Ground Source Heat Pump Association


Reduced rate VAT – 5% – applies on installation of Ground Source Heat Pumps

Installation of any of the following energy saving materials in residential accommodation qualifies for the lower rate of VAT:

The lower rate of VAT applies if the energy saving materials are installed and the work is done on residential accommodation.

The lower rate applies on any necessary extra work that needs to be done as part of the installation. For the installation of a ground source heat pump system this includes the heat pump, the ground loop, system controls and any other installation ancillary to the supply. Because a ground source heat pump installation provides heat at a lower temperature than a fossil fuel boiler there will usually be a need to increase the number or size of the radiators as part of the ancillary work or to install underfloor heating. See Heat Emitter Guide.


This pages summarises advice given in HMRC VAT Notice 708/6 Energy-saving materials.

RHI is available on installation of Ground Source Heat Pump Systems

Owners acquiring new GSHP systems are eligible to receive Renewable Heat Incentive for the use of ground source energy and for heat generated by solar thermal systems for domestic hot water.

See RHI for domestic buildings.