Solar panel business rates
- Thread starter Wooly
- Start date
gavztheouch
Member
Wooly, where you already paying business rates on the shed before the solar panels?
I am about to install 40kw of ground mount but would think again if I needed to pay business rates as it would wipe out any benefit to the business.
From the little I can find on the internet exceptions seem to apply for systems under 50kw and also to systems used to power agricultural or dairy's.
Seems strange the fine details are not publicly displayed on the internet, there seems to be no way to find out if business rates apply.
I am about to install 40kw of ground mount but would think again if I needed to pay business rates as it would wipe out any benefit to the business.
From the little I can find on the internet exceptions seem to apply for systems under 50kw and also to systems used to power agricultural or dairy's.
Seems strange the fine details are not publicly displayed on the internet, there seems to be no way to find out if business rates apply.
akaPABLO01
Member
Ring this number 03000501501
Choose any option
Ask to be transferred to NDR
Give a name and contact number and ask for a valuer to contact you.
Await call and ask away.
This is the workman’s entrance to the secret voa society. Shhhh.
akaPABLO01
Member
https://www.gov.uk/guidance/rating-...property-classes/section-530-power-generators
For exemption
Under 50kW you need to use 50%+ of the power
Above 50kW you need to use 90%+ of the power
Councils look at their planning applications and then visit the farm to carry out a survey, they pass this on to VOA and they send out a questionnaire to complete and this is how the rates are calculated from what ive been told. If you are not on council planning then they will not visit.
- Location
- South Wales UK
Is it same for wind please?
akaPABLO01
Member
Everything, I think the link list (section 2) all from thermal to nuclear.
gavztheouch
Member
" For new microgeneration P&M installed to an existing hereditament on or after 1st October 2008, whose main purpose is to supply the host hereditament, the P&M is treated as excepted plant and machinery for rating purposes, for the remainder of the life of the list in which it is installed. For example, if microgeneration equipment was installed on 1st January 2009, it would be excepted up until 1st April 2010, if it were installed on 1st January 2012, it would be excepted up until 1st April 2017, and if installed on 1st January 2018, it would be excepted up until compilation day for the subsequent Rating List."
The next Rating list is in April 2022 so any microgeneration systems installed now will only be exempt until the next list and this is only be for sites that use over 50%?
The next Rating list is in April 2022 so any microgeneration systems installed now will only be exempt until the next list and this is only be for sites that use over 50%?
gavztheouch
Member
Do you know if the business rates are relative to the income or is it based on installed KW.
If he pays £5,200 per year on a 100kw system then my 43kw system would attract business rates of £2,236.
Assuming a generation of 37,000 kwh per year with a fit of 4p and an export of 5p = £3,330 that leaves £1094 per year to pay back the system. Doesn't seem so attractive anymore.
akaPABLO01
Member
Whether I was told the correct rate tax payable on the system is the real question which I have not seen evidence. I did speak with the assessor and was told that if he could get to a 90% usage we could get a review immediately.
Now this is the thing, I think they are only looking at solar above 10p/ generation FiT rooftop and then it’s calculated on tariffs. If anybody has paid below 10p I’d like to know with the exception of ground mount farms.
These taxes can be cancelled if you can prove your usage with export meter. I do not think anybody will receive tax on an install AFTER April 2017. Prove me wrong.
Unless you have council planning you will not get a review, the council has to be pro active in gathering the sites and receive 100% of the rates. VOA will not pursue any solar installs for review.
50kW and below need to use 50%+ of the solar and 50kW above need to use 90%+
As I said I don’t think they will go after installs post 2017 as the tariffs are too low. I expect a revision in 2022 but I can’t see taxes paid on lower tariffs.
VOA claimed that they don’t receive the questionaire back from farmers which results in maximum rates.
gavztheouch
Member
Thanks, I have planning permission for the system. Im also in Scotland if that makes any difference in terms of the rules?
akaPABLO01
Member
No difference, do you have a half hourly supply meter?
gavztheouch
Member
I have a half hourly meter.
- Location
- Romney Marsh
No, the shed is a cow barn.
I always feel that it is fine for the Government to change the rules for future installations, but not after we have done the business plan and operating them for a few years. Gone from a good income, to a poor return on investment.
The same thing happened when we built the barn..... the rules changed afterwards and agricultural tax relief for the barn disappeared on the whim of the government.
#robbingbarstewards
akaPABLO01
Member
Ok, to safeguard you against any future inspection ask the installer to apply for an export MPAN from your DNO and ask them to research your meter operator to see if it complies with export registration. You may not need it but you’ll also be eligible for export payment if any and you’ll have evidence of usage and export.
gavztheouch
Member
I guess my rateable value would be below £12,000 as the business has no other buildings or assets unrelated to agriculture. Would this mean zero tax or is that too simplistic
akaPABLO01
Member
Doesn’t matter what type of farm you are you have to use 50%+ of your 40kW solar you generate annually from your 34,000kWh solar
gavztheouch
Member
I would probably struggle to use 50% at the moment maybe in 5 years I might with electric Van, tractor etc. I could monitor the output from my half hour meter online and shut the system down if it looks like I can't meet the 50%
The rateable value of the solar array plus additional rateable assets like non agriculture sheds I think needs to come to over £12000 before you start getting billed. So they rate your solar at say £3000 per year but you don't have any additional buildings to rate it will be under the threshold and so zero business rates to pay. I think it's called small business relief. If you have multiple renewable projects or have diversified into other projects this is maybe where the business rates are being applied to bring you over the 12,000 and therefore solar would be rated.
But I'm still unclear this is just a guess.
The rateable value of the solar array plus additional rateable assets like non agriculture sheds I think needs to come to over £12000 before you start getting billed. So they rate your solar at say £3000 per year but you don't have any additional buildings to rate it will be under the threshold and so zero business rates to pay. I think it's called small business relief. If you have multiple renewable projects or have diversified into other projects this is maybe where the business rates are being applied to bring you over the 12,000 and therefore solar would be rated.
But I'm still unclear this is just a guess.
akaPABLO01
Member
That looks about right. I’ve been the expo show today in Telford and asked the battery storage guys to research if we put storage on to soak up excess export would this help exemption and they are going to do the research. I don’t expect an answer so I’ll probably chase it up myself.
akaPABLO01
Member
What heating system do you have and how many properties on your yard, an office maybe?
gavztheouch
Member
No house or office on the farm yet. If I build a house I would like it to be as close to passive house as possible ie.. no heating required.