12 Feb 2021

SO Energy’s mission is to enable customers to achieve net zero carbon emissions. They want to make a greener future accessible to everyone, and they’re working on a number of ways to get closer to that goal.

One of these ways is by installing solar panels and home batteries to turn customers’ homes into mini generators, generating what is currently the greenest electricity available.

Support to scrap VAT on Low and Zero Carbon Products

As part of this, SO Energy has long been supportive of reducing VAT on products that will help them to achieve their mission and benefit the wider renewables industry, and the world as a whole.

It’s troubling, therefore, that at a time when the government needs to make the transition to green energy as easy and affordable as possible, their taxation system is heavily in favor of polluting fossil fuels over clean energy.

UK government’s 2050 net zero emissions target

VAT on solar and batter storage for homes was increased to 20%, while domestic coal remained at the subsidized

In October 2019, on the same day that the UK government debated their new 2050 net zero target, VAT on solar and batter storage for homes was increased to 20%, while domestic coal remained at the subsidized 5%.

As a company that supplies green electricity and installs solar and battery systems, SO Energy doesn’t think it’s a) fair and b) acceptable that VAT on coal is a quarter of what is on home solar systems.

Currently, more government money is being spent on tax breaks for fossil fuel producers than it is on subsidizing renewable energy, with the number at £4 billion a year, in fact.

Urgent need for more investment in renewable energy

SO Energy feels that this is the wrong direction for the country to be heading in. With a global climate crisis that is worsening drastically by the day, they have asked the UK government to recognize the urgent need for more investment in renewable energy.

It’s for this reason that SO Energy supports calls to scrap VAT on low and zero carbon products. The company has signed this petition to the UK Prime Minister demanding that the tax system be reformed to reflect the vital need to accelerate the action in meeting green targets. SO Energy urges all UK residents to sign the petition as well.