eandg Posted September 30, 2019 Share Posted September 30, 2019 I see VAT on solar is increasing from 5% to 20% in October; can you reclaim this for new builds? Link to comment Share on other sites More sharing options...
newhome Posted September 30, 2019 Share Posted September 30, 2019 41 minutes ago, eandg said: I see VAT on solar is increasing from 5% to 20% in October; can you reclaim this for new builds? On materials yes you can. On labour or supply & fit as a new build it needs to be zero rated. 1 Link to comment Share on other sites More sharing options...
Temp Posted September 30, 2019 Share Posted September 30, 2019 +1 However it has to be on site - not for example a ground mounted array on an adjacent paddock.. https://www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086#para2-13 Link to comment Share on other sites More sharing options...
eandg Posted September 30, 2019 Author Share Posted September 30, 2019 4 hours ago, newhome said: On materials yes you can. On labour or supply & fit as a new build it needs to be zero rated. So for an MCS approved installer to supply and fit I couldn't reclaim but would instead need to argue the toss and get them to zero rate it? 1 Link to comment Share on other sites More sharing options...
Roundtuit Posted September 30, 2019 Share Posted September 30, 2019 2 minutes ago, eandg said: So for an MCS approved installer to supply and fit I couldn't reclaim but would instead need to argue the toss and get them to zero rate it? Should be no need to argue. Them's the rules! 1 Link to comment Share on other sites More sharing options...
scottishjohn Posted September 30, 2019 Share Posted September 30, 2019 add 15% vat and that makes it even harder to justify having solar Pv even if you can use it all Link to comment Share on other sites More sharing options...
andyscotland Posted September 30, 2019 Share Posted September 30, 2019 25 minutes ago, scottishjohn said: add 15% vat and that makes it even harder to justify having solar Pv even if you can use it all Seems about as short sighted as usual. Could be justifiable on a new build as part of the trade-offs in SAP, so really doesn't need to be zero-rated there but will be by default. While for retrofit, which is where the bigger carbon saving potential lies, as you say with no FIT and full VAT it's a much trickier sell... Link to comment Share on other sites More sharing options...
eandg Posted September 30, 2019 Author Share Posted September 30, 2019 The Smart Export Guarantee comes in from 1 January with Octopus already offering 5.5p/Kw which is more than the feed in tariff when it was abolished. And in Scotland at least you can borrow interest-free (over up to 12 years to fund it). So the numbers look a bit better and if it helps make a dent re: sustainability (or just makes you feel a bit better about it) then it's perhaps not a bad price to pay. 1 Link to comment Share on other sites More sharing options...
newhome Posted September 30, 2019 Share Posted September 30, 2019 1 hour ago, Roundtuit said: Should be no need to argue. Them's the rules! +1 and surely MCS installers should be used to installing in new builds? Link to comment Share on other sites More sharing options...
Temp Posted September 30, 2019 Share Posted September 30, 2019 (edited) 2 hours ago, eandg said: So for an MCS approved installer to supply and fit I couldn't reclaim but would instead need to argue the toss and get them to zero rate it? Yes. You just refer them to VAT Notice 708 which tells them what to charge you. Ask for a revised quote. It might help to give them a "certificate" which is essentially a letter confirming that the work they are doing is on a new house under construction and providing the planning reference number, the plot address and your name and address. VAT 708 also mentions such a certificate but I think it's only compulsory for work on a charity building or similar. It's not officially required to zero rate work on a new dwelling. The only proviso for all this is that your house must not be completed when the PV is installed. It must still be under construction. Edited September 30, 2019 by Temp 1 Link to comment Share on other sites More sharing options...
Ed Davies Posted October 1, 2019 Share Posted October 1, 2019 10 hours ago, eandg said: 5.5p/Kw 5.5p/kWh. Imagine somebody on a car forum not knowing the difference between miles per hour and miles. Link to comment Share on other sites More sharing options...
Ed Davies Posted October 1, 2019 Share Posted October 1, 2019 Personally, I'm OK with 20% VAT on solar so long as they also charge 20% on other forms of domestic energy. 1 Link to comment Share on other sites More sharing options...
scottishjohn Posted October 1, 2019 Share Posted October 1, 2019 (edited) 3 hours ago, Ed Davies said: Personally, I'm OK with 20% VAT on solar so long as they also charge 20% on other forms of domestic energy. yes that then alters the calculation . Edited October 1, 2019 by scottishjohn Link to comment Share on other sites More sharing options...
ProDave Posted October 1, 2019 Share Posted October 1, 2019 15 hours ago, eandg said: The Smart Export Guarantee comes in from 1 January with Octopus already offering 5.5p/Kw which is more than the feed in tariff when it was abolished. And in Scotland at least you can borrow interest-free (over up to 12 years to fund it). So the numbers look a bit better and if it helps make a dent re: sustainability (or just makes you feel a bit better about it) then it's perhaps not a bad price to pay. But you only get paid the export on what you actually export. So far I would have earned less than £10 this summer if I had been able to sign up for that. To do so, you have to sign away your principles and get a smart meter, and you have to have paid over the top to have it installed my an MCS company. It is not even worth working out how many years my £10 would take to repay the extra costs involved before you can actually sign up to this export payment scheme. Link to comment Share on other sites More sharing options...
andyscotland Posted October 1, 2019 Share Posted October 1, 2019 15 hours ago, Ed Davies said: Personally, I'm OK with 20% VAT on solar so long as they also charge 20% on other forms of domestic energy. Quite. Of course, they don't and almost certainly won't. I suspect the government's argument would be that the panels are equipment and so standard rated the same as e.g. your consumer unit or any other fixed components of your domestic electrical installation. But of course buying solar panels you're effectively pre-paying for the electricity they generate so it does seem reasonable they should be taxed the same as other forms of energy. Link to comment Share on other sites More sharing options...
SteamyTea Posted October 2, 2019 Share Posted October 2, 2019 (edited) It will be interesting to see if PV installation prices really increase because of this. I am a great believer in price points. If a product goes above a price point, it stops selling. Edited October 2, 2019 by SteamyTea Link to comment Share on other sites More sharing options...
Andrew Posted October 2, 2019 Share Posted October 2, 2019 Are battery storage systems zero rated if supply and fit on a new build? Can't find a straight answer. Link to comment Share on other sites More sharing options...
vivienz Posted October 2, 2019 Share Posted October 2, 2019 41 minutes ago, Andrew said: Are battery storage systems zero rated if supply and fit on a new build? Can't find a straight answer. If they are installed as part of a solar PV system, then yes, is my understanding, 1 Link to comment Share on other sites More sharing options...
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