ECA welcomes Government battery storage response
ECA has welcomed Government's announcement that electrical battery storage systems will be subject to VAT relief when either retrofitted to a qualifying energy saving material, or installed as a stand alone technology connected to the grid.
The move represents a significant win for ECA. It follows ECA's lobbying efforts to better align policy with Net Zero targets. Learn more about ECA's work in this area, here.
A statement issued buy HMRC reads:
"The government recognises the integral role that electrical battery storage can play in reducing households’ reliance on the grid, both when retrofitted to a qualifying ESM and when used as a stand alone technology connected to the grid."
"This technology already qualifies for VAT relief when installed alongside a qualifying ESM, as it is ancillary to a zero-rated supply. The government agrees with respondents, though, that this technology meets all of the stated objectives for this VAT relief in its own right, and will therefore bring electrical battery storage within the scope of the relief. This means that the technology will now also qualify for VAT relief when either retrofitted to a qualifying ESM, or installed as a stand alone technology connected to the grid."
"The government hopes this reform will enable more consumers to retrofit electrical battery storage to existing ESMs, allowing households to maximise the efficiency of their solar panels, wind turbines, and water turbines. Government response. The government recognises the integral role that electrical battery storage can play in reducing households’ reliance on the grid, both when retrofitted to a qualifying ESM and when used as a stand alone technology connected to the grid. This technology already qualifies for VAT relief when installed alongside a qualifying ESM, as it is ancillary to a zero-rated supply."
Read the full outcome of the consultation here.
[edit] Related articles on Designing Buildings
- Battery energy storage systems with grid-connected solar photovoltaics BR 514.
- Battery storage.
- DC isolators for photovoltaic systems (FB 68).
- Domestic micro-generation.
- Energy price crisis: ECA calls for energy levy reform.
- Energy storage - the missing piece?
- Energy storage for buildings.
- Energy storage in buildings - a technology overview BG73 2018.
- Flow battery.
- Fly wheel.
- Fuel cell.
- Graphene batteries.
- Lead-acid battery.
- Lithium-ion battery.
- Tax relief.
- The use of batteries to store electricity for buildings.
- Types of battery.
- VAT
- VAT - Option to tax (or to elect to waive exemption from VAT).
- VAT - Protected Buildings..
- Why the UK needs to support emerging tech like energy storage.
Featured articles and news
Global BACS Market: analytics and optimisation
A BSRIA glance at building automation and control systems.
What it is and how to use it.
Types of insulating plaster by binder and insulant.
Investors in People: CIOB achieves gold
Reflecting a commitment to employees and members.
Scratching beneath the surface; a guide to selection.
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.
UK gov apprenticeship funding from April 2024
Brief summary the policy paper updated in March.
For the World Autism Awareness Month of April.
70+ experts appointed to public sector fire safety framework
The Fire Safety (FS2) Framework from LHC Procurement.
Project and programme management codes of practice
CIOB publications for built environment professionals.
Sustainable development concepts decade by decade.
The regenerative structural engineer
A call for design that will repair the natural world.
Buildings that mimic the restorative aspects found in nature.
CIAT publishes Principal Designer Competency Framework
For those considering applying for registration as a PD.
Introducing or next Guest Editor Arun Baybars
Practising architect and design panel review member.