Unlocking Financial Incentives: Installing Solar PV for Green Energy Production in the UK
- Small Export Guarantee (SEG)
- Enhanced Capital Allowances (ECAs)
- Business Rates Relief
- Grants and Funding
As the world embraces sustainable energy solutions, and the UK Government moves closer to it’s 2050 Net Zero target, businesses across England are increasingly turning to solar photovoltaic (PV) installations to harness the power of the sun. Not only does solar PV help reduce carbon emissions, but it also offers significant financial incentives for companies willing to invest in renewable energy. In this blog post, we will explore the various financial incentives available in England for installing solar PV systems, empowering businesses to make informed decisions and embrace a greener future.
1. Smart Export Guarantee (SEG)
Introduced in 2020, the Smart Export Guarantee (SEG) replaced the previous FiT export tariff. This scheme ensures that businesses are paid a fair price for the excess electricity they export to the grid. Energy suppliers with over 150,000 customers are now required to offer competitive export tariffs, providing businesses with greater flexibility and fair compensation for their green energy contributions.2. Enhanced Capital Allowances (ECAs):
2. Enhanced Capital Allowances (ECAs):
The Enhanced Capital Allowances (ECAs) scheme enables businesses to claim tax relief on the capital expenditure associated with installing energy-efficient equipment, including solar PV systems. By claiming ECAs, businesses can offset the costs of their solar PV investment against their taxable profits, reducing their overall tax liability.
3. Business Rates Relief:
To further incentivise the adoption of solar PV, businesses in England may be eligible for business rates relief. Under this scheme, solar PV systems are exempt from additional business rates, reducing the financial burden associated with renewable energy installations.
4. Grants and Funding:
Various grants and funding options are available to support businesses in England looking to invest in solar PV. These may include regional grants, industry-specific funding programs, or initiatives aimed at promoting sustainable practices. Researching and applying for these grants can significantly offset the initial investment costs.
Installing solar PV systems for on-site green energy production in England not only contributes to a cleaner environment but also offers attractive financial incentives for businesses. From the Smart Export Guarantee to Enhanced Capital Allowances and business rates relief, there are several ways for businesses to benefit financially while reducing their carbon footprint. By embracing solar PV technology, companies can lead the way in sustainable energy practices, demonstrating their commitment to a greener future while enjoying long-term financial gains.
Remember, it is important to consult with a professional solar PV installer like GreenLight Engineering, or a financial advisor to understand the specific eligibility criteria and benefits associated with each incentive scheme mentioned above. Request a call back from a member of our team who will be happy to answer any questions.