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The Windsor Framework agreement will make installing renewable energy and energy efficient measures for homeowners in Northern Ireland cheaper thanks to a tax break.
Under the Windsor Framework, VAT exemptions for solar panels and heat pumps that are already in place in England, Scotland and Wales will be extended to Northern Ireland.
This will reduce the average cost of renewables installations by between 5% and 20% depending on the VAT charged and the technology installed, and homeowners could save up to a maximum of 20% on some renewable installations.
The lifting of VAT on these technologies will be a boost to the green sector in Northern Ireland and will help homeowners reduce their energy bills, says renewable energy charity MCS Charitable Foundation, which campaigned for the exemption.
MCS Charitable Foundation’s Director of External Affairs David Cowdrey said, “Installing energy efficiency measures and domestic renewables in people’s homes is a boost to the economy by providing skilled green jobs, and will help reduce energy bills. This now allows Northern Ireland to have the same VAT rules as the rest of the UK on renewables like solar panels, heat pumps and energy efficiency measures meaning that Zero Carbon also means Zero VAT.
“We need to be scaling up the installation of renewable energy across all housing in Northern Ireland to tackle the climate emergency and bring down the cost of living permanently.”
