Chancellor Rishi Sunak has said today that homeowners will pay 0% VAT on energy saving materials, such as solar panels or heat pumps, for the next five years.
The news comes as part of the Spring Statement, and applies to the installation of the following energy saving materials:
- Solar panels
- Ground source heat pumps
- Air source heat pumps
- Insulation
- Controls for central heating and hot water systems
- Draught stripping
- Micro combined heat and power units
- Wood-fuelled boilers
Energy saving materials are currently on a reduced VAT rate of 5%, which will now be brought down to 0%.
By removing the VAT, the government could help incentivise Brits to buy low-carbon tech, which will not only reduce energy bills, but also shrink household carbon emissions.