NI homeowners investing in renewables and energy saving measures could save thousands thanks to a new zero VAT rate taking effect this April.
Energy saving materials will no longer be applied value added tax in NI, thanks to measures introduced in Chancellor Rishi Sunak’s Spring Statement.
According to the UK government, the introduction of zero VAT on energy saving materials, or ESMs, will mean a typical family having rooftop solar panels installed will save more than £1,000 in total on installation, and then £300 annually on their energy bills.
The government is reversing a Court of Justice of the European Union ruling that restricted the application of VAT relief on the installation of ESMs. Wind and water turbines will be added to the list of ESMs and complex eligibility conditions removed.
The Northern Ireland Executive will receive a Barnett share of the value of this relief until it can be introduced UK wide.
The Federation of Master Builders welcomed the move, saying it would boost the drive for greener and more energy efficient homes.
“Historically, consumers have not been properly incentivised to commission green upgrades to their homes,” said Brian Berry, Chief Executive of the FMB.
“This VAT cut will help householders insulate their home at a time when energy bills are escalating. It will also provide a much-needed boost to local builders operating in the retrofit market. The Government now needs to build on the VAT cut and implement a long term National Retrofit Strategy to provide business certainty.”
