tax super-deduction – act now so you don’t miss out!

One of the common questions we get asked, is how can I get help to afford Solar and what grants are available. Grants are usually specific to regional councils, however every business in the UK can take advantage of the Government Super-deduction tax Incentive... but only until March 2023.

Installed Solar Systems are eligible for Super-deduction.

If you’ve spoken to us about buying a solar installation for your business, we will have already shared some information with you regarding the Government super-deduction. However, we’re raising it again with a level of urgency, as this incentive is due to end in March 2023.

We don’t want our clients to be in a position like many were when they initially missed out on the great rates provided by the feed-in tariff before that came to an end.


Recapping the Super-deduction… 

In 2021, to speed up the post-Covid recovery, the UK Government created the biggest two-year tax break for businesses in British history. One element of the plan was the 50% First Year Allowance (FYA). To claim this tax break, businesses must invest in qualifying plant and machinery by 31 March 2023. Commercial solar panels are qualifying investments. This means businesses that buy and install a commercial solar system before 31 March 2023 can claim back 50% of the cost in the first year, instead of the standard 6% per year write-down allowance. 


  • For expenditures incurred from 1 April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments. (this includes solar systems!)
  • Under the super-deduction, for every pound a company invests, their taxes are cut by up to 25p.
  • The 50% first-year allowance (FYA) for special rate (including long life) assets until 31 March 2023 for companies.
  • This change makes the UK’s capital allowance regime more internationally competitive, lifting the net present value of our plant and machinery allowances from 30th in the OECD to 1st.


Purchases of solar power systems after 31 March 2023 will still be deductible, but only at the standard write-down rate.


There couldn’t be a better time to invest in solar

A growing number of companies are taking the appropriate steps to reduce their energy consumption and carbon footprints. With this growing adoption of technologies, the requirement for incentives will become less. The businesses that have not taken the steps will be responsible for paying the entire cost themselves.

With the super-deduction due to end extremely soon, we think the best Christmas present you can get for your business is a sustainable investment in solar generation. Please don’t leave it too late, get left behind and miss out on these excellent benefits of early adoption.


If you’d like to know more about buying a considered and tailored solar PV system for your business, leave us a message here and one of our sustainability consultants will be in touch.


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