Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Energy and Climate Change, what the implications for her policy on the solar power industry are of the recent European Court of Justice decision on levels of VAT.

HMRC has consulted on removing solar technologies from the list of measures that are currently eligible for the lower (5%) rate of VAT. They are currently considering the responses to the consultation, which closed on 3^rd February[1].

If it is decided that a change to VAT is appropriate, we will consider options on how to maintain a suitable rate-of-return for investors.

[1] https://www.gov.uk/government/consultations/vat-changes-to-the-reduced-rate-of-vat-for-the-installation-of-energy-saving-materials