One of the most overlooked advantages of installing solar panels or batteries for your business is tax relief. In the UK, several schemes help reduce your upfront costs. The Annual Investment Allowance (AIA) lets most companies deduct 100% of qualifying spend (up to £1m) in the same year. Solar panels are treated as “special-rate assets,” meaning they don’t qualify for full expensing, but they can still be written off via AIA. Batteries, on the other hand, may count as main-rate plant & machinery, making them eligible for full expensing in some cases. If not, AIA still applies. The result? Significant tax savings that shorten payback times. A good accountant will model the split for your system so you can optimise your claim. Stack this with other incentives, and commercial solar looks even more compelling.
Tax Reliefs for Commercial Solar & Batteries in the UK
One of the most overlooked advantages of installing solar panels or batteries for your business is tax relief. In the UK, several schemes help reduce your upfront costs. The Annual Investment Allowance (AIA) lets most companies deduct 100% of qualifying spend (up to £1m) in the same year. Solar panels are treated as “special-rate assets,” […]
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