Reduced VAT on Renewable Energy Equipment

Reducing the cost of going green

Professionally installed renewable technologies available from James Hargreaves Renewables are eligible for a for a reduced VAT rate of 5%.

By installing certain energy saving materials and equipment in your home you’ll pay a reduced rate of VAT, and no VAT at all if this equipment is installed in a new build property.

Installers and building contractors should also charge a lower rate when installing renewable and sustainable energy equipment.

Only the installation of certain products qualify for the scheme, but the range could be widened if the work is to be funded by a grant, so it’s worth seeing what’s available to you and how it could help.

What qualifies for lower rates of VAT?

• controls for central heating and hot water systems
• draught insulation (eg around windows and doors)
• insulation on walls, floors, ceilings, lofts, etc
• solar panels
• wind turbines
• water turbines
• ground-source heat pumps
• air-source heat pumps
• micro combined heat and power units
• wood-fuelled boilers

This lower rate of VAT is available on the cost of installing the equipment listed above and on any necessary building work that is required through installation.

If you receive a grant towards the installation of energy saving equipment in your home you’ll pay a lower level of VAT on any installation or building work done as a result of installation.

If you are 60 or older you’ll get the lower rate on the installation, maintenance or repair of a central heating system or renewable source heating system.

If you get one of the following benefits, you’ll get the lower rate on the installation of heating appliances such as specific types of immersion heaters, boilers, storage heaters, gas heaters and radiators:

• child tax credit – other than the family element
• council tax benefit
• disability living allowance
• disablement pension
• housing benefit
• income-based job seeker’s allowance
• income support
• war disablement pension
• working tax credit

For full information and to see which products are available at a reduced rate of VAT go to the energy saving section of the HMRC website.

Many of the renewable energy solutions supplied by James Hargreaves are eligible for reduced VAT. Go to our product pages to see the full range of equipment we supply.

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