0% VAT on Energy Efficiency Products: Full List of What Qualifies

0% VAT energy efficiency products can save UK homeowners hundreds or even thousands of pounds on home improvements. Qualifying energy-saving materials installed in homes have been zero-rated for VAT since 1 April 2022 in England, Scotland and Wales, and since 1 May 2023 in Northern Ireland, down from the previous 5% reduced rate. The relief runs until 31 March 2027. From 1 April 2027 the rate is due to go back to 5%, not 20% (HMRC VAT Notice 708/6, checked September 2026). It covers heat pumps, insulation, solar panels, batteries and draught stripping, but not EV chargers, glazing or gas boilers. Here is the complete list of what qualifies.

Which Energy Efficiency Products Qualify for 0% VAT?

Since April 2022 (May 2023 in Northern Ireland), the UK government has applied 0% VAT to the supply and installation of qualifying energy-saving materials in homes and, since February 2024, in buildings used by charities. The relief runs until 31 March 2027 and covers both materials and labour when a VAT-registered installer supplies and fits them. These are the items on HMRC’s list:

• Insulation for walls (cavity, internal and external), floors, lofts, roofs and ceilings, plus hot water tanks and pipes
• Draught stripping for windows, doors and loft hatches
• Controls for central heating and hot water: timers, programmers, thermostats and thermostatic radiator valves
• Solar panels: photovoltaic (PV) and solar thermal
• Air source heat pumps that are permanently fixed, including air-to-air units
• Ground source heat pumps, plus (since 1 February 2024) the groundworks to lay their pipework
• Water source heat pumps (since 1 February 2024), including dredging to lay the pipework
• Home batteries (since 1 February 2024), whether fitted with solar panels, added to an existing system or charged only from the grid
• Smart diverters that send surplus solar or turbine power to your appliances (since 1 February 2024)
• Wind turbines and water turbines
• Micro combined heat and power units
• Wood-fuelled (biomass) boilers, but not multi-fuel boilers or stand-alone wood-burning stoves

The 0% VAT rate applies to installations in homes, charity buildings and armed forces accommodation. On an £8,000 solar installation it saves £400 compared with the 5% rate due to return on 1 April 2027. EV chargers, double and triple glazing, gas and oil boilers, infrared panels and conservatory roofs are not on the list, so they carry 20% VAT (a grant-funded boiler or storage heater in the main home of someone aged 60 or over, or on certain benefits, can be charged at 5%).

What each qualifying product covers

The 0% VAT rate applies to the supply and installation of the following energy-saving materials in qualifying residential properties. Both the materials and the labour for installation are zero-rated when supplied together by a VAT-registered installer.

Heating Systems

• Air source heat pumps: including air-to-water and fixed air-to-air systems (portable units don’t count). Our modelled typical cost is £10,684 for a three-bedroom house (heat pump costs), so 0% VAT saves about £534 against the 5% rate due back in April 2027
• Ground source heat pumps: including borehole and horizontal loop systems. Since 1 February 2024 the groundworks to lay the pipework are zero-rated too
• Water source heat pumps: on the list since 1 February 2024, including dredging a body of water to lay the pipework
• Wood-fuelled (biomass) boilers: boilers designed to burn only wood, pellets, straw or similar plant matter. Multi-fuel boilers and stand-alone wood-burning stoves are standard-rated

Conventional gas and oil boilers do not qualify for 0% VAT. They remain subject to the standard 20% VAT rate on installation labour and materials.

Solar and Renewable Generation

• Solar photovoltaic (PV) panels: all residential installations qualify, including the cabling, inverter and control panel. Our modelled typical cost is £6,320 for 10 to 12 panels, so the zero rate saves about £316 against 5%
• Solar thermal panels: collectors that heat your water, with their pipework, pump and cylinder
• Battery storage: since 1 February 2024 every home battery qualifies, whether it’s fitted with solar panels, added to an existing system, or a standalone battery charged from the grid on a cheap overnight tariff. At our modelled typical cost of £5,200, that saves £260 against 5%
• Smart diverters: devices that send surplus solar or turbine power to your immersion heater or other appliances (since 1 February 2024)
• Wind and water turbines: small-scale domestic generation, including battery banks and controllers
• Micro combined heat and power (CHP): units that generate both electricity and heat for the home

