Working file G4

0% VAT on energy-saving materials (to 31 March 2027)

Name: 0% VAT on energy-saving materials (to 31 March 2027)
Creator: Digital Signet
Published: 2026-06-22
License: https://creativecommons.org/licenses/by/4.0/

0% VAT on energy-saving materials (to 31 March 2027): amount, eligibility, sunset and stacking with the other live grants.

What qualifies

HMRC VAT Notice 708/6 lists qualifying materials including ASHPs, GSHPs, solar PV, solar thermal, insulation, controls, and (since 2024) standalone battery storage. Labour and materials in a single installer invoice are zero-rated for installation in or near a domestic dwelling.

Sunset

Zero rate runs to 31 March 2027; the rate reverts to 5% after that date in the current legislation.

Surveyed 1 October 2026. Ofgem cap for 1 October to 31 December 2026 applied (gas 7.97p, elec 26.32p, gas standing 29.68p, elec standing 54.83p). Next scheduled review 25 November 2026 (January cap announcement). [ref G4]

By Oliver Wakefield-Smith, Founder, Digital Signet. Corrections to oliver at digitalsignet dot com.