In March 2022, the Government proposed changes to VAT regulations for energy-saving materials in Great Britain, announcing plans to offer £280 million in tax incentives over a five-year span to enhance the energy efficiency of British homes.

Call for Evidence

A year later, after the 2023 Spring Budget, a Call for Evidence was issued, seeking input on optimising the effectiveness and accessibility of VAT relief for energy-saving materials.

The government sought opinions on the inclusion of Battery Storage systems under VAT relief and explored whether other technologies or installation costs should also be covered.

Among the 106 businesses and organisations responding to the Call for Evidence was Sunlite Group LTD, advocating for an extension of VAT relief. The foundation actively collaborated with The Treasury and HMRC to support the expansion of VAT relief.

Summary of Responses to the Call for Evidence

Recently, the Government released a comprehensive Summary of Responses to the Call for Evidence, available on the official government website. You can read more about it here.

VAT Removal

Effective from February 1st, 2024, VAT will be eliminated from the mentioned technologies. This policy applies throughout Great Britain until March 31, 2027, when the VAT rate will revert to 5%, subject to future government decisions.

The removal of VAT from these technologies and associated work is expected to significantly reduce installation costs, potentially fostering greater adoption of renewable energy and heating technology in the UK.

This accessibility may empower more consumers to afford and embrace low-carbon systems.

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Government feedback

In light of the feedback received, the Government will broaden VAT relief to encompass the following renewable technologies and associated activities:

  • Battery Storage systems retrofitted onto existing Solar PV installations
  • Water-Source Heat Pumps
  • Groundworks related to the installation of Ground-Source Heat Pumps

Government VAT Reduction

At Sunlite Group we provide solar battery storage installation, enabling you to store the excess energy produced by solar PV. As a result, you have access to power around the clock, even without daylight.

Take advantage of the governments VAT reduction and start saving money with Sunlite now. Explore our Solar Battery Storage solutions here.

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