Solar power is on the horizon as being one of the most compelling new options in the future. But you may not know that if you’re following along with what the government in the UK is trying to do. You see, there is a new tax that is in play, and it’s causing the cost of solar to be quite expensive and out of reach of many consumers.
The government is being accused of pushing out the solar energy industry, all because it could very well create a very unstable, and inexpensive industry. But if you really look at this, you’ll realise that it will mean that the government will not have a subsidy involve, therefore they will not make money or be involved in the electrical power of society overall.
Not Just Solar
Before getting too far into it, consider that the UK has also caused serious issues with alternative energies of other types. Specifically, the government tried to halt the spread of wind farms that would harness the power of the wind to form electrical current. Wind farms take gusts of wind into windmills that then fuel energy elements. The rising energy prices is one of the reasons why consumers are looking towards alternative fuels, but the Treasury makes money through business taxes and other elements, making solar paneling and even wind energy quite more expensive than traditional means. They are essentially pushing things away from the consumer.
Solar industry disruption
The solar industry is seeing changes in the taxes needed to collect on solar schematic installation. The domestic installations many have found are now increasing in terms of VAT to 4 times higher than usual. That’s an increase from 5% to 20% which is putting a damper on the industry as a whole.
This is a major element that is hard to understand, until you realize that the government has auction contracts to supply electricity elements at the lowest price. It’s in their best interest to cause solar panel and alternative energies to be inferior in terms of price to the options that favor their personal gains.
Countering The UK Government
The Solar Trade Association will meet with officials from the UK government in order to try and change things a bit. The goal is to create an equal competitive field for power and energy. Since fossil fuels are no longer considered viable for the future, solar paneling and alternatives should not be downcast, but rather celebrated, according to the association.
Not only will the association meet with Jane Ellison, the Financial Secretary to the Treasury, but they will also have a group of children deliver a letter that will ask to reduce tariffs. The reason why? Because Eleanor Palmer Primary in Camden, London received an installation of solar panels on their school, and the tax would affect other schools from getting similar options. The school will have to pay a new tax on these elements, which is not what private schools will have to endure, making this a solution that is quite difficult for public schools to manage overall.
Reversing The Damage
Since 2015, conservative leaders in the UK have aimed to cause the solar energy industry to stifle. The STA noted that there have been job cuts into the tens of thousands due to the continual pushing of the UK government away from successful solar energy options. This could end up causing a serious damper on what consumers can do in the future, and could very well cause a serious lack of competition, and opportunity for alternative energies to thrive in the near future. STA officials spoke to the media and discussed that the solar jobs and the industry as a whole cannot thrive if the UK government continues to push back against the benefits and money saving options that come with solar energy overall.
Fair Tax Treatment
The STA and other energy leaders have appealed to the government to lower taxes, and to treat solar energy much like they have allowed fracking companies to thrive in the area. The goal is to provide a good source of renewable energy, without the high costs of traditional options. Fair tax treatment should not be an afterthought, but rather a primary element of what individuals should be considering overall.
With the constant petitioning, the UK government may very well change their minds, but until then, taxes, and high costs can stifle a lot of the work that solar energy companies are trying to do for now.