British people must pay higher VAT on insulation and solar panels after EU ruling states that the lower 5% VAT on energy efficiency improvements is in breach of the EU law.

More information: Higher VAT on energy saving products in the UK

At the beginning of June 2015, The European Court of Justice ruled that 5% VAT on insulation and solar panel installations is against the EU law. The court insisted that British people who are not in social housing must pay 20% VAT meaning prices for installing home insulation and solar panels may increase with as much as £2,500.

Households which are part of the social housing scheme in the UK will be allowed to use the reduced 5% VAT for installing energy saving products.

European Union\’s carbon reduction initiative 10 years ago resulted in the introduction of a range of government pay-as-you-save UK schemes helping British homeowners have greener homes. The EU ruling in June which insists people pay 20% VAT on energy saving measures is seen as \”conflicting\” by a number of British politicians, such as Ashley Fox, leader of the UK Conservatives in the European Parliament.

Marvin Patel, Managing Director of the London-based company Infinity Energy Organisation, shared his concerns that \”the ruling might be a huge obstacle towards helping more people have warmer more energy-efficient homes.\” As an accredited finance provider for energy saving products, Infinity Energy Organisation has been actively supporting British households decrease their carbon footprint and enjoy a warmer home for less.

Mr. Patel, who will be introducing an Energy Efficiency Advice Centre later this year, insists that although the EU Court doesn\’t seem to support the reduction of UK\’s carbon footprint, this is not a reason why British homeowners should give up on using renewable technology.

Infinity Energy Organisation offers no upfront cost finance option for solar panels which means that installing energy efficiency measures like solar panels is still a great option for most British households regardless of the new EU ruling regarding VAT on energy saving measures.

Further information: Higher VAT on energy saving products in the UK – visit http://curia.europa.eu/jcms/upload/docs/application/pdf/2015-06/cp150065en.pdf