0% VAT on Energy Saving Materials
To encourage the adoption of energy-efficient technologies, the UK government has reduced the VAT rate on the installation of certain energy-saving materials in residential properties to 0% across the United Kingdom.
How long does it last?
The 0% VAT rate is currently in effect and is scheduled to remain in place until 31 March 2027. After this date, it is expected to return to the reduced rate of 5%.
What measures are covered?
The 0% rate applies to the installation of:
- Insulation (walls, floors, lofts, etc.)
- Solar panels (PV and thermal)
- Air source and ground source heat pumps
- Micro-CHP (Combined Heat and Power)
- Wood-fuelled appliances
- Smart heating controls (when installed alongside other measures)
- Water source heat pumps
How to benefit
You do not need to apply for this tax reduction.
- Request a quote from an installer for one of the eligible measures.
- The installer should automatically apply the 0% VAT rate to the quote and final invoice.
- This applies to both the cost of the materials and the labour for the installation.
Note: The 0% rate only applies when the materials are supplied and installed by the same professional. Buying materials yourself for a DIY project will still usually attract the standard 20% VAT rate.