Insulation Products

• Loft insulation: mineral wool, cellulose fibre, sheep’s wool and all other loft insulation materials
• Cavity wall insulation: blown bead, foam and mineral fibre cavity fill
• Solid wall insulation: both internal and external wall insulation systems
• Floor insulation: rigid board and spray foam underfloor insulation
• Roof insulation: flat roof and pitched roof insulation systems
• Hot water cylinder insulation: jackets and spray foam for hot water tanks
• Pipe insulation: lagging for hot water and central heating pipes

All types of insulation qualify, regardless of the material used, provided it is installed in a residential property.

Draught Proofing and Ventilation

• Draught stripping: strips fixed around windows, internal and external doors and loft hatches to cut draughts
• Mechanical ventilation with heat recovery (MVHR): not on HMRC’s list of energy-saving materials, so expect 20% VAT on it

Heating Controls

• Thermostatic radiator valves (TRVs): individual room temperature control valves fitted to radiators
• Programmers and timers: heating system timing controls
• Room thermostats: including smart thermostats
• Hot water tank thermostats: temperature control for hot water cylinders
• Boiler interlocks and optimisers: controls that improve heating system efficiency
• The exception: controls fitted as part of a whole new central heating system with a gas or oil boiler form one standard-rated job at 20%. Fitted on their own, or with a heat pump, they’re zero-rated

Glazing and Doors

Double, triple and secondary glazing and low-emissivity glass are standard-rated at 20%, whether you buy them on their own or alongside qualifying work such as insulation. HMRC lists them as “other energy-efficient products” that don’t get the relief. Double glazing can still be worth doing, but budget for the full VAT. Replacement doors aren’t on the list either.

What Does NOT Qualify for 0% VAT

Several common home improvement products are excluded from the relief:

• EV chargers: not an energy-saving material, so home charge points carry 20% VAT
• Gas and oil boilers: 20% VAT, or 5% where a grant pays for the installation in the main home of someone aged 60 or over or on certain benefits
• Double, triple and secondary glazing: 20% VAT, even as part of a wider project
• Electric radiators, storage heaters and infrared heating panels: none is on the list, so 20% VAT applies (a grant-funded storage heater for a qualifying person can be 5%)
• Heat batteries (thermal stores): the zero rate covers electrical storage batteries only, so a heat battery fitted on its own isn’t covered
• MVHR and other ventilation: not on the list
• Conservatory roofs and general building work: extending or renovating a property, or replacing a conservatory roof, is standard-rated even if insulation is included
• DIY purchases: the 0% rate applies when an installer fits the product. If you buy materials from a DIY store and install them yourself, you pay 20% on the purchase
• Hotels, hospitals and commercial properties: the relief covers homes (including self-catering holiday lets, park homes and residential houseboats) and charity buildings only

How Much Can You Save with 0% VAT?

The saving is the VAT you would pay at 5%, the rate due back on 1 April 2027, so it’s simply 5% of the price. Here are examples using our modelled typical costs, which already include 0% VAT:

Put a heat pump, solar panels and loft and cavity insulation together at those typical prices (£19,954 in all) and 0% VAT saves about £998 against the 5% rate. That’s worth having, but it’s not a reason to rush a job you haven’t planned.

Which Properties Qualify?

The 0% VAT rate applies to installations in:

• Owner-occupied homes: houses, flats, bungalows and maisonettes
• Privately rented properties: where the landlord pays for the installation
• Social housing: council and housing association properties
• Second homes: holiday homes and second properties qualify, though the property must be residential
• New-build properties: though new builds are already zero-rated for VAT on the construction itself

Before April 2022 the 5% rate only applied if the customer met one of HMRC’s social policy conditions or the materials made up no more than 60% of the price; otherwise the job carried 20%. The zero rate has no such test: the full cost of both materials and installation labour is zero-rated.

What Happens When the 0% VAT Relief Expires?

