This week chancellor Rishi Sunak announced cutting VAT to zero upon installing energy efficient systems such as solar panels, heat pumps and insulation, but what does this mean for the price of an install?
Although installers will still pay VAT on the materials they fit, the VAT on the installation will be reduced to zero, meaning the price of an average installation will be around £1,000 cheaper, which is a big deal. This reduction is currently planned to last for the next 5 years and applies to batteries as well as solar panels, so will make a significant impact on the cost of going green and reducing electricity bills. Mr Sunak went on to say “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.” however with a battery installed we believe the average household will save at least £500 per year and potentially much more.
This is great news for anyone considering using solar PV to reduce their bills, it’s a good way to reduce our dependence on fossil fuels and a good thing for the environment, so we say bravo Rishi!