Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the equity of the fiscal regime for rooftop solar power compared with those for other energy generation technologies.

The UK has applied a reduced, 5% VAT rate on 11 different types of energy saving materials, including solar panels, since 2001. That remains in place. The Government is still considering the responses to the consultation on energy saving materials and will issue a response to that consultation shortly.

The business rate treatment for solar panels is consistent with the treatment for other power generating plant and machinery. Plant and machinery which is used to provide power to the property is rateable, while these items are not rateable if the power is being wholly or mainly sold to other consumers. Changing the law in this instance would mean giving preferential treatment to the solar sector.

The treatment of capital allowances for solar panels is also consistent with the treatment for other power generating technologies.