Zero Carbon = Zero VAT

Loft insulation

In 2022, following a campaign by The MCS Foundation and partners, the Government introduced zero-rated VAT on domestic energy efficiency products and associated works. This has helped boost renewables installations by reducing the costs for households, meaning more people can benefit from cleaner energy, warmer homes, and lower bills. 

The zero-rated VAT is currently in place until March 2027. We need HM Treasury to confirm that this policy will be extended until at least 2030, to avoid an up to 20% jump in the cost of renewables like battery storage, solar PV and heat pumps, and other energy efficiency measures like insulation.  

Maintaining the zero-rated VAT is essential to continue to support the renewables industry.  It has had a significant benefit on reducing prices for heat pump installations and is directly supporting the Government’s own plans in decarbonising homes.    

Email your MP and ask them to write to the HM Treasury to support the continuation of this successful and important policy. 

Zero VAT campaign aims

VAT on battery storage installed with solar PV

0%

VAT on ground-source heat pump works

0%

Propsed extension date of zero VAT scheme

2030