Solar panel business rates

[akaPABLO01]

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.

Use the export electricity to help power an ashp/gshp and claim one of the governments subsidies on top of your fit?

Or, you could huddle around a candle during the coldest time of winter and give away your solar electricity to your neighbour?

 

[Wooly]

Update on this, I spoke to the valuation officer who said unless I could prove that I use 90% of the electricity then business rates apply.

I then tried to go down the small business rates relief route............. and that also failed.

So unless someone on here has successfully appealed against the rates, our small 18kw PV system has £440 business rates attached.

 

[akaPABLO01]

Update on this, I spoke to the valuation officer who said unless I could prove that I use 90% of the electricity then business rates apply.

I then tried to go down the small business rates relief route............. and that also failed.

So unless someone on here has successfully appealed against the rates, our small 18kw PV system has £440 business rates attached.

Have you been through this table?

https://assets.publishing.service.gov.uk/media/5c1a45ae40f0b60c1ec23a82/Flowchart_RM_S6_530.png

 

[rollestonpark]

The grass between the panels is not rateable. That is just grass.
You graze that don't you.
Has that been taken into account?

That what the solar parks say to reduce the rates

I think you can argue that the sheep graze underneath the panels as well it dual agri use

 

[Wooly]

The grass between the panels is not rateable. That is just grass.
You graze that don't you.
Has that been taken into account?

That what the solar parks say to reduce the rates

I think you can argue that the sheep graze underneath the panels as well it dual agri use

The panels are on the roof !! I didn't think about planting grass with them !

 

[rollestonpark]

Well if on the roof of a farm building, business rates don't apply

 

[Wooly]

Well if on the roof of a farm building, business rates don't apply

Could you tell that to the valuation office then. They have different ideas

 

[rollestonpark]

Having looked online, it looks like the rates have recently changed to include agricultural buildings with solar on.

So I'm fairly sure I'm wrong, what I said before.
Can't believe they're taxing roof solar in this way.
Just another nail in the coffin for roof mounted solar.

Wonder what they'd say if you said, in that case I'll remove it

 

[rollestonpark]

Does the power flow into the farm house as well?

You could argue that this is also being used domestically. Solar for domestic use is exempt I believe.

Check online

 

[rollestonpark]

Also just thought, many electric meters show import and export on them.
If there is very little export on there, you can prove that you use the power

 

[Exfarmer]

Could you tell that to the valuation office then. They have different ideas

For a couple of hundred pounds, you could get a meter to monitor your exports, but it may not come up with the right answer..
I think the NFU should be bought into this if you are a member.

 

[gavztheouch]

I use about 35,000 units of electricity on the farm each year, my solar generates the same amount each year. I would like to think the government would see this as 100% usage even if I only use 1/4 of the actual electricity coming from the panels because it's not generating when I need it all the time. I know this isn't probably how they will see it.

 

[f0ster]

a single phase meter costs about £30 and a three phase meter costs about double, you could easily add a meter to the meter tails at the incoming that would measure all out going electricity. if you do not already have an import export meter which below 30kw is not needed.

 

[Morayman]

Still a bit baffled here. So will a 20 Kw wind turbine generating about 40,000 Kw annually be subject to business rates?

if:

There's no business involved, and no export meter to show proportion used against proportion exported. The house is large (seven bedrooms) and I have a letter from a governmental department of Energy and Climate Change (or such like) stating that I'm a domestic consumer. This came about because I had a 60kw biomass boiler installed early on, and found I couldn't claim a subsidy payment because domestic consumers can only claim for a maximum of a 40kw biomass boiler. Absolute stupidity when even the installer stated he wasn't allowed to install an unsuitably small boiler!

I was so pee'd off that I then threw up a wind turbine after checking a bit more carefully, but before the payments went down too much. However if they are going to start rating the things in a retrospective tax I will be less than impressed!

 

[akaPABLO01]

Still a bit baffled here. So will a 20 Kw wind turbine generating about 40,000 Kw annually be subject to business rates?

if:

There's no business involved, and no export meter to show proportion used against proportion exported. The house is large (seven bedrooms) and I have a letter from a governmental department of Energy and Climate Change (or such like) stating that I'm a domestic consumer. This came about because I had a 60kw biomass boiler installed early on, and found I couldn't claim a subsidy payment because domestic consumers can only claim for a maximum of a 40kw biomass boiler. Absolute stupidity when even the installer stated he wasn't allowed to install an unsuitably small boiler!

I was so pee'd off that I then threw up a wind turbine after checking a bit more carefully, but before the payments went down too much. However if they are going to start rating the things in a retrospective tax I will be less than impressed!

Suck it up son. You still have an investment made that’ll return at least 12%> plus offset.

I interpret it like this. ANYTHING over 10kW is subject to business rates calculated on your usage versus investment capital with return and usage. If you can prove you use 90% generation you become exempt. No excuses, prove it or pay it.

Business rates are audited every 5 years. I think renewables gets 5 year grace from commission, maybe they are graced until the next 5 year audit which means if your yard was audited 3 years ago you may get 2 years grace?

Under 10kW are exempt.

It’s the government, and they think 12% is enough.

 

[Morayman]

Well if it’s down to a 12% return I’m comfortably under it

 

[Morayman]

Not only that if I’m now classed as a business the f******* can back pay me a subsidy on the biomass install

 

[akaPABLO01]

Not only that if I’m now classed as a business the f******* can back pay me a subsidy on the biomass install

Only renewables are retable your yard is classed the same as it was.

 

[Wooly]

Update time : A court summons arrived this morning for non payment of Business Rates even though we have appealed against them with advice gained from here and the Gov website.

The cheeky b##tards have now back dated the rates for an extra year.

So now over half my solar panel income goes in tax !

Going green wasn't worth it.

 

[rollestonpark]

Tell them you'll remove them as they are worth more to sell on, than they are to you with the tax.

I have been also told that if you put them in another companies name, which doesn't own the shed they sit on, most of this tax can be avoided

Not exactly sure how this works. But comes from an industry source.

A bloody tax on being green. Clearly going green is maybe not a good idea