Ministers pushed to reverse ‘policy madness’ of scrapping exemption on 5% tax rise for heat pumps, solar panels and batteries

Households planning to invest in green energy upgrades, including heat pumps and solar panels, risk a nationwide rush to find an installer or face hundreds of pounds in unexpected costs unless the government abandons its looming VAT increase.

Ministers are under growing pressure to reverse plans to scrap the 5% VAT exemption on home heat pumps, solar panels and batteries from 1 April which could add up to £1,530 on to the cost of a smart home energy system amid record demand for fossil fuel alternatives.