The full level of 17.5% VAT has been removed from professionally installed
solar power systems (both for heat and electricity) and subsequently from
other professional installed renewable energy systems (see Renew 128),
so that they now only attract VAT at 5%. However, this 12.5% cut does
not apply to self installed systems or d-i-y kits- the lifeblood of many
small solar companies.
Unsurprisingly there have been some grumbles. For example, Solartwin
of Chester, which describes itself as a supplier of affordable (but
over-taxed) solar water heating systems, issued a press release
challenging Customs and Excise to think again. Those with the
competence to install their own systems are being taxed at over triple
the rate of someone who has it installed professionally.
EU regulations on VAT were cited as the reason for not being able to
remove full VAT for d-i-y systems. But where theres a will their
ought to be a way....
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