Households planning home energy upgrades face a nationwide rush to find installers before VAT returns on heat pumps, solar panels and batteries on 1 April. The temporary zero rate on energy-saving materials installed in homes ends on 31 March 2027, after which the rate returns to 5%, and ministers are under growing pressure to reverse the change.

The Liberal Democrats say a household fitting an air-source heat pump, a 4kW solar installation and a home battery could face an extra £1,530 unless the work is completed before April. Industry groups warn the deadline will trigger a surge in bookings before April followed by a slowdown afterwards, unsettling a still-developing installer market, and that households whose installations slip past the deadline could face unexpected charges.

Industry warns of a feast-and-famine market

Charlotte Lee, chief executive of Heat Pump Association UK, said the abrupt shift risks triggering a rush of applications, disrupting supply chains and making the process less predictable for consumers. Chris Hewett, chief executive of Solar Energy UK, said the VAT rise would increase the cost of the government's newly launched low-interest loans scheme and run against the aim of widening access to home solar and battery systems.

A spokesperson for the Department for Energy Security and Net Zero said the government was continuing to back electrification, protect support for low-income families and expand access to heat pumps, solar panels and batteries through its warm homes loan scheme. The planned VAT change comes as the government also signals lower overall support for heat pump grants in the coming financial year.