Hi Thomas,
Energy-saving materials, when installed in residential accommodation or, from 1 February 2024, a building intended for use solely for a relevant charitable purpose, qualify for relief when they consist of any:
• controls for central heating and hot water systems (read section 2.8)
• draught stripping (read section 2.9)
• insulation (read section 2.10)
• solar panels (read section 2.11)
• wind turbines (read section 2.12)
• water turbines (read section 2.13)
• ground source heat pumps (read section 2.14)
• air source heat pumps (read section 2.15)
• micro combined heat and power units (read section 2.16)
• wood-fuelled boilers (read section 2.17)
From 1 February 2024 additional materials include:
• water source heat pumps (read section 2.18)
• batteries for storing energy converted from electricity (read section 2.19)
• smart diverters (read section 2.20)
In addition, from 1 February 2024, the temporary zero rate will apply to supplies of groundworks, or dredging a body of water, in order to install pipework or other equipment necessary for the operation of a ground or water source heat pump installed in (or in the curtilage of) residential accommodation or buildings intended for use solely for a relevant charitable purpose.
You will note solar panels are deemed to be an energy saving material and, section 2.11 of the same notice below states:-
2.11 Solar panels
Solar panels include all systems that are installed in, or on the site of, a building and that are:
• solar collectors such as evacuated tube or flat plate systems, together with associated pipework and equipment, such as circulation systems, pump, storage cylinder, control panel and heat exchanger
• photovoltaic (PV) panels with cabling, control panel and AC/DC inverter
So, if the replacement inverters are a composite part of a solar panel and, the solar panel needs them to operate then in my opinion the replacement of a part specifically designed to allow the continued use and operation of the solar panel would be zero-rated when installed in accordance with the guidance shown in paragraph 2.7 above
Please see the guidance below:
2. Installations of energy-saving materials
Thank you.
