As part of the Spring Statement in 2022, then Chancellor Rishi Sunak announced that VAT would be further reduced to 0% on the installation of both air conditioning units and air source heat pumps. This was introduced from April 1st 2022 as part of the British energy security strategy. It can benefit homeowners by allowing them to purchase an air conditioning or heat pump unit for a much lower total cost, as there is now no VAT to pay on installation. But why was this introduced and how can it benefit you? If you are considering a heat pump or AC system for your home, allow us to explain why you should take advantage of this offer.

Why was VAT reduced to 0% on air conditioning and heat pumps?

The VAT rate for air conditioning and heat pump installation had previously been reduced from 20% to 5%, but the government decided that this was not enough of an incentive, so decided that VAT should be removed altogether. The idea behind this reduction was to provide encouragement to UK residents to install a home air conditioning unit or air source heat pump. This can help to reduce the carbon footprint of many homeowners, and the Government want to reduce domestic contributions to carbon emissions in order to combat the ongoing energy crisis. With energy bills continuing to rise, these alternative heating and cooling methods can help you keep your home at a comfortable temperature at a fraction of the cost.

How can air conditioning benefit your home?

With air conditioning being included in this measure to reduce energy costs along with heat pumps and solar panels, now is the best time to have an air conditioner installed in your home. The versatility of AC units means you can maintain a constant temperature in your home. The up-front cost of installation can be cheaper than air source heat pumps and, therefore, an air conditioner is one of the cheapest options to ensure comfort in your home.

How can an air source heat pump benefit your home?

Not only can you benefit from 0% VAT on air source heat pumps, but government grants have also been introduced to allow you to get money off the cost of installation for both air and ground source heat pumps. You can get £5,000 off the cost of air source heat pump installation and, with the 0% VAT also applied, you can ensure maximum savings. There has never been a better time to install a heat pump in your home. Once up and running, they can be four times as efficient as a gas boiler and this will be reflected in your energy bills.

If you are interested in taking advantage of this government initiative and wish to arrange the installation of an air conditioning unit or heat pump within your home, contact JP Air Conditioning today. Our professional team can carry out comprehensive installation to make sure that your new unit is up and running with 0% VAT and government grants applied. To make an enquiry with us today, call now on 0208 333 1191 or email so that we can understand your requirements and minimise costs for you.