R&D tax relief in sustainable energy

The Government’s mission to Make Britain a Clean Energy Superpower – supported by the Clean Power 2030 Action Plan – suggests sustainable energy is set to become a leading sector in research & development (R&D) tax relief.

With only five years to meet Clean Power 2030 targets, the Government will be investing an average of £40 billion into sustainable energy infrastructure and research projects every year.

Therefore, there is great potential for sustainable energy businesses to engage in research activity and claim thousands of pounds in R&D tax credits.

A successful claim could leave your client thousands of pounds better off, boosting the level of capital they can reinvest into their business.

However, we know that R&D for accountants can be challenging, since most lack the time or specialist knowledge to navigate the complexities of the R&D tax relief scheme.

At randd uk, we have a proven and lengthy history of helping accountants secure tax relief for their sustainable energy clients.

What kind of sustainable energy activities qualify for R&D tax credits?

The sky’s the limit when it comes to R&D activities in the sustainable energy sector – as long as they meet the qualifying criteria.

As a reminder, in order to qualify for R&D tax relief, a research project must:

• Seek an advance in science and/or technology in an overall field.
• Involve scientific or technological uncertainty.

The claimant must be able to explain the work they did to overcome the uncertainty.

Examples of eligible R&D activities in the sustainable energy sector include:

• Producing items more cost-efficiently with high safety standards.
• Overcoming uncertainty such as weather interference and environmental concerns.
• Achieving scientific or technological breakthroughs in renewable energy generation.
• Developing new storage technologies for renewable energy.
• Building and testing new tidal power energy systems.
• Improving energy efficiency and reducing carbon emissions in existing systems.

Remember that you can even claim R&D tax relief on costs arising from unfinished or abandoned research projects.

randd uk’s R&D tax consultants can help you understand whether a sustainable energy project qualifies under the scheme.

What costs can be claimed?

Eligible costs for R&D tax relief in the sustainable energy sector include:

• Consumable materials.
• Software and equipment used directly in R&D activities.
• Wages, National Insurance, and pension contributions for staff directly involved in R&D work.
• Power and utilities used in the process.
• Subcontracted and external staff costs.

Our specialist R&D tax consultants can help you identify qualifying costs.

How do I claim R&D tax relief for my sustainable energy client?

With the Government actively investing in and encouraging sustainable energy innovation, R&D tax relief provides an excellent opportunity to access financial support for research projects.

Accountants looking to claim R&D tax relief for their sustainable energy clients need to submit a detailed report outlining their R&D activities, the technological challenges faced, and how the project aimed to overcome them.

While the process can seem complex, working with an expert in R&D tax claims can simplify the process and help ensure that all eligible activities are captured.

At randd uk, we offer a bespoke and tailored service to maximise your client’s claim.

We offer accountants R&D assistance with all aspects of the process, from preparing a robust claim to resolving any challenges from HMRC.

Get expert support with your client’s R&D tax claim by contacting our specialists today.

Adam Bointon

Adam Bointon is a Technical Director specialising in R&D Tax Credits for SMEs in manufacturing and software sectors. With over 15 years’ experience, he works closely with businesses to identify qualifying R&D activities and prepare clear, compliant claims. He combines technical expertise with a strong understanding of economics and finance to support successful outcomes. Adam also contributes to industry webinars and CPD sessions, sharing insights on R&D tax relief and HMRC requirements.