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Scottish solar industry at a “competitive disadvantage” claims sector
Solar energy firms have called on the Scottish Government to use devolved powers to make rooftop solar systems exempt from business rates.
In a letter published in yesterday’s edition of the Sunday Herald, a group of 12 different companies and organisations – including the Solar Trade Association, Forster Energy and iPower Energy – claimed the Scottish solar industry was at a “competitive disadvantage”, because business rates for solar are 10 times higher north of the border, compared to England.
The letter urged Holyrood ministers to introduce “simple secondary legislation” to exempt rooftop PV systems from business rates and help give the Scottish solar industry a boost.
“Solar deployment on Scottish rooftops lags far behind both national and European deployment,” the letter states.
“One of the reasons for this is the particularly harsh tax treatment of rooftop solar on Scottish businesses and public sector buildings, including schools and hospitals,” it adds.
“This is an own goal that needlessly puts the Scottish solar industry at a competitive disadvantage and denies Scottish business an important opportunity to invest for energy and carbon savings.”
Earlier this month, the British Hydropower Association called on the Scottish government to rethink its temporary business rate review, which it claimed would hit schemes between 1 and 5MW.
A spokesman for the Scottish Government said all “micro-generation” sites, which they class as up to 50kW for electricity and 45KW thermal for heat production are permanently exempt from business rates, in contrast to the situation in England, where there is only a temporary exemption.
“Any business that is concerned about its valuation should contact the local assessor and discuss how they worked out the value. All companies have until September to appeal,” the spokesman said.
“Looking forward, an external review of rates is due to report this summer, and we will respond swiftly.”
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