UK slaps massive 800% tax increase for rooftop solar panels

The US isn’t the only developed country backtracking on environmental development: the UK recently announced a new law that will bring a devastating tax increase on solar energy. As it has become so common in recent months, the government said it’s a good thing which will help development, but provided no explanation as to how it will help anything.

A row of houses sporting solar houses. Image credits: Christine Westerback.

Although it is still a leader in European solar power generation, the UK is making huge strides in the opposite direction. The country’s solar industry already lost 12,000 jobs last year and there has been an 85 percent reduction in the deployment of rooftop solar schemes, largely due to political intervention: the government drastically cut incentives for householders to fit solar panels and ended subsidies for large-scale “solar farms”. Now, they’re taking things even further, announcing that schools and businesses who haven’t been paying taxes for solar energy will now have to pay, and those who have been paying will pay 8 times more. To make things even peachier, the tax increase doesn’t apply to private schools, for a reason that has not been disclosed.

Needless to say, reactions have been highly critical of this move. The speech of Chancellor Philip Hammond on the 2017 budget barely even mentioned renewable energy, although he did emphasize a promise to help the oil and gas industry “maximise exploitation” of the remaining reserves in the North Sea.

“This is slightly less than helpful for the British solar industry,” the Solar Trade Association’s Leonie Greene told The Independent, in a very British fashion. “It’s absurd. Energy tax policy is going in the opposite direction to how we know energy needs to change and how it’s changing. What he is doing is advantaging old technology and disadvantaging new ones. It’s nonsensical.”

Despite pleas from the industry, schools, businesses, and the public sector, the government refused to back down on this. They specifically mentioned that this will be beneficial for schools but again, did not mention how. A petition with over 200,000 signatures from a school in London will be delivered to England’s Treasury Department today, but expectations are minimal

This is extremely ironic because according to the government’s own figures, solar is expected to become the cheapest form of electricity generation sometime in the 2020s. It’s like the UK just decided to shoot itself in the leg — and this won’t only affect the businesses (especially small businesses), schools, and farms with solar panels, it will also affect average consumers, driving the price of electricity up by a notch. Leonie Greene adds:

“That is crazy because it is the cheapest and most popular source of energy. What that means is consumers are paying more. We are taking away the competitive pressure solar has put on other technologies. We need something to change for the solar industry. We are just trying to get a level playing field with fossil fuels.”

In a normal world, where politicians are unbiased and simply want the best for their citizens, they should be offering great support for renewable energy — especially in the UK. The country is going through a severe pollution crisis. The situation is so bad that the UK has been taken to court twice and lost, being ordered by the supreme court to take action against climate change. Yet not only are they withdrawing subsidies and support for renewable energy, they’re actually making it harder for renewables to complete against fossil fuels. Just like in the US, the government hangs on to the oil and gas pipedream, ignoring both the environmental and economic reality: renewables are getting cheaper, and fast. Fossil fuels may be the past, they may be a big part of the present, but they’re certainly not the future. Installing new renewables is already cheaper than fossil fuels.

James Thornton, chief executive of ClientEarth, the NGO that sued the UK and won, declared:

“Despite being ordered twice by the courts to take urgent steps to tackle the country’s air pollution crisis, it seems the Treasury has still not grasped the urgency of the situation,” he said. “We fear that Government plans [on air pollution], which are due out next month, may well fall short of what is needed.”

His fears — to say the least — seem rational. With Brexit right around the corner, the government seems set to scrape several of the EU regulations and give into the fossil fuel lobby. Although not as vocal and not as absurd as the Trump government, there are clear similarities to be drawn.

7 thoughts on “UK slaps massive 800% tax increase for rooftop solar panels

  1. safetynet2razorwire

    Hand in hand the US and its UK 'Mini-Me' tromp resolutely into irrelevance.

  2. Eugene

    What sort of insanity has hold of the British parliament? Brexit here we come again. Politicians have got to be destroyed in the ballot box and the sooner the better. The elitist wealthy few have strangled democracy and have to be cast to the wind. Representation by the people for the people has got to start all over. The new revolution is on its way.

  3. Andrei Mihai

    As a non-Brit, it's simply shocking to me that an unelected government (no one voted for Theresa May as Prime Minister except party members) can take the country out of the EU, re-negotiate all trade agreements and send renewable energy into the ground… and people seem OK with it.

  4. VendicarDecarian0

    Conservatives have control over the British parliamennt.

    The only good Conservative is a dead conservative.

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  6. cvxxx

    Government has a income problem. Not enough taxes are collected. Often it is because the system needs a new operating system and up to date programming.

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