Income Tax (Trading and Other Income) Act 2005 section 782B

Renewables obligation certificates for domestic microgeneration

Section 782B provides an income tax exemption for individuals who receive renewables obligation certificates in connection with electricity generated by a domestic microgeneration system.

• An individual who receives a renewables obligation certificate in connection with electricity generated by a microgeneration system is exempt from income tax on that receipt
• The microgeneration system must be installed at or near domestic premises where the individual lives
• The individual must intend that the electricity generated will not significantly exceed the electricity consumed in those premises
• A renewables obligation certificate is one issued under section 32B of the Electricity Act 1989 or article 54 of the Energy (Northern Ireland) Order 2003