SolvedVENSAV3062 | Energy-saving materials: smart diverters
From HM Revenue & Customs · VAT Energy-Saving Materials and Grant-Funded Heating Supplies
From 1 February 2024, the retrofitting of a smart diverter to one or more energy-saving material installed in residential accommodation or a building intended for use solely for a relevant charitable purpose qualifies for the temporary zero rate.
A smart diverter automatically diverts electricity generated by one or more energy-saving materials to electrical appliances in the accommodation or building, including other microgeneration systems such as ground and air source heat pumps.
Smart diverters installed as part of the installation of a qualifying energy-saving material normally fall to be ancillary and therefore form part of a single supply, which is currently subject to the temporary zero rate up to 31 March 2027 and will be reduced rated thereafter – see VENSAV3210.