No Vat On Heat Pumps
June 2, 2022
The UK’s attempts to introduce green energy into households across the UK are just the beginning of a green and clean future. Hopefully, these changes will encourage individuals to make energy-efficient choices for their homes. Heat pumps use less energy than conventional heating systems, and so many customers are getting in on the action! In light of the dire situation regarding the market on energy, the best course of action is to invest in renewable energy that is both clean and free from fluctuations in the marketplace. Furthermore, removing the current tax on this kind of power may cause less strain on peoples’ wallets and end up being more environmentally conscious. At Finbra, we supply both air source and ground source heat pumps, so get in touch with us today to find out more about our services and if it’s the right switch for you!
Why The Introduction Of Reduced VAT?
This reduction of VAT is the new replacement for the previous 20% rate. With this new reduction, the incentive to purchase an air conditioner or air source heat pump will be greater, to improve air quality and reduce fuel costs. This is caused by the government wanting to lower domestic contributions to carbon emissions, and, by extension, reduce the current energy crisis.
When Was This Introduced?
With more exciting news for the heat pump industry, the Chancellor just announced in his Spring Statement that VAT will be going to be zero-rated on heat pumps starting on April 1, 2022. With this change, customers are typically going to save between £500 and £750 on their installation. This will also be for the next five years!
Why Invest In Heat Pumps Now?
Now, more than ever, there are excellent reasons to make the switch to heat pumps, here are 4 reasons why you should:
- Invest in an alternate energy source to shield yourself from the rising costs of fossil fuels. As more electricity comes from renewable sources, thus electricity will continue to get less expensive. Like oil and coal, dirty fuels such as gasoline will be highly taxed, which will make them increasingly costly.
- Make use of the zero-rated VAT, saving you money on installation costs.
- It saves the environment by emitting less carbon, the amount from renewables coming from solar, wind, and nuclear. No amount of gas and oil will ever make the world a cleaner place.
- While energy prices are generally on the rise, gas prices are growing at a much faster rate than electric prices. When used for heating, a heat pump will generate significant running cost savings compared with a fossil fuel heater.
VAT on heat pumps will be lowered to 0% from April 2022 until 2027. Now is the time to invest in green home improvements to combat the perpetually rising energy bills. As per the UK’s recent moves, it is important to build homes that create more homegrown energy if we are to meet the Net Zero Goals.
Our Air Source Heat Pump Services
At Finbra, our air source heat pumps are very easy to install, and one of our experienced installers is happy to help you with the installation process.
With 0% VAT, heat pumps are more affordable than ever before, so take advantage of these renewables and save money in the long haul. Contact us today and we will help you get started.