In a letter, Good Energy CEO Juliet Davenport said that solar energy coupled with battery storage is an excellent way to help the UK meet its legally binding target to reduce greenhouse gas emissions.

“The UK risks losing out if policy blockers are put in the way,” she writes. “There are more than one million solar PV installations now in operation across the UK. Their sum capacity totals more than our single biggest power station.

“This has grown from near-zero within 10 years, showing what can be achieved when we encourage people to be part of the solution to climate change. We need to ensure that this momentum is not lost.”

The current plans come into effect on 1 October, although a petition on the issue has received more than 17,000 signatures.

Good Energy currently has around 250,000 customers and was the sole electricity supplier to be exempted from energy price caps last month as it is able to trace all of its power back to renewable sources.

Davenport’s letter also has the support of Nina Skorupska, chief executive of the Renewable Energy Association, Alice Bell of 10:10 Climate Action and Aaron Kiely, climate campaign lead at Friends of the Earth.

Current rules mean anyone buying solar panels or other electricity storage for their homes are charged 5 per cent VAT, but an EU ruling in 2015 said the UK Government must charge the full 20 per cent.

Negotiations led to the Government and EU agreeing that the 20 per cent level only needs to be charged for technology over a certain threshold, but Good Energy warn this could stifle innovation.

Kit Dixon, Good Energy’s regulatory affairs officer, explained: “It penalises people who want to use the best technology. If you have panels and a battery installed in your home or business, you’ll almost certainly be above that threshold.

“The energy system is changing and more homeowners and businesses do want to invest in this kind of technology and it is vital we see an uptake from this tech.”

He added that last month’s blackout across large parts of the country could be avoided in the future if more households generated their own electricity and relied less on the national grid.

An HMRC spokesperson said: “The Government is committed to greening our economy and designed the changes for energy-saving materials to retain as much of the VAT relief as possible for UK households, while complying with EU law.

“While the UK remains a member of the EU, the Government is obliged to make these changes which were approved by Parliament on 25 June and will take effect from 1 October 2019. As all taxes are kept under review, it may be possible to amend these rules once the UK has left the EU.”

In a letter, Good Energy CEO Juliet Davenport said that solar energy coupled with battery storage is an excellent way to help the UK meet its legally binding target to reduce greenhouse gas emissions.

“The UK risks losing out if policy blockers are put in the way,” she writes. “There are more than one million solar PV installations now in operation across the UK. Their sum capacity totals more than our single biggest power station.

“This has grown from near-zero within 10 years, showing what can be achieved when we encourage people to be part of the solution to climate change. We need to ensure that this momentum is not lost.”

The current plans come into effect on 1 October, although a petition on the issue has received more than 17,000 signatures.

Good Energy currently has around 250,000 customers and was the sole electricity supplier to be exempted from energy price caps last month as it is able to trace all of its power back to renewable sources.

Davenport’s letter also has the support of Nina Skorupska, chief executive of the Renewable Energy Association, Alice Bell of 10:10 Climate Action and Aaron Kiely, climate campaign lead at Friends of the Earth.

Current rules mean anyone buying solar panels or other electricity storage for their homes are charged 5 per cent VAT, but an EU ruling in 2015 said the UK Government must charge the full 20 per cent.

Negotiations led to the Government and EU agreeing that the 20 per cent level only needs to be charged for technology over a certain threshold, but Good Energy warn this could stifle innovation.

Kit Dixon, Good Energy’s regulatory affairs officer, explained: “It penalises people who want to use the best technology. If you have panels and a battery installed in your home or business, you’ll almost certainly be above that threshold.

“The energy system is changing and more homeowners and businesses do want to invest in this kind of technology and it is vital we see an uptake from this tech.”

He added that last month’s blackout across large parts of the country could be avoided in the future if more households generated their own electricity and relied less on the national grid.

An HMRC spokesperson said: “The Government is committed to greening our economy and designed the changes for energy-saving materials to retain as much of the VAT relief as possible for UK households, while complying with EU law.

“While the UK remains a member of the EU, the Government is obliged to make these changes which were approved by Parliament on 25 June and will take effect from 1 October 2019. As all taxes are kept under review, it may be possible to amend these rules once the UK has left the EU.”