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Solar Power: VAT

Question for Department for Business, Energy and Industrial Strategy

UIN 259405, tabled on 3 June 2019

To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions he has had with the Chancellor of the Exchequer on planned future VAT increases on solar panel installations.

Answered on

6 June 2019

Solar PV is a UK success story, with rapid deployment over the last 8 years, over 99% of the UK’s solar PV capacity has been deployed since May 2010. We are already exceeding our 2020 projections today, with over 13GW of solar capacity installed in the UK, enough to power over 3 million homes.

I regularly discuss a range of issues with my rt. hon. Friend Mr Chancellor of the Exchequer. HM Treasury’s proposed changes reflect the strong result we negotiated on behalf of industry; solar installations should be largely unaffected where material costs make up less than 60% of total installation costs.

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