As the government looks to reduce carbon emissions and meet its climate change targets, it has announced VAT cuts on a range of energy-saving materials.
The hope is that by making these products more affordable, more people will be encouraged to install them in their properties, which will help reduce energy consumption and ultimately help lower carbon emissions.
These new VAT rates came into place on the 1st of April 2022 and are due to stay in place until the 31st of March 2027.
What is the Zero rate?
The zero rate is a temporary VAT cut on installations of qualifying energy-saving materials, which reduces VAT to zero. The zero rate applies to the installation of the following energy-saving materials:
- Controls for central heating and hot water systems
- Draught stripping
- Solar panels
- Ground source heat pumps
- Air source heat pumps
- Micro combined heat and power units
- Wood-fuelled boilers
- Wind turbines
- Water turbines
It is important to note that the reduced rate only applies to installations carried out on domestic properties. If you want to have work done on a commercial property, you will not be eligible for the VAT reduction. For more details on what is covered, take a look at here.
Heat pumps are a great renewable heating option, and with the VAT cut, they have become an even more attractive option for those looking to reduce their energy consumption.
Using a renewable source and a heat pump could lower your heating expenses by up to 65%. The exact amount will vary based on where you live, the size of your property, and the fuel you are replacing. Because there is no combustion process involved with heat pumps, you will also be doing your bit to help the environment.
Why go green?
There are many reasons why you should switch to renewable energy. Renewable energy is a sustainable and clean source of power that does not produce harmful emissions. Not only is it better for the environment, but it can also save you money in the long run. With renewable energy becoming increasingly affordable as technology improves and more people invest in it, there’s never been a better time to make that investment in your home.
Making the switch to renewable heating
If you’re thinking of making energy-saving improvements to your property, these VAT cuts could make them more affordable. So it’s worth considering whether they could help you save money and reduce your carbon footprint.
At Lewington Heating, we’ve been installing renewable energy heating systems since we first launched our Lewington Renewable division in 2000. Our primary focus is installing air and ground source heat pumps (for which we won a Worcester Bosch Environment 2020 award).
Discover all of the renewable heating solutions we offer here at Lewington.