Government legislation for the 2012/13 tax year will see HMRC capital allowances for solar power installations by agricultural corporations lessen from £100,000 to £25,000, but corporations still have time to enter into an agreement with a solar PV installer and benefit from the larger allowance figure.
The reduction in capital allowance will coincide in timing with a prospective reduction in Feed In Tariffs for solar PV, which will lower the earnings on a solar installation as effectively as drastically cut down tax relief for the 2012/13 year. Delaying the decision to invest in solar now could outcome in a farmer missing out on 25 many years of income.
A professionally managed planning application for a roof-based mostly solar PV installation requires at least ten weeks, and applications to the Electricity Network companies can be complex, so farmers need to finalise the detail of their installations to enable an installer to acquire approvals in time for the April deadline.
It is critical to operate with an seasoned agricultural solar PV company who has the technical expertise to assure that all roof-based installations ordered by 31 December 2011 be installed in time to qualify for the existing capital allowances. Of distinct value is experience in dealing with roof strength, network strengthening, asbestos and ammonia rich atmospheres which are distinct to agricultural environments.
As effectively as creating absolutely free electricity to feed a farm’s very own consumption, many roof based mostly solar PV installations develop surplus energy which can be sold into the National Grid. This offers the business with a Feed in Tariff [Match] payment for each and every unit of electrical power produced, as effectively as a payment for every single unit exported for a period of 25 many years, and Fit payments will enhance yearly in line with the Retail Price tag Index.
With each other with the Feed in Tariffs, the current HMRC capital allowances deliver for quickly pay out-back periods and high returns on solar PV installations, quickly placing farmers in the position where they have cost-free electrical power for their own use, lowered tax bills, and, an attractive further revenue stream.
If there are two factors that had been produced for every single other, it is farmers and renewable energy. These corporations present a considerable component of the alternative to the UK’s power and meals safety and can support to lower carbon footprint. Farmers have a unique and immediate chance to diversify their organization into the solar energy generation marketplace – and there are tremendous capital incentives to act now.
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