In another great boost for the heat pump industry, the Chancellor announced in his Spring Statement that VAT was going to be zero-rated on heat pumps from 1st April 2022. This change will typically save customers between £500 - £750 on their installation.
Zero Rated VAT on Energy Saving Materials.
From 1st April 2022 for a period of five years, the installation of certain energy saving materials - including heat pumps - will attract zero-rate VAT. This change represents both an improvement of the current reduced rate of 5%, but also a significant simplification of the VAT rules to energy saving measures.
This is great news for homeowners looking to install a heat pump, as it adds yet another reason to the ever growing list of reasons to invest in heat pump technology right now.
WHY INVEST IN HEAT PUMPS WITH AD ENVIRONMENTAL?
There are currently so many reasons to make the switch to heat pumps:
1. Energy prices. Whilst all energy prices are increasing, gas is increasing much faster than electricity. Heat pumps will generate significant running cost savings compared with their fossil fuel alternatives.
2. Shield yourself from ever increasing fossil fuel prices. As more electricity comes from wind and solar, thus electricity will continue to get relatively cheaper. Likewise gas and oil and other dirty fuels will be more heavily taxed, making them ever more expensive.
3. Claim the £5,000 Boiler Upgrade Scheme grant whilst it’s available. Read more here.
4. Benefit from the zero-rated VAT, saving you a further £500 - £750 on the cost of your installation.
5. Save carbon and do you bit for Planet Earth. Electricity becomes ever-greener, with bigger contributions coming from solar, wind and nuclear. Gas and oil will never get cleaner.