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SOLAR ENERGY FOCUS

2. TYPES OF INCENTIVES AVAILABLE

2.1 Enhanced Capital Allowances scheme (ECAs): Enables
business to claim a 100% first year capital allowance on
investments in certain energy saving equipment, against
the taxable profits of the period of investment.

2.2 Exemption from the Climate Change Levy (CCL): CCL
is a tax on the amount of non-renewable energy used by
most business and public sector bodies paying VAT at
the standard rate. Any supply from renewable sources is
automatically exempt from CCL, as are businesses that
use small amounts of energy, domestic customers and
charities engaged in non-commercial activities.

2.3 Renewable Obligation Certificates scheme (ROCs): You
can receive a financial subsidy for generating renewable
power under the ROCs if you have any type of renewable
electricity generation producing over 50 kW. For every
MWh you sell under the ROCs, you’ll receive renewable
obligation certificates (ROC) which can be sold to suppliers
to help them meet their renewable energy generation
target.
The ECA and CCL do not currently have an end date
whereas the Renewable Obligation (RO) is currently
scheduled to end in 2037.

2.4 Renewable Heat Incentive scheme (RHI): Non-domestic
generators of renewable heat and producers of renewable
biogas and biomethane in England, Scotland and Wales
can receive quarterly payments for 20 years under the
RHIs.
2.5 Feed-In Tariffs (FITs): These are incentives for small-
scale (up to 5MW) renewable electricity generation. If
your solar PV or wind installation’s Declared Net Capacity
is greater than 50 kw up to and including 5MW or you
have anaerobic digestions and hydro installations up
to and including 5MW you can apply for a ROO-FIT
accreditation. You will receive confirmation of ROO-
FIT status by email from Ofgem. You can then register
with your chosen FITs-licensed supplier to receive your
quarterly FIT payments.

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