tepeo, a UK-based ClimateTech disruptor, has decided to take matters into its own hands. By offering up to £2,000 cashback to cover the VAT on its ZEB heat battery boiler, tepeo aims to demonstrate the transformative impact that a fairer tax system could have on making low-carbon heating solutions accessible to all.
Levelling the playing field for low-carbon technologies
Heat batteries like the ZEB are an innovative solution for homeowners looking to transition to greener heating. Acting as a direct replacement for fossil fuel boilers, the ZEB is easy to install, compatible with existing heating systems, and enables households to shift energy consumption to off-peak times. This flexibility not only lowers energy bills but also supports the UK’s electricity grid as it transitions to renewable energy.
However, these benefits are overshadowed by the financial burden of purchasing a heat battery due to the lack of VAT relief. The Government’s decision to exclude these technologies, despite recognising their importance in heat decarbonisation, has sparked frustration among industry leaders and MPs alike.
Johan du Plessis, CEO of tepeo, shared his disappointment: “The Government’s decision leaves homeowners with limited access to affordable low-carbon heating options. At tepeo, we want to show how VAT relief could make a real difference. Absorbing the VAT cost is a significant step for us as a young company, but it’s essential to ensure UK households aren’t penalised for choosing greener heating technologies.”
By offering the cashback initiative, tepeo aims to highlight the potential benefits of extending VAT relief to alternative technologies. This move not only reduces the financial barrier for homeowners but also underscores the urgent need for a more inclusive tax policy to accelerate the UK’s journey to Net Zero.
A homeowner’s perspective
For many homeowners, the cost of transitioning to low-carbon heating remains a significant barrier. Damian Lofthouse, a ZEB owner and advocate for renewable technologies, explained: “The main barrier for tepeo is the initial upfront price.
“People are always going to choose a fossil fuel boiler purely on a cost basis. If this barrier was removed and the prices were similar, people would choose the ZEB. It’s a travesty that the Government forces homeowners to choose between a heat pump or a fossil fuel boiler. More low-carbon technologies, like the ZEB, should be included in subsidy and VAT schemes. This change would unlock the potential to give households a fair choice and help us reach net zero.”
Building momentum for change
The heating industry is rallying behind calls for VAT reform. Jack Abbott, Labour MP for Ipswich and an advocate for fair taxation of green technologies, commended tepeo’s initiative: “tepeo’s decision to offer this discount highlights how businesses can lead the way in driving sustainable innovation through collaboration with the Government.
“The Government should take the next step by expanding VAT relief to a wider range of low-carbon technologies, making greener, more cost-effective heating solutions accessible to even more households.”
This sentiment was echoed by Miatta Fahnbulleh, Minister for Energy Consumers, who recently highlighted the potential of heat batteries, particularly for homes with space constraints. While heat batteries offer a practical and effective alternative to heat pumps, their exclusion from VAT relief places them at a competitive disadvantage, hindering their adoption.
A vision for the future
tepeo’s cashback offer is more than a promotional initiative — it’s a call to action. By covering the VAT cost, tepeo is sending a powerful message to policymakers: a fair tax system can unlock the potential of innovative technologies, driving widespread adoption and accelerating the UK’s transition to a low-carbon economy.
The ZEB, which has been trialled successfully in various settings, has demonstrated its effectiveness in reducing household energy bills and supporting grid stability. This makes it a critical player in the UK’s push toward sustainable heating solutions.
Johan du Plessis concluded: “We hope our initiative will inspire policymakers to take action. If we want to achieve net zero, we need a fair and inclusive tax system that supports all green technologies and doesn’t favour the wealthy or those in larger homes. The time to act is now.”
The way forward
By offering up to £2,000 cashback, tepeo is not only making low-carbon heating more accessible but also setting a benchmark for how Government and industry can collaborate to achieve shared sustainability goals.
For installers, specifiers, and homeowners, this initiative is an opportunity to experience the benefits of the ZEB without the financial strain caused by VAT. It’s a practical solution to a systemic issue and a stepping stone toward a future where all low-carbon technologies are given equal footing in the fight against climate change.
The question now is whether policymakers will take the next step to support businesses like tepeo and homeowners across the UK. If the Government is serious about reaching net zero, expanding VAT relief to include technologies like heat batteries is not just an option—it’s a necessity.
To learn more about how this change could positively impact your business and your customers, get in touch with tepeo today.
Note: Terms and conditions apply. Visit tepeo.pro for more information
Image provided by tepeo