VAT scrapped for insulation, solar panels and heat pumps in bid to curb bills

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy VAT will be scrapped for energy efficiency measures such as solar panels, heat pumps and insulation to tackle high energy bills, it has been announced. Chancellor Rishi Sunak said that homeowners having materials such as solar panels, electric heat pumps and insulation installed in the next five years would pay no VAT. “Insulating homes is the quickest way to help shield people from high gas prices and reduce our dependency on imported energy.” If the Chancellor’s serious about tackling the issue then it can only be the start Doug Parr, Greenpeace UK Dr Doug Parr, policy director at Greenpeace UK, said cutting VAT on insulation, solar panels and heat pumps was a “welcome start” to ending the huge waste of energy from leaky homes, helping keep bills down and cutting gas use. “We need to see around £10 billion of support, part raised by a windfall tax on oil and gas companies, for delivering the help families need to install the clean technologies that will get us off gas.” Jess Ralston, analyst at the Energy and Climate Intelligence Unit, said: “Removing VAT on energy efficiency products such as insulation is an immediate boost for families facing soaring gas bills.” “But there are lots more tools within the Chancellor’s grasp for getting off Russian gas and reducing household bills,” she said, such as low-interest loans and incentivising the switch away from gas boilers.