The current 0% VAT rate is legislated to remain in place until 31 March 2027. After that date, the rate is currently scheduled to revert to 5% (the reduced rate that applied before April 2022), not the standard 20% rate.

That is still HMRC’s position in its notice as checked in September 2026. The government could extend the zero rate, but don’t plan a project around that.

If you’re planning qualifying work anyway, aim to have it installed before 1 April 2027. The rate is set by when the supply takes place for VAT purposes, not when you place the order, so if a job will finish close to the deadline, ask your installer how they’ll invoice it. On most jobs the difference is 5% of the price, so don’t let the deadline rush you into a poor quote.

To price a project before the deadline, request a free quote: up to three approved installers who cover your area may contact you. No charge, no obligation.

How to Ensure Your Installer Applies 0% VAT Correctly

To receive the 0% VAT rate, certain conditions must be met:

• The installer must be VAT-registered. If your installer is not VAT-registered (turnover below £90,000), they do not charge VAT at all, so the rate is irrelevant
• Materials and installation must be supplied together. The 0% rate applies when the installer supplies and fits the product. It does not apply to materials purchased separately
• The property must be residential. Commercial installations do not qualify
• The invoice must show 0% VAT on the qualifying items. Check your invoice to ensure the correct rate has been applied

If your installer charges you 5% or 20% VAT on qualifying products, query it immediately. They should either correct the invoice or explain why the 0% rate does not apply to your specific situation.

Combining 0% VAT with Government Grants

The 0% VAT relief stacks with all government grant schemes. This means:

• A heat pump costing £12,000 in England or Wales qualifies for a £7,500 Boiler Upgrade Scheme grant, leaving you to pay £4,500 with no VAT on top
• Insulation funded by the Warm Homes: Local Grant, or by ECO4 until that scheme ends on 31 December 2026 (Ofgem), may cost you nothing; if you do contribute, your share is zero-rated too
• Solar panels and batteries you pay for yourself get 0% VAT on the full amount, and in Great Britain you can also earn Smart Export Guarantee payments for surplus electricity (the SEG doesn’t apply in Northern Ireland)

Frequently Asked Questions About 0% VAT on Energy Efficiency

Does 0% VAT apply if I buy insulation from a DIY store and fit it myself?

No. The 0% VAT rate only applies when the materials and installation are supplied together by the same installer. If you buy materials separately from a retailer, you pay the standard 20% VAT on the purchase price. The DIY route may still be cheaper overall for simple jobs like loft insulation, but you lose the VAT benefit.

Are electric storage heaters and infrared panels covered by 0% VAT?

No. Neither is on HMRC’s list of energy-saving materials, so both carry 20% VAT. The one exception is a grant-funded storage heater installed in the main home of someone aged 60 or over or on certain benefits, which can be charged at 5%. If an installer quotes 0% VAT on infrared heating panels, ask which item on HMRC’s list they’re relying on.

Can I claim back VAT I already paid on qualifying products before April 2022?

No. The zero rate only applies to installations from 1 April 2022 in England, Scotland and Wales, and from 1 May 2023 in Northern Ireland. You can’t claim a refund for VAT paid on earlier installations. Before then, most energy-saving materials were charged at 5%, or 20% where the job didn’t meet HMRC’s social policy or 60% materials conditions. Batteries, water source heat pumps and smart diverters were only added to the list on 1 February 2024.

Does the 0% VAT rate apply to battery storage installed without solar panels?

Yes. Since 1 February 2024, battery storage systems qualify for 0% VAT whether installed alongside solar panels or retrofitted to an existing system. A standalone battery that you charge from the grid (for example, to take advantage of cheap overnight electricity rates) also qualifies, provided it is installed in a residential property by a VAT-registered installer.

What about conservatory roof replacements with insulated panels?

Usually not. A replacement conservatory roof is building work, and HMRC treats insulation that’s built into wider building work as part of one standard-rated job (its own example is an extension with insulated walls and roof). So expect 20% VAT on the whole roof. Topping up the insulation in an existing roof as a separate, separately priced job is different: that’s an insulation installation and qualifies.