Government urged to cut VAT on domestic renewables

REA says installations of zero-carbon systems are still too expensive for many

Big Zero Report 2022

The Association for Renewable Energy and Clean Technology (REA) has urged the government to remove VAT rates on domestic renewable energy and clean technologies.

Currently, these systems are subject to 20% VAT, following a European Union ruling that imposed it on the installation of home energy saving materials.

Two years after Brexit the UK is free to implement the measure, the trade body said.

It added that the move would protect households from volatile energy prices, deliver new jobs and support the transition to net zero.

Dr Nina Skorupska CBE, Chief Executive of the REA, said: “The government can protect UK households from soaring energy bills by giving them the ability to install renewable energy and clean technology systems in their own homes.

“However, the aspiration to install domestic zero-carbon energy systems remains out of reach for many due to prohibitive costs.”

ELN has contacted BEIS for a response.

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