Government Announces 0% VAT on Heat Pumps, Solar Panels & Other Energy-Saving Measures

Articles by Build It magazine
by Build It
23rd March 2022

BREAKING NEWS: In today’s Spring Statement, Rishi Sunak has announced a five-year VAT hiatus for homeowners installing energy-saving measures and eco devices such as heat pumps.

The move could reduce the cost of installing some renewable technologies by around £1,000 overnight – fantastic news for renovators and existing homeowners.

Details of exactly how the scheme will be implemented have yet to be unveiled. But the press is widely reporting that upgrades such retrofitting insulation are also likely to come under the 0% VAT scheme for greener homes.

The VAT cut comes at a time when homeowners are facing unprecedented rises in energy bills, and hot on the heels of the government’s Heat and Buildings Strategy and the launch of the Boiler Upgrade Scheme.

With installing eco upgrades set to become much more affordable, uptake is likely to grow at pace.

The government is now likely to come under increased pressure to fund installer training programmes to ensure the industry can cope with customer demand while delivering consistently high-quality installations.

Reaction to the VAT Cut for Energy Saving Measures

Richard Beresford, Chief Executive of the NFB:

“The NFB, along with many others in the industry, has repeatedly, over many years, called on the Treasury to remove the VAT on measures which improve energy efficiency. To us it always seemed like a ‘no-brainer’ to help incentivise the public to ‘green’ their homes and meet our country’s Net Zero ambitions and today we can finally welcome the decision the Chancellor has taken, it is long overdue but at last it is here.”


This article will be updated as more detail comes to light


Main image: NIBE ground source heat pump

Leave a Reply

You may be interested in

Our sponsors