The exemption for heat pumps, solar panels and batteries is due to end on 1 April. Industry groups warn that the deadline could bring a rush for installations followed by a downturn.
The UK government plans to end the VAT exemption for home heat pump, solar panel and battery installations from 1 April, restoring a 5% rate. The change would add tax to work that is currently exempt.
Industry groups warn that households could rush to book installations before the deadline, followed by a drop in demand for installers. The Guardian said on 9 November that demand for home energy upgrades had reached record highs after gas market prices doubled across Europe during the Middle East war.
The Liberal Democrats estimate that the change could add £1,530 (about $2,000) to the cost of installing an air-source heat pump, a 4KW solar installation and a home battery if the work is not done before April. An air-source heat pump draws heat from outside air to warm a home.
Heat Pump Association UK is seeking government clarification on how the tax will apply if an installation booked before the deadline is delayed. The association’s chief executive, Charlotte Lee, warned that a rush of applications could disrupt the supply chain and make the process less predictable for customers.
A spokesperson for the Department for Energy Security and Net Zero said the government was protecting support for low-income families and launching warm homes loans to let households buy heat pumps, solar panels and batteries without upfront costs. The association is awaiting clarification on delayed bookings.
NVIDIA announced an investment in the interconnect developer Point2 and plans separate investments in Motif Technologies, RLWRLD and Upstage.
2 min
The coffee chain says recruitment will focus on the Midlands, northern England, Wales and Scotland as it targets growth north of London’s M25 ring road.
1 min
The competition regulator also fined Baemin operator Woowa Brothers 331.1 billion won for similar practices. Coupang plans a legal challenge.
2 min
