The Department for Energy Security and Net Zero (DESNZ) has announced a long duration energy storage (LDES) cap and floor investment scheme to help bring forward more energy storage schemes. DESNZ said the scheme would be administered by Ofgem and is intended to support a significant uplift in the UK’s energy storage capacity.
In a much-needed move towards energy efficiency, the government has unveiled plans to grant tax relief on battery storage systems.
Long Duration Electricity Storage investment support scheme will boost investor confidence and unlock billions in funding for vital projects. The UK is a step closer to energy independence as the government launches a new scheme to help build energy storage infrastructure.
“It’s fantastic that the government has extended tax relief on battery storage systems. The expanded VAT relief aligns with the UK’s commitment to reducing carbon emissions and promoting green energy solutions.
Effective 1 February 2024, the UK government has exempted retrofitted battery energy storage systems (BESS) from the 20% VAT. This recent and welcomed development means homeowners looking to upgrade their homes with energy storage now enjoy the same tax benefits as those incorporating energy-saving materials like heat pumps and roof-mounted solar.
Credit: David Pimborough / Shutterstock. The government of the UK has launched a new investment support scheme aimed at bolstering the country’s energy storage infrastructure. The initiative aims to encourage the development of long-duration energy storage (LDES) facilities, which have not seen significant investment in nearly four decades.