Spring statement reveals some positive steps for the low carbon technology market
Rishi Sunak has announced that over the next five years, homeowners investing in low carbon technologies including solar panels, heat pumps or insulation will pay zero VAT (down from 5%).
BEAMA have for some time been requesting this from the Chancellor for this statement, and backed for years a move to ensure all key low carbon technologies associated with our move to Net Zero are zero VAT. We are pleased to hear from the chancellor today that our calls have been heard! But we are yet to see the details and know if this goes far enough. We have made specific requests for technologies such as MVHR and heating controls to be included as zero VAT measures given their essential contribution to reducing energy use and costs.
This is an important step for the UK to progress to Net Zero by 2050, but especially considering the current rise in energy costs investment in low carbon energy solutions will be able to make a big difference to many people’s energy costs.
Dr Howard Porter BEAMA CEO stated:
‘BEAMA welcomes the decision today to reduce the VAT level on all insulation measures and low carbon technologies. This will simplify the decision for consumers to invest in these measures that can reduce their energy costs by improving the energy efficiency of their home and generating and using zero carbon electricity. BEAMA will investigate the details as they emerge in particular whether these changes extend to the non-domestic building stock, and technologies such as smart EV charging, and when they are applicable.
This is an important change that we all need to get behind and grow the investment in these measures and technologies.’