October 2021 Budget announcement. We’ve been listened to.


When our founder John Macdonald Brown joined the Renewable Energy Association as the Chair of the Solar group, top of the list of changes they wanted to persuade the Government to make was to remove business rates on embedded generation…

It made no sense and was completely counter-intuitive to be charging people up to 20% of the market (delivered) value of the energy generated each year just for having the installation – madness! However, Syzygy are but one of many groups asking for change in a very old system (retailers!)…

Fast forward 10 years and it seems the renewables industry’s representations seem to have been listened to!

This is really REALLY good news, even if there are still some residual peculiarities (and we’re sure there’ll be some)!

The government plan to introduce a rates exemption for eligible plant and machinery used in onsite renewable energy generation and storage, such as rooftop solar panels and battery storage used with renewables and electric vehicle charging points, from 2023 until 2035. A 100% relief will also be provided for eligible low-carbon heat networks that have their own rates bill. This is stated in the following link to the Final Report on Business Rates Review:

BRR_final.pdf (publishing.service.gov.uk)

We suspect that this will not mean nil rates payable on on-site renewables as there may be elements of the assets that remain rateable (battery housing, concrete pads, steelwork for solar panels etc), however this should result in a material drop in the impact of rates on ‘self consumption’ sites and parity with ‘export only’ sites. The valuations for export only sites, valued on a receipts basis, currently resulted in materially lower valuations than those on self consumption sites which were valued on a replacement cost basis.

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