EU calls for VAT increase on energy efficiency products

 The UK's low rates of VAT on energy efficiency products could be forced to increase as it is in breach of EU laws. This means rather than the 5% on all current energy efficiency items listed below you could soon be charged 20% VAT instead.

Energy Products:

Controls for central heating and hot water systems
Solar panels
Wind turbines
Water turbines
Ground-source heat pumps
Air-source heat pumps
Micro combined heat and power units
Wood-fuelled boilers

This has caused ripples within the government as MPs voice their frustration. Ashley Fox, leader of the UK Conservatives in the European Parliament said the ruling "defies common sense" because the EU's law would shy away more homeowners considering renewable energy which will make it harder for the UK to reach their legally binding targets for reducing carbon emissions.

A standard 4kWp Solar PV system which may cost around £6,000-£8,000 with the current 5% you would usually pay around £300 of VAT, whereas at the EU's 20% you would be paying as much as £1,200 extra! The EU's ruling will not take effect immediately, so we are urging homeowners to get quotes from installers now without the back breaking 20% on top. Otherwise you will be robbing yourself of a potentially greater return on investment.  More...