- The Spring Statement by Chancellor Rishi Sunak announced the government’s support to Britons and businesses dealing with the cost-of-living crisis.
- Sunak has introduced to cut the 5% VAT on green home improvements to zero.
In a bid to ease the rising electricity bills of UK households, Chancellor Rishi Sunak on Wednesday declared the removal of VAT on green home-upgrade equipment, which would make solar panels about £1,000 cheaper from April.
The Spring Statement declared various measures to support people with their finance after the recent figure from Office for National Statistics (ONS) revealed a jump in UK inflation to 6.2% in February, up from 5.5% in January, which is 30 years high when it stood at 7.1%.
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The VAT cut move has been welcomed by experts and the renewable energy industry. According to the UK government, a typical household having a rooftop solar panel installed will save over £1,000 in tax and £300 on their energy bills annually. But it is still not clear if the tax relief applied only to the purchases of material or product or will be applicable to the installation as installing solar panels costs between £4,800 and £8,000, which is a major expense for the households.
The chancellor said that the government will also reverse the EU’s decision to take hydroelectric and wind turbines projects out of scope and make them eligible for the zero VAT.
Let us look at 4 renewable energy stocks, like The Renewable Infrastructure Group, Good Energy Group Plc, Greencoat Renewables Plc, and Verditex Plc, that you may consider investing in.
The Renewable Infrastructure Group (LON: TRIG)
The Renewable Infrastructure Group is a UK’s leading investment company that focuses its investments on diversified assets generating electricity from renewable sources that contribute towards a net-zero carbon future. The company’s diversified portfolio includes offshore and onshore solar and wind farms in the UK and Europe and has recently announced the acquisition of 7.8% equity interest in the Hornsea One offshore wind farm.
The market cap of the FTSE 250-listed business stands at £3,038.11 million as of 23 March 2022. The company has given its shareholders a return of 7.40% on a one-year basis as of 23 March 2022, while its year-to-date return stands at -0.60%.
The Renewable Infrastructure Plc’s shares closed at GBX 133.60, down by 0.30%, on 23 March 2022.
Also Read: NewRiver REIT, Secure Income REIT: Should you go for these stocks now?
Good Energy Group Plc (LON: GOOD)
Good Energy Group Plc is a British renewable energy company that provides services in the electrification of transport and decentralized renewable energy generation such as domestic solar panels. The company has announced that Zap-Map, UK’s no.1 EV charge point mapping app, has partnered with the RAC. the company holds a 50.1% minority stake in Zap-Map’s parent company Next Green Car.
The market cap of the FTSE AIM All Share-listed business stands at £47.41 million as of 23 March 2022. The company has given its shareholders a return of 28.45% on a one-year basis as of 23 March 2022, while its year-to-date return stands at 24.49%.
Good Energy Group Plc’s shares closed at GBX 307.50, up by 8.85%, on 23 March 2022.
Greencoat Renewables Plc (LON: GRP)
Greencoat Renewable Plc is an Ireland-based renewable infrastructure investment company that invests in assets related to renewable energy. The company has recently proposed placing worth €1.12, under its existing share issuance programme worth €400 million to pursue an attractive M&A pipeline across Europe. The company reported an increase in a portfolio to 25 assets with a net generating capacity of 800MW in FY2021 and has declared a dividend of 6.06 cents for the period, with a target of 6.18 cents per share for this year.
The market cap of the FTSE AIM 100 Index-listed business stands at £845.13 million as of 23 March 2022. The company has given its shareholders a return of -1.29% on a one-year basis as of 23 March 2022, while its year-to-date return stands at 2.23%.
Greencoat Renewable Plc’s shares closed at EUR 1.15, up by 0.15%, on 23 March 2022.
Also Read: BATS, BP, Segro: Are these stocks good bets amid rising inflation?
Verditex Plc (LON: VDTK)
Clean technology company Verditex Plc is engaged in providing new energy solutions to cover surfaces previously never considered suitable for solar power.
The market cap of the FTSE AIM All-Share -listed business stands at £8.38 million as of 23 March 2022. The company has given its shareholders a return of -48.94% on a one-year basis as of 23 March 2022, while its year-to-date return stands at -12.73%. Verditex Plc’s shares closed at GBX 2.40, down by 2.04%, on 23 March 2022.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.