Zero VAT on renewables announced in Spring Statement today
23rd March 2022
Chancellor Rishi Sunak announced today during the Spring Statement 2022 that the government is cutting VAT on installing energy saving materials from 5% to 0% from 1st April 2022 for five years.
Ian Rippin, chief executive officer at MCS, said:
“We welcome the move to zero VAT on home energy-saving measures, such as heat pumps and solar panels. This is a positive step to make green energy cheaper and more accessible to consumers. It will significantly bolster the government’s Boiler Upgrade Scheme (BUS) launching in May and will also help towards the overall efforts to decarbonise the UK housing stock.
“The move will also make solar PV even more accessible and will allow consumers to take advantage of the multiple benefits of solar, including reduced energy bills and enhancing the value of a property.
“This is also positive from an installer perspective, as it will simplify the procurement element of the installation process by removing the complex VAT rules. However, there is still the need for government and industry to work together to mitigate the current strain on the supply chain to allow installers to source the equipment to support uptake.”
Read more here.