The government has announced plans to consult on potential changes to VAT regulations for energy saving systems.

The move is believed to encourage more homeowners to harness solar energy to power their households.

The decision comes after the Environmental Audit Committee (EAC) recently conducted an inquiry into the possibilities of technological advancements in solar installations to promote clean energy.

During the inquiry, the EAC wrote a letter to the Energy Security and Net Zero Secretary Grant Shapps, highlighting its findings and calling for the removal of VAT on battery storage.

The committee specifically emphasised the importance of waiving VAT on battery storage, whether installed alongside new solar systems or added to existing rooftop installations.

The committee also expressed concerns regarding the current limitations on expanding access to the National Grid.

It fears that the present grid capacity and expansion plans may impede the UK’s ability to fully leverage its renewable energy potential.

Chairman of the Environmental Audit Committee, Philip Dunne, expressed his optimism about the future prospects of solar energy, which has become the most cost-effective form of power.

Dunne said: “Earlier this month we wrote to the Energy Security Secretary with some recommendations to help the UK meets its solar potential.

“It is very welcome that tangible steps are being taken to address grid constraints and proper consideration is being given to ease the financial burden on households who may choose to install rooftop solar.

“The issue of VAT on batteries being installed after solar panels is an issue that has been raised multiple times within our committee’s work. I am therefore very pleased that this is being considered in the government’s consultation on VAT on energy saving materials.”

Article source: https://www.energylivenews.com/2023/05/31/uk-considers-removing-vat-on-battery-storage-installed-after-solar-panels/