VAT on energy efficiency measures are to be cut to 0%, Chancellor Rishi Sunak has announced as part of his Spring Statement.
Speaking in the House of Commons this afternoon (23 March), the Chancellor unveiled his mini-budget amidst the energy and cost of living crisis.
The cut to VAT on solar panels, heating pumps and roof insulation from 5% to zero for five years will help families become more energy efficient, Sunak said. Due to the cut, a household installing solar panels on their homes will see £1,000 in savings, and then £300 on energy bills annually.
It follows calls for VAT reductions from charities, companies and trade associations, including Solar Energy UK, which has been a vocal supporter of the change.
“Removing VAT on energy efficiency products such as insulation is an immediate boost for families facing soaring gas bills. But there are lots more tools within the Chancellor’s grasp for getting off Russian gas and reducing household bills,” said Jess Ralston, analyst at the Energy and Climate Intelligence Unit.
It’s Time to Go Green!
If you would like to know more about Solar Panels and the PowerBanx range of home battery systems, and get a free instant quote, please complete our online form:
