Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the case for removing VAT from domestic microgeneration renewable products and installations to help consumers to adopt domestic renewable energy sources.

Under current VAT rules, the installation of water and wind turbines is subject to the standard rate of VAT. However, the installation of other energy saving materials that generate domestic energy, such as solar panels and micro combined heat and power units, are subject to the reduced rate of VAT when certain conditions are met.

Although there are no current plans to extend the scope of the relief already in place, the Government keeps all taxes under review.