity.

[Lord Campbell-Savours (Lab)]

Why are there business rates on solar panels?

[Baroness Neville-Rolfe]

I do not think that there are business rates on domestic solar panels—that falls under my right honourable friend Sajid Javid’s department. Businesses have been caught because the rateable values reflect the value of the business property, and there have been changes to the regime that have led to the situation that I have described to the noble Baroness. We are looking at that, but rates reflect, in the long term, the value of property. However, I can see that there is an issue in relation to solar panels.