But at the same time the government is aiming for 15 per cent of the UK’s final energy consumption to be derived from renewable energy sources.
In 2013, the Department of Energy and Climate Change said the proportion was just 5.2 per cent, meaning there is a long way to go.
With many renewable energy sources taking the form of smaller, niche businesses requiring additional funding, the removal of tax incentives as utilised through EISs and VCTs is a potential headwind for the sector.
That said, EISs and VCTs on their own remain a solid tax-efficient investment vehicle, with both schemes offering income tax relief of 30 per cent.
In addition, EISs qualify for business property relief after two years, removing them from an estate for inheritance tax purposes.
But from April 6, the qualifying investments become a little less unusual.
Nyree Stewart is features editor at Investment Adviser
