For any company within the renewable energy sector, research and development (R&D) could not be a more important aspect of your business. Right at the forefront of our transition into a greener and more sustainable society, there are few industries that have as much impact on our daily life as this one.

With millions of pounds being spent on innovation within the renewable energy sector every year, there is a massive opportunity for businesses to claim back a proportion of their spend to reinvest in further innovation, or use for another requirement of their choosing. Despite this, many firms are unaware that they can make a claim, or think that the process will take too much time to be worthwhile.

In this article, we’re taking a closer look at some of the research and development activities that are carried out in the renewable energy sector and how much a claim could be worth for your business.

Examples of R&D in renewable energy

Despite the huge amount of innovation taking place within this industry, it can still be a surprise to understand exactly how many activities you are eligible to claim back for tax relief. A few examples that we’ve come across in the past include (but are not limited to):

  • Researching and building prototype solutions for new, or improving existing technologies
  • Creating improved fuel efficiency solutions, reducing the need for fossil fuel consumption or manufacturing sustainable fuel solutions
  • Increasing energy production outputs, reducing inefficiencies or improving on existing performance capabilities
  • Reducing carbon footprint and emissions and mitigating the effects of environmental impacts
  • Reducing the cost of building and or commissioning systems
  • Modernising technologies and processes by integrating new or improved technologies
  • Improving system usability and safety measures with either new processes or developing existing processes
  • Collaborative research studies with third-party institutions and/or organisations

How much could a claim be worth?

R&D tax credits can provide you with an invaluable source of funding to help boost your innovative ambitions and help you to grow your business at a much faster rate than would have previously been possible. If you’ve not made a claim in the past, you can typically receive R&D tax relief for your last two completed accounting periods.

If you’re a profit-making business, you can receive up to 25% credit back from your eligible R&D expenditure, or up to 33.35% if you’re loss-making.

The most recent R&D statistics report from HMRC breaks down average claims by sector, and although renewable energy is not listed out separately, it shows that the average claim for businesses within the electricity, gas, steam & air conditioning sector was £64,516, and £52,632 for water, sewerage and waste. This indicates a huge opportunity for any business who has not yet made a claim.

How can Taxar help?

At Taxar Innovation Partners, our aim is to deliver the most comprehensive and robust R&D tax relief claim process possible for our clients, helping you in two distinct but connected ways.

Our first step is to provide an efficient and responsive R&D tax relief claim service that will not only provide you with access to funds, but ultimately add value to your innovation aspirations as well.

We also offer a consultancy service designed to help create and implement an innovation strategy for your business that is successful and sustainable.

If you’d like to find out more about how we can help your business, please get in touch.