Act Now: Meet Net Zero Targets

Solar Squad vs. Tax Tussle: An Unexpected VAT Showdown

In a plot twist that’s almost as shocking as the UK’s net‑zero pledge, the STA has knocked on the doors of all 17 members of the Delegated Legislation Committee, pleading—once again—to keep the bad guys (aka the latest statutory instrument) at bay. The culprit? A potential VAT hike that could jack the rate for homes installing solar panels and battery storage from 5% to a whopping 20%.

Why This Matters (And Why It Shouldn’t)

Solar Becomes a “Golden Ticket” – up to now, solar and solar‑plus‑storage installations qualify for a sweet 5% VAT because they’re classified as “energy‑saving materials.”
New Proposal’s Deal – the on‑the‑table change would raise VAT on any “energy‑saving material” whose cost makes up more than 60% of the total installation price.
Immediate Fallout – battery storage would suddenly be bumped out of the tax‑friendly realm, effectively stalling a market that’s already scaling up like a rocket.
Policy Chaos – the same committee is set to vote while the BEIS Secretary of State schedules a motion to amend the Climate Change Act 2008, aiming for net‑zero emissions by 2050.

Chris Hewett’s Not‑So‑Quiet Punishment

Last week, Chris Hewett, the chief exec for the STA, sent a fan‑letter to the committee. Today, he followed suit with a second letter that reads more like a pep talk:

“It can’t be said loud enough—actions are the only currency that will deliver on those carbon targets. Today’s movement risks becoming the ultimate plot twist: policy undermining the public’s climate‑action enthusiasm while politicians boast about it. We’re bitterly disappointed with this secondary legislation sprint that threatens to raise VAT for homes seeking battery storage alongside solar panels. Let’s give this panel some slow reflection and a better plan before we hand over the keys.”

What the STA Wants to Keep the Future Bright

Battery storage should stay on the “energy‑saving materials” list.
Hydro and wind are currently in danger of slipping out of the 5% VAT zone.
A policy that aligns with climate objectives, not a policy that merely slides towards a new pie‑cutter.

The Committee’s Human Touch

With a mix of nine Conservatives, seven Labour MPs, and one SNP member, the committee is short‑notice but mighty. Thousands of MPs from the government’s side are expected to keep laws moving. Yet, beneath the legislative grind, some staunch conservative MPs were gushing up a quick advisory to their constituents, claiming the proposal would “have no impact on businesses.” Irony, if you ask us.

Past, Present, and Pending

Back in 2016, the government had promised that solar would continue to benefit from the reduced VAT rates. Now, a new consultation appears out of the blue, armed with only a month (including Easter) for responses—a tidbit that feels less like open dialogue and more like a ticking time bomb.

In short, the STA is waving its flag, urging parliamentarians to rethink this VAT move before it darkens solar homes and stifles the forward momentum of clean‑energy tech. Because, folks, we’re fighting for a brighter, cleaner future, not a dreary, overpriced one.