A renewable energy accountant handles the finance questions generic accountants get wrong in this sector: the SEIS/EIS exclusion of energy generation, solar panels’ special-rate capital allowances treatment, zero-rated VAT on energy-saving materials installations, Innovate UK grant claim reporting, and R&D relief for hardware development. AccTek works with UK cleantech startups, renewables installers and small-scale generators — cloud accounting on Xero, with the sector’s tax traps mapped before they cost you money.
Why clean energy businesses outgrow generic accountants
The sector’s tax rules are full of near-misses — reliefs that almost apply, at rates that almost match what the internet says.
The SEIS/EIS trap
Energy generation is an excluded activity for SEIS and EIS — a fact many cleantech founders discover mid-raise. But cleantech innovation generally qualifies. Which side of that line your business model sits on decides whether your round gets tax relief.
Capital allowances aren’t one rate
Solar panels are special-rate plant — outside 100% full expensing, with a 50% first-year allowance instead — while the Annual Investment Allowance can still cover them in full. Sequencing the claims wrongly leaves money on the table.
Grants create accounting work
Innovate UK funding comes with quarterly claims, cost reconciliations and, above thresholds, independent accountant’s reports — and it interacts with your R&D claim.
SEIS and EIS — the energy generation exclusion
Generating or exporting electricity is an excluded activity for SEIS and EIS, so companies whose trade is energy generation — solar farms, wind projects, generation SPVs — generally cannot raise under the schemes. Cleantech companies whose trade is technology (energy management software, storage or hardware products, monitoring platforms, installation services) generally can. For 2026/27, SEIS offers 50% relief and EIS 30%, so the distinction is worth confirming with HMRC advance assurance before you raise.
For the full model-by-model breakdown — installers, storage, EV charging, hydrogen — see our SEIS and EIS for cleantech guide. AccTek prepares and submits advance assurance applications with the trade analysis HMRC needs. Start with our SEIS advance assurance service.
Capital allowances on renewable energy assets
- Full expensing: 100% first-year allowance on main-rate plant and machinery for companies — but solar panels are special-rate, sitting outside it, with the 50% first-year allowance applying instead
- Annual Investment Allowance: £1m per year, covering special-rate assets (including solar) at 100% — often the better route for installations under the AIA ceiling
- Battery storage, EV charging infrastructure and heat pump systems each have their own classification questions — we map the claim before the purchase order, not after
- Planning the order of claims across AIA, full expensing and the 50% FYA is where the value is — the full asset-by-asset map is in our renewable energy capital allowances guide
Grants, R&D and the funding stack
- Innovate UK grant accounting: claim preparation, cost category reconciliation, and readiness for the independent accountant’s reports larger awards require — see our Innovate UK grant accounting guide
- R&D tax relief: cleantech hardware and deep-tech development frequently qualifies under the merged scheme — and under the merged scheme, grant funding no longer blocks a claim the way it did under the old SME scheme. The interaction still needs mapping per project
- Knowledge-intensive company status: heavy R&D spend can raise your EIS limits — relevant if your trade qualifies
VAT for renewables installers
Installations of energy-saving materials — solar panels, battery storage, heat pumps and insulation — are zero-rated for VAT until 31 March 2027 when supplied and installed together in residential or qualifying charitable buildings, reverting to 5% from 1 April 2027. Commercial buildings don’t qualify, supply-only sales don’t qualify, and subcontracted works have their own treatment — so installer invoicing needs to be right, job by job.
We set up your invoicing and Xero tax codes so the zero rate is applied where it’s due and nowhere it isn’t.
What’s included
- Company accounts and Corporation Tax for startups, installers and generation SPVs
- Xero setup with job-level tracking for installers and project-level tracking for grant-funded work
- Capital allowances planning across AIA, full expensing and first-year allowances
- VAT — energy-saving materials zero-rating compliance, partial exemption where it arises, domestic reverse charge awareness for construction-adjacent work
- Grant claim preparation and Independent Accountant’s Report readiness and coordination
- R&D claims and SEIS/EIS advance assurance preparation
- Management accounts, payroll, PAYE and EMI option schemes
Grant claim due, board pack overdue — and you still don’t know this month’s margin?
Nella is an AI finance assistant that connects to your Xero, QuickBooks, Sage or FreeAgent data and answers plain-English questions about cashflow, runway, tax deadlines and KPIs — with a monthly management pack built from your ledger. Nella shows you the numbers; your accountant advises you on them.
Renewable energy accountant FAQs
Do renewable energy companies qualify for SEIS or EIS?
It depends on the trade. Energy generation and export are excluded activities, so generation businesses — solar farms, wind projects — generally can't raise under SEIS or EIS. Cleantech companies selling technology, software, hardware or installation services generally can. HMRC advance assurance is the reliable way to confirm the position before raising.
Can I claim full expensing on solar panels?
No — solar panels are classed as special-rate plant, so they sit outside 100% full expensing; the 50% first-year allowance applies instead. However, the £1 million Annual Investment Allowance covers special-rate assets at 100%, so for most installations the AIA is the better first claim. The right sequencing depends on your total capital spend in the year.
Is VAT zero-rated on solar panel installation?
Yes, until 31 March 2027 — the installation of energy-saving materials, including solar panels and battery storage, is zero-rated when supplied and installed together in residential or qualifying charitable buildings. The rate reverts to 5% from 1 April 2027. Commercial buildings and supply-only sales don't qualify.
Can cleantech startups claim R&D tax relief?
Frequently, yes — hardware development, storage technology, energy management systems and materials work often involve the scientific or technological uncertainty the merged R&D scheme requires. Grant-funded projects can generally still claim under the merged scheme, though the interaction should be mapped per project.
What does a renewable energy accountant do that a general accountant doesn't?
Beyond accounts and tax: the SEIS/EIS energy-generation analysis, special-rate capital allowances sequencing, energy-saving materials VAT zero-rating compliance for installers, Innovate UK grant claim reporting, and R&D claims for cleantech hardware — the sector-specific rules where generic advice goes wrong.
Related startup services
Godwin Pinto ACA (ICAI) is the founder of AccTek and a member of ICPA, with 20+ years of experience in accounting and tax for contractors, startups and SMEs. Previously at PwC.
Official guidance: energy-saving materials VAT relief is set out in HMRC’s ESM guidance, capital allowances first-year allowances at full expensing guidance, and SEIS applications at HMRC’s SEIS guidance. AccTek Ltd is an independent accountancy practice and is not affiliated with HMRC or GOV.UK.
Clean energy finance, without the near-misses
Accounts, tax, capital allowances, grants and fundraising support — from accountants who know where the sector’s rules actually sit. Get a fixed monthly quote in about two minutes.
