VAT remains at 5% for renewable technologies
There will be no increase in the VAT charged for renewable technologies which remains at 5%. This is despite the rise for the top rate of VAT from 17.5% to 20%.
- Renewable technolgies are still subject to only 5% VAT rate to encourage their uptake
- The current Clean Energy Cashback Scheme (FIT) for solar PV and wind turbines are linked with the Retail Price Index therefore will rise with the rate of inflation. This means your investment will pay back in real terms as inflation inevitably rises.
- The expected Renewable Heat Incentive (RHI) will also be linked to the RPI therefore you will receive an excellent return on your heat pump and solar thermal installations once this announced, even if they are installed prior to the announcement.