As part of the government’s Spring Statement 2022, Chancellor Rishi Sunak has announced that homeowner’s can now benefit from 0% VAT on energy efficient systems such as solar panels, heat pumps and insulation. This announcement comes after the energy price cap is set to rise to 54% and with the hope to help improve household energy efficiency whilst keeping energy costs down.
Solar panels are a great way to help lower household energy prices, all whilst generating carbon-free electricity. And now with the new tax relief, solar panels have never been viable for homeowners. According to Chancellor Rishi Sunak, “A family having a solar panel installed will see tax savings worth over £1,000 and savings on their energy bill of over £300 per year.”
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Homes will benefit from zero VAT on energy efficient measures for the next five years as the scheme is to start in April 2022 and will last until 2027. An average UK home can expect to pay between £5,000 to £10,000 for installing solar panels, and between £8,000 - £18,000 for an air source heat pump system
Are Solar Panels the Right Choice for Your Home?
Solar panels take advantage of one of nature’s most powerful yet free resources: the energy produced by the sun. Solar panels, also known as photovoltaic systems (PV systems), use semiconductor technology to convert energy from sunlight into electricity that can power your household.
But, are they the right solution for your home?
On average, more than 4,000 solar panels are installed in the UK each month. The growing popularity of solar panels means that the prices have gone down by 60% over the past decade. The prices of solar panels have steadily decreased over the last years, as new technologies have been discovered to make solar energy components more cost-efficient. On top of that, solar panels do not merely help to reduce your energy bills, but they can also help you earn money from surplus electricity generated. The UK government announced that the VAT on energy efficient measures will be scrapped starting April 2022.
So, the 3 key benefits of solar panels are:
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Electricity all year round - Solar panels generate clean, emission-free electricity to power your home all year round, while their long life span of more than 25 years makes them a long-term good investment.
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Increase the market value of your property & earn money from solar grants - Selling surplus electricity generated by your solar panels is another advantage that solar panels offer. You will not simply earn money from SEG, but also increase the market value of your house.
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Reduce your carbon footprint - A solar-powered home reduces the carbon footprint and helps to eliminate domestic harmful emissions.