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The Government published a Summary of Responses to the Call for Evidence, which can be read on the Government website in full.
In response to the findings from the Call for Evidence, the Government will now be expanding VAT relief to bring the following renewable technologies and related works in scope:
Battery Storage systems retrofitted on to existing Solar PV installations
Water-Source Heat Pumps
Groundworks related to the installation of Ground-Source Heat Pumps
VAT will be removed from all of the above on 1st February 2024. This policy applies across Great Britain until 31st March 2027, when the VAT amount will revert to 5% (subject to further decisions by the Government at the time).
The removal of VAT from these technologies and the associated work will significantly reduce the cost of installation and hopefully have a positive impact on uptake of renewable energy and heating technology in the UK as more consumers are able to afford and access low-carbon systems.