Chris Gardner, Co-founder of the development lender Atelier, commented: “With the cost of building materials surging once again, the Chancellor’s surprise tax cut on energy-saving technology offers a welcome safety valve – both to the construction industry and to homeowners looking to save money on their energy bills.
“The scrapping of VAT on vital, but still comparatively expensive, tech like solar panels and heat source pumps is a logical and popular response to the spike in energy prices that kicks in next week. But it will also offer long-term benefits to homeowners, the environment and UK energy policy.
“Every home fitted with solar panels can be one less home drawing power from Britain’s energy grid, and every home heated by an air source pump means one less boiler burning imported gas.
“While thousands of homeowners and housebuilders would fit energy-saving technology if they could, cost remains a major hurdle. The ‘green premium’ – the difference in cost between using the most energy-efficient versus conventional materials – is slowly reducing as the new technology is produced in higher quantities.
“But with building materials costs rising across the board, today’s 5% cut in the cost of energy saving technology suddenly makes it more affordable, and we look forward to running the numbers with our developer partners who want to go green.
“There’s no doubt that the market appetite for this technology is there, but developers and homeowners just need a nudge to embrace it fully, whether that’s from Government or from initiatives like Atelier’s Carbonlite Challenge, which offers significantly discounted finance to developers who use sustainable, low carbon designs.”
