EV Charging VAT relief rules for ESMs A


ccording to research from the Microgeneration Scheme (MSC), 2023 was a record-breaking year for domestic renewable energy and heating installations across the UK. In total, more than 225,500 systems were fitted, including 189,000 solar PV arrays, as well as small- scale wind, hydro, heat pumps and home energy storage.


This boost in popularity is leading to rapidly growing demand and a sharp rise in bookings for these domestic installations, according to data from accreditation body, the MCS Foundation. Indeed, some firms are reporting enquiries increasing tenfold year-on-year, with customers offering to pay over the odds to shortcut waiting lists.


To harness the greatest opportunity from the ESM boom, the industry will need to adopt a refreshed focus on clean energy tech and consider changing up their commercial strategy to fully embrace microgeneration.


The rise in home energy tech Self-generating, renewable energy is a cost- effective way for homeowners to reduce reliance on the grid, decrease utility bills and protect themselves from energy market volatility. As


adoption rates continue to soar, purchase prices are falling fast. The average cost of solar panels, for example, has dropped by nearly 90% over the past decade, with a relatively standard 3.5 kilowatt (kW) array (perfect for a 3-bed home) now available to purchase for less than £7,000 and capable of saving users more than £400 per annum on their energy bills.


However, while users might find the prospect of streamlining spend and minimising carbon emissions an attractive option, the drawback of domestic renewables is that generation periods are often irregular. Alongside relying upon favourable weather conditions, peak generation is typically during the day when most users are away from home.


As a result, the average consumption rate for self-generated domestic power stands at just 45% in the UK, with some users only able to


In a nutshell, power diverters make clever use of excess renewable generation to improve domestic functions, and power diverting can be assigned based on personal use and benefit


. Rather than making full use of self- generated energy at home, electricity is often exported to the grid at times of high generation and low use, and then typically bought back (at a higher price) when it’s needed most. At myenergi, we believe that eco-smart tech is the most effective solution to bridge the gap between generation and consumption. After all, there are a number of products on the marketplace – including our own integrated ecosystem – that enable homeowners to harness up to 100% of their self-generated energy.


reduce their reliance on mains energy by less than 25%1


So, what does zero-rated tax cover? In January, the UK government announced that VAT relief for ESMs in residential buildings would be extended to include home batteries, power diverters, EV chargers and water-source heat pumps, to widen the accessibility and affordability of home green energy tech. This means that our popular eddi power diverter and zappi solar EV charger are now in scope for VAT relief when fitted to an ESM, while our libbi home battery is classified as zero-rated both as a standalone technology and when connected to (or installed alongside) renewable energy generation solutions.


Households can now therefore save thousands of pounds on purchase and installation prices while simultaneously reducing their carbon


26 | electrical wholesaler April 2024 ewnews.co.uk


Jordan Brompton, co-founder and CMO of myenergi, discusses the government’s recent decision to extend VAT relief for energy-saving materials (ESMs) in residential buildings, and why it offers widespread opportunity for the electrical sector.


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