ZERO VAT on Energy Saving Materials
Friday, 8 April 2022
With the current global situation around energy prices, we would say this is a great opportunity
to invest in clean renewable energy, and starting with solar would be a great place to start.The government recently announced they will be scrapping VAT on home insulation, solar panels, and heat pumps in a bid to drive down bills
Beginning in April this year the 0% VAT covers home insulation, solar panels, and heat pumps. This cut will last for five years.
Sunak said: "As energy costs rise, we know that energy efficiency will make a big difference to bills. But if homeowners want to install energy-saving materials, at the moment only some items qualify for a five per cent VAT relief and there are complex rules about who is eligible.
“The relief used to be more generous but from 2019 the European Court of Justice required us to restrict its eligibility. But thanks to Brexit we're no longer constrained by EU law so I can announce that for the next five years homeowners having materials like heat pumps, solar panels or insulation installed will no longer pay five per cent VAT they will pay zero.”
"A family having a solar panel installed will see tax savings of over £1,000 and savings on their energy bill of over £300 per year."
Sunak said: "As energy costs rise, we know that energy efficiency will make a big difference to bills. But if homeowners want to install energy-saving materials, at the moment only some items qualify for a five per cent VAT relief and there are complex rules about who is eligible.
“The relief used to be more generous but from 2019 the European Court of Justice required us to restrict its eligibility. But thanks to Brexit we're no longer constrained by EU law so I can announce that for the next five years homeowners having materials like heat pumps, solar panels or insulation installed will no longer pay five per cent VAT they will pay zero.”
"A family having a solar panel installed will see tax savings of over £1,000 and savings on their energy bill of over £300 per year."