The recent ruling (4th June 2015) by the European Union (EU) forbids a reduced rate of Value Added Tax (VAT) from being applied to certain energy saving materials in the UK. It ruled that the UK was not compliant with the EU in allowing a reduced rate of VAT to apply to a number of energy saving materials, including insulation and rooftop solar panels. The full list of technologies is available from the HMRC.
In response, the Sustainable Energy Association (SEA) and a wide range of partners launched a Private Members Bill campaign on 3rd June 2015 to promote the Cost Effective Energy Measures Bill. This would require the UK Government to base a new Energy White Paper on a full cost and benefit analysis of all measures available to meet the various UK energy policy objectives. The SEA expects that Building-level measures such as energy efficiency, low carbon and renewable heating and rooftop solar PV, will rank more cost effectively than many options for large scale power generation in a like-for-like analysis.
The open letter sent to the Chancellor of the Exchequer, George Osborne, is supported by 42 organisations who joined the SEA to call for a clear statement from the government confirming that nothing will change until the March 2016 budget at the earliest.
The Sustainable Energy Association is a member based industry body offering innovative policy solutions that link up building-level technologies and the wider energy system to achieve a low carbon, secure energy future for the UK, benefits for UK consumers, and commercial growth for businesses working in the sector.
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