The REA has welcomed today’s announcement to extend VAT
relief for the installation of electrical battery
storage;
As battery storage is a critical technology for both
delivering decarbonisation and bringing down energy bills, the
REA states that this is an important policy win;
The REA now urges government to work towards seeing a
fair tax treatment across all low carbon technologies.
The REA (Association for Renewable Energy and Clean Technology)
has welcomed today’s announcement from government to provide VAT
relief on the installation of battery storage systems within
people’s homes.
This has been a long-term call of the REA’s for two years, having
met with Treasury several times and coordinated cross stakeholder
letters calling for this amendment.
This announcement aligns the VAT treatment of battery storage
with other energy saving materials, ensuring that VAT is zero
rated when households are looking to improve their energy
efficiency.
Dr Nina Skorupska CBE, Chief Executive of the REA
(Association for Renewable Energy and Clean Technology)
said:
“The REA welcomes that government have announced their
intention to provide VAT relief on the installation of battery
storage systems within people’s homes. This finally aligns the
VAT treatment of battery storage with other energy saving
materials, ensuring that VAT does not need to be paid when
households are looking to do the right thing. Battery storage
helps households to improve their energy efficiency, as well as
make the most of other onsite generation technologies like solar
panels and heat pumps. As such, it is a critical technology for
both delivering decarbonisation and bringing down energy
bills.
“This has been a long-term ask of the REA, and an area of
unequal tax treatment that we are happy to see finally be
resolved.
“However, the Government should consider how they could go
further. It is disappointing that further energy saving
materials, such as thermal storage and EV charging points, will
continue to have the higher rate of VAT applied. Government
should work towards seeing a fair tax treatment across all low
carbon technologies as soon as possible.”
