Hydro Energy

BC&A Innovation

R&D Spotlight

Hydropower has long been a cornerstone of renewable energy generation in the UK, particularly in areas with abundant rivers, reservoirs, and tidal resources. While traditional hydroelectric dams have been established for decades, new opportunities in small-scale hydro, run-of-river systems, tidal energy, and wave energy are driving fresh innovation across the sector.

However, developing, improving, and scaling hydro energy systems comes with a host of engineering and environmental challenges. R&D tax relief is designed to support UK companies working to achieve scientific or technological advancements by overcoming technical uncertainties. In the hydro energy sector, this often means engineering solutions that improve efficiency, reliability, or environmental performance, where no obvious solution exists and significant technical problem-solving is required.

Qualifying activities go beyond installing existing turbines or standard civil engineering work. To claim R&D tax relief, your projects must involve experimentation, testing, or development that aims to push the boundaries of current hydro energy capabilities.

Here are some examples of qualifying activities in hydro energy:

Developing New Turbine Designs or Configurations

Engineering novel turbine types or refining existing designs to improve energy capture, especially in low-flow or tidal environments where conventional systems are less effective.

Improving System Efficiency and Reliability

Optimising the performance of turbines, control systems, or energy conversion technologies to increase efficiency, reduce maintenance needs, or handle variable water flow rates.

Overcoming Environmental and Ecological Challenges

Developing fish-friendly turbines, sediment management systems, or other environmental mitigation technologies that reduce the ecological impact of hydro installations.

Advancing Tidal and Wave Energy Technologies

Researching and testing new tidal stream generators, wave energy converters, or floating platforms that withstand harsh marine environments while delivering reliable power.

Solving Structural and Foundation Engineering Challenges

Engineering durable structures or moorings for tidal or wave energy devices in offshore or estuarine environments where tidal forces, waves, and corrosion pose significant challenges.

Integrating Hydro Energy with Energy Storage or Grid Systems

Developing systems that manage variable output, store excess energy, or provide grid-balancing services to ensure hydro energy supports a stable and reliable power supply.

Improving Installation, Maintenance, or Decommissioning Methods

Creating new methods for installing, inspecting, or maintaining hydro systems in remote or underwater environments, particularly where access or environmental risks complicate standard procedures.

Meeting UK Regulatory and Environmental Standards

Developing solutions to meet UK environmental, marine, and energy regulations, particularly where bespoke engineering or validation is required.

If your business is developing or improving hydro energy systems and overcoming technical challenges in the process, you could be eligible for R&D tax relief. This government-backed incentive helps UK renewable energy innovators recover a portion of their development costs, supporting the expansion of sustainable hydropower technologies.

Our Process

What to expect when working with
BC&A Innovation

1. Discovery Call

Book your FREE 15 minute discovery call today to discuss your R&D activity and we'll guide you on best next steps and estimated claim value.

2. Information gathering

Our technical experts and industry specialists will work with you to uncover all areas of work activity eligible under the R&D scheme, ensuring we have everything we need to support a robust, defensible and maximised claim.

3. Create R&D Tax Claim

Our technical experts will write your claim and supporting documents with a clear assessment of your eligible activity and costs, ensuring compliance with the scheme's governance throughout.

4. Approval & Submission

We'll share, for your approval, the claim draft and supporting documentation. We'll explain in detail how we have arrived at our assessment of your claimable activity, costs and claim value. When you're happy, your claim can be submitted as part of your standard end-of-year processes.

5. Liaising with HMRC

Should HMRC require any further information or have queries regarding your claim, we'll liaise with them to ensure speedy payment without any reduction in claim value.

6. Payment

Once your payment is received, we'll send it across the same working day and advise you on processes that can be put in place to make future claims even more hassle-free. Don't worry about claims going forward, we'll be in regular contact to remind you what is needed and when.

About BC&A Innovation

We've helped hundreds of businesses like yours secure millions in Research & Development tax relief

Our team recognises the importance of R&D in advancing UK businesses, big and small, and we understand the time burden, resources and complexities of claiming tax relief for that R&D. These constraints often leave companies failing to get the tax relief they’re entitled to or underclaiming significantly due to unclear, often confusing guidelines about what constitutes R&D. As experts in R&D tax relief, we’re here to unblur the lines and create robust, defensible and maximised claims on your behalf.

We’re experienced tax professionals, accountants and technical experts with a deep understanding of the R&D tax relief regulations. We’ve worked in many of the industries we now serve and are ideally placed to understand your business’ R&D Activities. As part of HMRC’s panel on R&D, we stay up-to-date with the latest developments in the guidance, to provide our clients with the most accurate and up-to-date advice.

At BC&A Innovation we take the burden of claim generation away from the business so you can do what you do best, while we do what we do best. We pride ourselves on our integrity, professionalism and commitment to our clients.

Not sure if you qualify for R&D tax relief? Book a FREE discovery call today.

Many of the businesses we work with were unsure if they qualified for R&D tax relief at first. A few had even been told by other agencies that they could not claim. Yet, with our help they were able to correctly identify eligible R&D projects and claim back vital funds.

As experts in HMRC’s definitions of Research & Development, we’ll be able to tell you if you should make a claim or not. We’re success fee based, which means it isn’t in our interest or yours to take forward claims that won’t pass HMRC’s stringent checks. If we say it’s worth doing, you can take that to the bank.

Ready for a discovery call? Think of it as a no-obligation chat where we can discuss the work you’ve undertaken and identify tax-saving opportunities. Our expert consultants are keen to speak with you.