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The Chancellor’s Spring Statement brings welcome news to the domestic air conditioning market

On 23rd March, Chancellor, Rishi Sunak, announced his Spring Statement and shared some good news for the domestic air conditioning market.

VAT cut

As a measure taken to make living more affordable, VAT has now been removed on ALL domestic air conditioning heat pump units.

The VAT is to be cut from 5% to 0% on the installation of energy-efficient materials in homes, including heat pumps, solar panels and insulation.

Zero VAT will be available for a 5 year period, from April 2022 to 2027, before reverting to the reduced rate of 5%.

Cut carbon emissions

Heat pumps cut carbon emissions and are an energy-efficient way to heat your home and lower fuel bills. This supports the government’s Net Zero strategy to end our contribution to climate change, which was delivered in 2021 in the run up to COP26 (the 26th United Nations Climate Change Conference).

The strategy includes targets such as no new gas boilers in homes after 2035, as well as making grants of £5,000 for heat pumps available.

Lower costs

Once you've installed your air source heat pump, you’ll be eligible for the Renewable Heat Incentive (RHI) government scheme, where you’re paid for the heat your renewable system generates. A typical home can expect to receive around £7,000 in payments over a 7 year period, making heat pumps a very cost-effective way to reduce carbon footprint.

For expert advice on heat pumps and a competitive quote, contact our experienced team on 0333 305 0573 or email


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