What the scheme is
The UK's Energy Saving Materials (ESM) VAT relief scheme allows qualifying energy-saving installations at residential properties to be charged 0% VAT, instead of the standard 20% rate — a straightforward, immediate saving with no separate claim or paperwork required on your part.
Who qualifies
The 0% rate applies when every room in the job is at a domestic (residential) property, and we carry out the full installation ourselves. It does not apply to commercial or industrial premises, and it does not apply to supply-only orders, since the scheme covers installation services, not equipment shipped for someone else to fit.
Our online quote tool applies this automatically: if every room in your job is marked as domestic and you choose a full installation, you'll see the 0% rate reflected in your price breakdown without needing to do anything extra.
What happens if a job mixes domestic and commercial rooms
If any room in a multi-room job is commercial or industrial, the entire job is charged the standard 20% rate — the scheme only applies when every room qualifies.
FAQ
Do I need to provide any paperwork to get the 0% rate?
No — if your job qualifies (domestic property, full installation), the 0% rate is applied automatically to your invoice. There's no separate claim process.
Does the 0% rate apply to a supply-only order for my own home?
No. The scheme covers installation services, so it only applies when we carry out a full installation. Supply-only orders are charged the standard 20% rate regardless of property type.