The British Retail Federation has joined Solar Twin Ltd and numerous others in calling for zero vat on green energy goods. Full details are here.

Barry Johnston, Managing Director of Solar Twin Ltd commented ” It is thrilling that this call is coming from the mainstream of retail business instead of just from green consumers and suppliers like us!

“While there is already a reduced rate of 5% VAT on installed solar systems, the most cost effective way to fit solar is as a DIY. However the VAT here remains at 15% and it will rise to 17.%% in January 2010. It is shocking that next year for every £47 which Britain’s green consumers pays out for a DIY Solartwin solar water heating kit that a whopping £7 of this sum is a tax disincentive. In my view, 0% VAT on green energy kit is essential while taxes on environmental damaging activities should be raised to fill the funding gap.

“Let’s hope that Europe, to whom this matter has been referred,   looks favourably on this 0% VAT proposal.”