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Rishi Sunak today announced that VAT on energy-saving devices for the home will be cut to zero. This change, revealed in the chancellor’s spring statement, will reduce the cost of installing solar panels.
It will also make it cheaper to install other energy-efficient measures such as insulation and heat pumps. Sunak laid out his plans today in a mini-budget amid rising energy, food, and fuel costs.
Image credit: Getty images / Leoniek Van Der Vliet / EyeEm
Rishi Sunak slashes VAT on eco-home improvements
‘As energy costs rise, we know that energy efficiency will make a big difference to bills,’ Rishi Sunak told MPs today. ‘I can announce for the next five years, homeowners having materials like solar panels, heat pumps, or insulation installed will no longer pay 5% VAT– they will pay zero.’
The cost of living crisis has left many looking for ways to save energy at home. Improving our home’s ability to retain heat with insulation is one way to reduce bills.