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

To ask the Secretary of State for Energy and Climate Change, what assessment she has made of the effect on uptake of renewable energy production of increasing VAT on domestic solar photovoltaic installations.

A recent European Court ruling found that the reduced rate of VAT on certain ‘energy saving materials’ was in breach of EU law. As a result HMRC recently consulted on how that reduced rate of VAT is applied and are currently considering the responses to that consultation. If it is decided that a change to VAT is appropriate, we will consider options on how to maintain a suitable rate-of-return for investors.