Changes to Energy Saving Materials installation VAT

From April 2022, installation of certain Energy Saving Materials will have zero-rated VAT applied for a limited period.

The changes will apply to residential accommodation installation energy saving materials including exclusively solar panels, heat pumps and insulation installations. It is set to remain in place until 31 March 2027.

Such changes could see tax savings of solar panel installations worth around £1,000 to homeowners.

Alongside the planned reduction in VAT, wind and water turbines will also be eligible for zero-rated VAT savings.

The changes to VAT rating coincide with the launch of the Boiler Upgrade Scheme providing consumers the opportunity to secure a grant to aid the purchase of alternative heat pumps or boilers. As an incentive to convert to low-carbon heating systems, the scheme is part of aims to have all new heating systems installed in UK homes by 2035.

Grants will be available for the next three years and offer £5,000 for air source heat pumps and biomass boilers, or £6,000 for ground source heat pumps.

Severn Valley Renewables are committed to bringing you the best possible renewable energy products. Our dedicated experts can support from sourcing the best products to bring more energy savings solutions for your home, to installation and servicing.

If you are interested in renewable energy as an alternative to your current energy sources or would like to talk to a professional, get in touch today and we can discuss the best option for you and your property.