-
The REA respond to Autumn Statement saying Government
have sent wrong signals to investors with renewable energy
taxes;
-
REA highlights need to achieve billions of annual
investment in UK renewables and clean tech to meet Net Zero -
which will be at risk from damaging investor signals for
renewables;
-
Sector calls for tax relief on low carbon investments
to help stabilise energy prices and offer long-term energy
security;
-
Welcomes added Government investment on energy
efficiency, but urges support for small scale domestic
renewables and energy storage;
-
Ending the road tax exemption for electric vehicles
expected, but warns that taxes on zero emission vans could harm
transition.
The Association for Renewable Energy and Clean Technology (REA)
has responded to today’s Autumn Budget, saying the Government
have sent wrong signals to investors with renewable energy taxes
which compare unfavourably with the oil and gas sector.
The REA point to gas fired plants receiving no additional levy
‘due to higher input costs’, while renewable generators with
rising input costs too will be subject to the levy. Gas prices
have risen in the past nine months, but so too have renewables
feedstocks such as pellets and waste feedstocks.
While the REA says that businesses in the renewables industry
want to play their part in solving the current economic crisis,
such disparities could harm future investment in cheap, green
energy. The Government is urged to provide tax relief for low
carbon investments to help stabilise energy prices and offer
long-term energy security.
Elsewhere, the REA have welcomed the added financial commitment
to energy efficiency, but have expressed concern that the 2024
start date is an unnecessary delay when action needs to be taken
immediately. Once again, the REA says that more technologies,
such as energy storage, need to be included under the Energy
Saving Materials list which provides VAT exemptions.
In addition, the REA says that the sector expected the change to
the electric vehicle Vehicle Excise Duty (VED), but warned that
ending the exemption for zero emission vans could harm the
transition for these vehicles in the face of higher costs. The
REA also highlighted the need to make sure that there is full
equity for all vehicles to avoid a scenario where some
conventional (ICE) vehicles would, in fact, pay less than zero
emission alternatives.
Finally, the REA has welcomed plans for an Energy Efficiency
Taskforce, but says now is the time for action, not more warm
words.
Frank Gordon, Director of Policy at the Association for
Renewable Energy and Clean Technology (REA), said:
“While the REA and its members recognise the immense economic
challenges facing this country, we would question the wisdom of
subjecting the cheaper, greener renewable power sector to a more
punishing tax system than its oil and gas counterparts.
“We note the exemption for smaller sites, but I would
strongly urge the Government to fix this disparity as there is a
strong need for tax relief for low carbon investments to help
stabilise energy prices and offer long-term energy security. This
is crucial for getting investments in renewables moving again
following the pause that resulted from the last few months of
political and policy uncertainty.
“The added investment into energy efficiency is a welcome
move, but action needs to be taken immediately. Additionally,
more technologies, such as energy storage, need to be included
under the Energy Saving Materials list which provides VAT
exemptions.
“Finally, while we expected a change to Vehicle Excise Duty
exemptions for electric vehicles, the Government needs to make
sure that they are not disincentivising the transition for vans,
in particular. It also must be ensured that financial incentives
remain in place for the move to such vehicles in light of recent
charging price rises and the withdrawal of grants for electric
car purchases.
“Overall, there are a lot of outstanding questions from our
sector that need to be answered by the Government.”
