NO VAT ON RENEWABLE ENERGY INSTALLATIONS FOR 5 YEARS!
The Chancellor announced in the Spring Budget that the VAT rate applicable to the installation of energy saving materials and technologies will be reduced to 0%, from 1st April 2022 until 31st March 2027. After five years the VAT free period will end and the rate will then revert back to 5%
Chancellor Rishi Sunak announced cutting VAT from five percent to zero upon installing energy efficient systems such as solar panels, heat pumps and insulation.
According to him, “A family having a solar panel installed will see tax savings worth over £1,000 and savings on their energy bill of over £300 per year."
So why is now the right time for people to invest in renewable energy?
With the current global situation around energy prices, it is without a doubt that this is the best time to invest in clean renewable energy that will, in the future, protect homes from the inevitable price rises.
This also will protect the earth from the harm of global warming.
The VAT on renewables was 5%, which was already low, but scrapping that off will potentially save people from paying excessively on their energy bills.
The UK's initiatives to push green energy into private households is just the beginning of a green and clean future, and we can only hope that this incentivises people to make energy efficient choices for their homes.
At Harris Energy we can create a tailor made plan to ensure your renewable options are suitable for your home.
Our aim is to simplify renewable energy for our customers so we will be able to quote for you and work out all the VAT liabilities and send across a no obligation quote