The government has pulled the rug out from under the community energy sector with a devastating tax relief u-turn. On Monday (26 October) Treasury Minister David Gauke announced the removal of EIS tax relief for community energy schemes receiving subsidies, to take effect from 30 November (2015).
Affected schemes will also continue to be ineligible for another tax subsidy, the Social Investment Tax Relief (SITR), meaning that the incentives to encourage people to invest in community owned renewables have been removed.
Co-operatives UK Policy Officer, James Wright, said: “This is a complete reversal of previous announcements made in the 2014 Autumn Statement and Budget 2015 statement. We had expected that an expanded SITR would be opened to community energy schemes while EIS would continue for six months after changes to SITR gained State Aid approval.
“Given that the co-operative and community energy sector fought so hard last year to secure continued support for community investment in renewables, including providing clear evidence of just how important it is, and have been given numerous assurances from government, this is a really heavy blow for our members, and for us at Co-operatives UK.”
Co-operatives UK research, undertaken in the summer of 2014, revealed that the removal of all tax reliefs could result in a 59 percent drop in community investment in renewables.
James Wright said: “It is extremely disappointing and damaging to have moved the goalposts for these businesses so suddenly and dramatically. The plans of many communities, who have already had to rework financial models and project schedules numerous times, are likely to be in tatters.
“We will be seeking an explanation from HM Treasury as to why it has changed its mind about the social impact of community energy, and how it justifies implementing policy for business in this way.”
The latest announcement is a further blow to the sector following recent government proposals to effectively end the Feed-in Tariff (FIT) which provides security through guaranteed energy generation minimum payments.
Like our Facebook Page
Can You Maximize Your Profits While Investing Ethically?
Environmental Benefits of Living in Miami. Why Is It Worth Moving There?
5 Ways To Shift To Green Energy At Home
Advantages of Free-Range Farming for Eco-Friendly Consumers
What is Eco-Friendly Investing and How Can You Embrace It?
Green Software Ideas to Implement with an Offshore Development Team
5 Things Eco-Conscious Consumers Should Know About Private Wells
The True Environmental and Social Costs of Mined Diamonds
20 Incredible Facts Eco-Tourists Should Know About Dubai
5 Massive Benefits of Turning to Renewable Energy
6 Tips For Getting the Most from a Solar-Powered Home
7 Excellent Ways to Live a Greener Lifestyle in 2021
How the Property Industry Is Embracing Eco-Friendliness Across the Board
Sustainability in Construction: Methods to Mitigate Environmental Impacts
New Company is Driving ESG Infrastructure Development in Mining
10 Tips to Turn Your Next Holiday into an Eco-Friendly Celebration
4 Benefits of Commuting with a Bicycle as an Eco-Friendly Consumer
Some Important Facts about Eco-Friendly Glass Railings
Impact Proof of Stake Ethereum Mining on Power Industry Sustainability
7 Business Survival Guidelines All Eco-Friendly Entrepreneurs Must Follow
- Features12 months ago
Eco-Friendly Interior Design Is Easier Than You Might Think
- Features10 months ago
Eco-Friendly Hacks To Create A Durable Shop For Your Home
- Energy6 months ago
Eco-Friendly Homeowners Lower Carbon Footprints through Greater Air Conditioner Efficiency
- Features5 months ago
Seven Health and Safety Tips for Eco-Friendly Products in a Green Home