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Chancellor announces VAT cut for small-scale renewables

Posted: 24 March, 2022. Written by Virginia Graham

In his Spring Statement yesterday Chancellor Rishi Sunak announced that there would be 0% VAT on small scale renewables and energy efficiency measures as well as their installation from April 2022.

The Chancellor announced that the scope of VAT relief would be expanded: VAT on 'Energy Saving Materials' is currently 20% unless some specific social criteria have been met.

This announcement is the culmination of an extensive campaign by our parent company, REA, and others over the last two years.

The list of 'Energy Saving Materials' which currently covers solar panels, insulation measures, heat pumps and biomass boilers, will be expanded to cover wind and water turbines. Further Treasury guidance will clarify whether battery storage systems and other add-ons will also be included in the definition.

You can find more information below.

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