Rt Hon Greg Clark
Secretary of State for Business, Energy and Industrial Strategy
1 Victoria Street
SW1H 0ET

27^th July 2016

Dear Greg,

Re: Changes to Business Rates affecting Solar Power Generation from Rooftop Panels

It has come to my attention that the current review by the Valuation Office Agency of Business Rates in the UK may have serious financial implications for businesses, community groups and others who have installed solar photovoltaic (PV) panels on their rooftops.

According to the Solar Trade Association, the changes that will come into effect on the 1st April 2017 may lead to a six to eightfold increase in Business Rates. This may make installing and running solar PV economically unfeasible for thousands of organisations across the UK. Given the urgent need to decarbonise our economy and the important role that solar must play, this would be a worrying and deeply regressive development. It also seems like an unfair and disproportionate tax rise.

The International Energy Agency is predicting that solar could be the largest source of electricity globally by 2050, whilst since 2009 the costs of solar photovoltaic modules have fallen by 75%. Recent estimates suggest that prices could fall by a further 60% by 2025 if the industry receives the right investment. Here in the UK, grid parity for solar power could be reached within several years - but government backing is needed to make this happen. Ensuring those who are supporting the zero-carbon transition are not financially penalised is of the utmost importance.

I am therefore writing to ask what assessment the Department for Business, Energy and Industrial Strategy has made of the impact on the solar rooftop generation in the UK of these Business Rates changes; and if he has spoken with colleagues in the Department for Communities and Local Government and the Treasury about ensuring these changes do not unfairly and disproportionately impact rooftop solar power generation.

Yours sincerely,