How Much Will the VAT Cut on Energy-Efficient Improvements Save Homeowners?

How Much Will the VAT Cut on Energy-Efficient Improvements Save Homeowners
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Certain energy-saving home improvements will now be zero-rated for VAT, and while this initially looks like a boost in the right direction, do the benefits actually stack up? And what is really in it for homeowners? 

Chancellor Rishi Sunak confirmed the move in the Spring Statement last month, whereby homeowners will now pay 0% VAT for eligible Energy Saving Materials (ESMs) such as air source heat pumps, insulation and solar panels.

David Hilton

David is a renewables and ventilation installer, with over 35 years experience, and is a long-standing contributor to Homebuilding and Renovating magazine. He is a member of the Gas Safe Register, has a Masters degree in Sustainable Architecture, and is an authority in sustainable building and energy efficiency, with extensive knowledge in building fabrics, heat recovery ventilation, renewables, and also conventional heating systems. He is also a speaker at the Homebuilding & Renovating Show. 

Passionate about healthy, efficient homes, he is director of Heat and Energy Ltd. He works with architects, builders, self builders and renovators, and designs and project manages the installation of ventilation and heating systems to achieve the most energy efficient and cost effective outcome for every home.