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The relief nobody applies for, because it is applied for you. It is also the one most often got wrong on a quote: the zero rate covers the installation, not the shopping trip, and a handful of common measures sit outside it entirely.
Headline award
20% off labour and materials
Not a grant — a tax relief that quietly takes a fifth off most upgrade quotes.
Illustrative figures.
Saved on a £9,000 heat pump
£1,500
Against the 20% standard rate
Saved on £6,000 of solar
£1,000
Panels, inverter and labour
Measures covered
14
Batteries and EV chargers joined in 2024
Reverts to 5% VAT
Apr 2027
Unless the relief is extended again
Illustrative. Placeholder figures to show what this page will hold. Real ranges arrive with the quote and performance data behind them.
What it pays
The relief applies to the supply and installation together, by a VAT-registered installer. Buy the same materials yourself and you pay the standard rate on them, which is why a DIY solar array is rarely as cheap as it looks.
| Measure | Award | Notes |
|---|---|---|
| Heat pumpsAir, ground and water source, including the cylinder and pipework in the same job. | 0% VAT | Air, ground and water source, including the cylinder and pipework in the same job. |
| Solar panelsPanels, mounting, inverter and labour. Roof repairs done at the same time are not covered. | 0% VAT | Panels, mounting, inverter and labour. Roof repairs done at the same time are not covered. |
| Battery storageRetrofitted to an existing array, or standalone. Added to the list in February 2024. | 0% VAT | Retrofitted to an existing array, or standalone. Added to the list in February 2024. |
| InsulationLoft, cavity, solid wall, floor and draught-proofing when installed rather than supplied. | 0% VAT | Loft, cavity, solid wall, floor and draught-proofing when installed rather than supplied. |
| Heating controlsThermostatic radiator valves, programmers and smart controls fitted as part of a job. | 0% VAT | Thermostatic radiator valves, programmers and smart controls fitted as part of a job. |
| Double glazingWindows and doors are not energy saving materials for VAT, however they are marketed. | 20% VAT | Windows and doors are not energy saving materials for VAT, however they are marketed. |
| Gas boilersReplacing a boiler with a more efficient boiler is standard rated. | 20% VAT | Replacing a boiler with a more efficient boiler is standard rated. |
Zero rate reverts to 5% on 1 April 2027
Applications have to be in before 31 March 2027. Schemes with a published end date rarely extend at the last minute, and installer diaries fill up first.
Last checked against these sources on 20 August 2026.
Illustrative. Placeholder figures to show what this page will hold. Real ranges arrive with the quote and performance data behind them.
Who qualifies
Written as the published rules work rather than as the marketing describes them. If one line on the left fails, nothing else matters.
How to apply
Each step carries roughly how long it takes, because the total is what decides whether the work happens this winter or next.
A correct quote shows 0% against the qualifying work. If a single 20% line covers the whole job, ask for it to be itemised before you sign.
Splitting the order — panels from one supplier, fitting from another — pushes the materials back to the standard rate. The saving usually outweighs any discount from buying direct.
Scaffolding for a re-roof, a consumer unit upgrade or a plastering repair may be standard rated even when the main measure is not. A tidy invoice avoids an argument later.
There is no form and no refund. If VAT was charged in error, the installer has to correct the invoice — HMRC will not refund you directly.
Combining
No scheme will fund the same measure twice. Getting the order right — insulation under one scheme, heating under another — is where the money is.
Nothing we have found. This one sits on top of the other schemes rather than competing with them.
What changed
Amounts, qualifying benefits and end dates all move. Anything you read about this scheme that predates the most recent entry here should be treated as out of date.
1 April 2022
The reduced rate became a zero rate in Great Britain, with the means-tested conditions that used to apply removed at the same time.
1 May 2023
The zero rate was brought into line across the UK, ending a year where the same job cost 5% more in Belfast than in Bristol.
1 February 2024
Standalone battery storage joined the list, so a battery retrofitted years after the panels now qualifies on its own.
Questions
No, and that matters. It reduces the price you are charged rather than paying you money, so it does not count against grant limits and there is nothing to declare.
No. The zero rate applies where one business supplies and installs the materials. Buying panels online and paying someone to fit them leaves 20% VAT on the hardware.
No. Double and triple glazing are not on HMRC's list, whatever the showroom says. Insulation, heat pumps, solar and batteries do qualify; windows, doors and boilers do not.
On current legislation the zero rate ends and the 5% reduced rate returns. On a £9,000 heat pump that is about £430 back on the price, so a job planned for early 2027 is worth not delaying.
Yes. The relief follows the building rather than who lives in it, so rented homes qualify on the same terms as owner-occupied ones.
Keep reading
A fixed grant off a heat pump, claimed by your installer and taken off the quote.
£7,500How it worksSingle insulation measures for lower council tax bands, with no benefits test.
One measure, mostly fundedHow it worksSupplier-funded whole-house retrofits for low-income households in the worst homes.
Whole-house, fully fundedHow it worksStart with your postcode. We work from what is already recorded about the property, not from a form you have to fill in.