Pension fund rules stifle solar on warehousing
A solar energy provider has called for the Government to rethink pension fund rules as UK industrial properties owned by pension funds could be missing out on solar panel opportunities.
By Simon Duddy, Editor, Logistics Matters
THE ISSUE focuses on items that are classed as Tangible Moveable Property (TMP). They include works of arts, desks, chairs, computer equipment and plant and machinery, but could also extend to less obvious assets such as solar panels and wind turbines.
As a pension fund cannot own an asset that is moveable it means pension owners may not be allowed to acquire and install solar panels if they are judged to be tangible moveable assets. In addition, pension funds cannot trade so pension owned commercial buildings would not be able to sell energy from PV installed on their roofs. The current rules put the onus on pension scheme administrators to make the decision about whether a solar installation could be classified as such.
SolarSense chief executive Ashley Wood believes the HMRC’s stance not to give rulings on particular proposed investments by a registered pension scheme, including the installation of solar panels is ‘acting as a major and unnecessary barrier to organisations looking to save significant money on their energy bills, as well as progression towards net zero’.
Wood adds: “Not only will the current TMP rules stop significant numbers of industrial landlords from installing solar, their tenants also will not be able to fit PV because they don’t own or rent the roof. The only way to get by this would be to rent the roofspace separately, but the legal costs would be prohibitive.
“The rulings are too vague and confusing, which means tenant and pension owners will not risk installing solar panels. With the world having transitioned significantly to renewable energy in the last decade since TMP regulation was last looked at, its high time for a review to ensure it is fit for the new energy landscape.”
Wood has written to Ed Miliband, Secretary of State for Energy Security and Net Zero. In his correspondence he writes: ‘The government needs to inform HMRC that PV systems are not considered as tangible moveable assets so the pension fund can acquire solar panels and sell renewable energy to their tenant. This is because solar panels are permanent fixtures and cannot be removed without damage occurring, both exemptions to being classified as tangible moveable property.
‘Pension funds own a lot of warehousing, which are absolutely prime for introducing solar but could miss out on the opportunity due to solar panels being judged to be tangible moveable assets’.
