Air conditioning in Dorking homes is making a real difference. Not only does it mean living spaces are cool in summer and warm in winter, but it could be a financial saving too. If it’s time to install air conditioning or upgrade the way you heat your home, we hope you’ll consider an air-to-air heat pump. As there is 0% VAT on energy-saving home improvements until 2027, now is a great time to install a heat pump.
Let’s take a closer look.
0% VAT on heat pumps
In 2023, the UK government brought in a scheme to encourage homeowners to make energy-saving improvements. One of the incentives was to remove VAT when homeowners buy heat pumps. The Labour government are continuing the arrangement, with the scheme due to finish in March 2027. With the standard VAT rate at 20%, removing the VAT means a substantial saving for homeowners.
Why did the government start the scheme?
Until recently, the argument against changing to energy saving systems at home was that it wouldn’t make a difference in the bigger picture. That was because the most significant emissions came from industry and homeowners’ carbon footprints were tiny by comparison. However, that’s now changed. Since 2022, only 15% of the UK’s carbon emissions have come from industry, while 17% have come from domestic use. This means it’s now up to ordinary homeowners to accept their share of the responsibility and make energy-saving improvements at home. To help homeowners make the right choice, the government set the VAT rate for sustainable improvements at zero.
Why is a heat pump an environmentally-friendly choice?
There are several reasons why a heat pump has a lower carbon footprint than other kinds of heating and cooling systems. Heat pumps are exceptionally energy efficient. For each unit of energy they use, they can produce four units of energy to either cool or heat a room. Heat pumps run on electricity, meaning that they’re more likely to use energy from a renewable source. As of January 2025, 42% of the UK’s energy comes from wind or solar. Heat pumps don’t burn anything so they don’t use up fossil fuels or emit carbon. This means they’re a lot kinder to the planet than a traditional gas boiler.
What does the 0% apply to?
There is 0% VAT on air-to-air heat pumps. You’ll be pleased to hear the 0% also applies to parts, labour and other work associated with the installation of the heat pump, like installing pipes and making good afterwards.
Air conditioning in Dorking
Acclimatise installs air conditioning in Dorking homes and we work in other areas of Surrey and Hampshire too. We’re a family business, helping homeowners and businesses lower their carbon footprint and save money on their heating. Explore our site to find out more or get in touch on 01483 570 120.