The state of renewable energy – infographic
Renewables are big business, and are increasingly viewed as commercially viable, as well as kinder to the envi...Read More
The recent budget confirmed the removal of the Climate Change Levy (CCL) exemption for renewable electricity. The implications for SMEs are significant.
The budget was marked by substantial cuts to government spending to move towards the aim of eliminating the deficit. While the reductions in benefits attracted the most attention, changes to the renewable energy market could have more impact on small to medium sized businesses.
Renewable source electricity (RSE) will be liable for the Climate Change Levy (a tax on energy delivered to non-domestic users in the UK) after Levy Exemption Certificates (LECs) are dropped (although there is no timetable). Power generated by wind, solar or other sustainable sources will be more expensive, with the increases in price likely to be passed to business customers. You can find more of the detail in the official government document.
Some observers see this as a necessary reduction in expensive subsidies: the Chancellor said the removal of the exemption will earn the Treasury £450 million in 2015/16, rising to £910 million in 2020/21. But others complain that the move sets back the UK’s journey to becoming a low-carbon economy, especially as the government has been supportive of fracking and has lowered taxes on North Sea oil and gas.
RenewableUK, the trade association representing the wind, wave and tidal energy industries, is one of the critics. Its Director of Policy, Dr Gordon Edge, called it “a punitive measure for the clean energy sector” that undermines “vital financial support for renewable energy producers” and constitutes “another example of this Government’s unfair, illogical and obsessive attacks on renewables”.
“We’re suddenly looking at a substantial amount of lost income for clean energy companies which was totally unexpected,” Edge added. “Levy Exemption Certificates account for just over 6% on onshore wind generators’ revenues.”
While generators fret about projects slipping into unprofitability, there may be an unexpected silver lining for small to medium sized companies. As suppliers scramble to find customers for their renewable sourced electricity, there are eye-catching discounts on green energy, at least in the short term.
For SMEs looking to ‘go green’ there has never been a better time. Even those more motivated by price might be surprised by how much cheaper electricity rates have become. For a fast expert overview of your options just fill in the form at the top right of this page or call 0330 0100 251. You could be getting cheaper, greener energy in just 20 minutes.
"Many thanks to Anthony Pendleton, very courteous and polite, explained everything in right amount of detail and very helpful in sorting out the business utility switch. Would thoroughly recommend."This review was posted by Nicola on the 28th of November 2016
"Rachael Grindrod was excellent, very friendly and helpful."This review was posted by Maria Allen on the 29th of November 2016
"Thanks to Jonathon Burgess who was a great help switching electricity for a charitable organisation. The process was complicated and his patience was appreciated as well as his proffesional attitude. We would not have completed the process without his help. Thanks Dawn"This review was posted by Dawn Kerr on the 29th of November 2016
Great service from Rachel Grindrod. Thanks.
"Great service Rachel"This review was posted by Craig Hewett on the 30th of November 2016
Easy to Switch
"Using SwitchMyBusiness made changing electricity suppliers easy. Thank you Anthony Pendleton for your professional approach with advising on which supplier to use."This review was posted by Vanessa Gernat on the 01st of December 2016