As a measure to help householders cope with rising energy costs, the VAT rate on heating controls has been temporarily reduced from 5% to 0% and previously complex eligibility criteria removed. This offer should allow heating controls upgrades to be offered to householders at a lower cost and could allow installers who take advantage of this opportunity to offer energy-saving upgrades at a reduced cost without impacting their profit margin.

Depending on the upgrade, a Research Report related to the change of TRVs, for example, indicates that households could achieve energy savings between 8% and 46% with changing a manual radiator valve to a newer TRV offering the highest savings – that’s a powerful message for installers to promote to their customers.

Key points

While we appreciate that many heating professionals are up to date with the potential application of the zero VAT rate on heating controls we thought it might be useful to summarise some of the key points as follows:

• A 0% rate of VAT rate applies to both the installation of heating controls and the cost of the controls
• It is not possible to get the zero rate of VAT if, for example, heating controls were purchased from a DIY shop. A customer would have to pay for both the supply and the installation to benefit
• Heating and hot water controls covered by this reduced rate are manual or electronic timers, thermostats, and mechanical or electronic valves, including thermostatic radiator valves
• All homes in England, Wales, and Scotland are eligible for the 0% VAT rate without any qualifying conditions. Previous qualifying conditions continue to apply in Northern Ireland.

In addition to these points, an important factor for heating installers to consider is that the zero VAT rating will only apply to heating and hot water controls installed separately from other heating system work. When controls are installed as part of a central heating installation or a boiler replacement, then the VAT rules consider this to be a single supply of a central heating system or boiler replacement. As neither of these are on the list of eligible energy saving materials (unless grant funded or a heat pump system), then the standard rate of VAT will apply to the whole job.

Thermostatic radiator valves

As mentioned earlier, the 0% VAT rating applies to the installation of a range of heating controls. Studies suggest that even a small upgrade can help consumers make big savings on their heating bills. For example, installing TRVs on radiators where none are fitted, can significantly reduce wasted heat. Tests by Salford University, on behalf of BEAMA and BRE (2018), showed that a boiler can use 18% less gas when TRVs are used, to avoid barely noticeable levels of overheating in rooms not controlled by the central room thermostat.

So, how old is old when it comes to radiator thermostats? As a general guide, if a thermostat is 30 years or older it’s time to upgrade both the radiator valve and thermostat. If the valve is between 15 and 30 years old or newer, then only the thermostat may need changing. Properly selected and installed, modern TRVs are proven to provide accurate temperature control room by room and preventing the unnecessary – and expensive – overheating of empty rooms, while ensuring that occupied rooms are comfortably warm. Having this level of control can really help households reduce their heating bills and their carbon emissions.

Maximise efficiency

Among the latest innovations in TRV technology is the Danfoss RAS-B2 Dynamic Valve. As well as maintaining constant desired temperatures room-by-room, the RAS-B2 also makes it fast and easy to maximise efficiency by ensuring the heating system is properly balanced. Unlike other TRVs which only act as flow limiters, the RAS-B2 features a differential pressure controller, so pressure drops over the valve remain at a constant level and flow through the valve is maintained at both full (winter) and partial (autumn/spring) loads. Also, pre-setting of the desired flow is done on the valve, rather than on the lockshield, which it is estimated could save installers up to two hours of valuable working time.

Electronic room controls

In addition to upgrading radiator thermostats, replacing a standard room thermostat with one that controls the boiler using load or weather compensation could also deliver savings whenever the heating is on. A series of tests were conducted by Salford University on behalf of BEAMA and OpenTherm in 2020 to establish the energy saving benefits of two types of advanced room thermostats that comply with the temperature control classes specified in the Energy Labelling Regulations for Space and Combination Heaters. The results show that such control can reduce gas usage by 10-12%, depending on the type of control the existing boiler is compatible with.

The new improved range of Danfoss ERCs provide OpenTherm and on/off load compensation. From its industry-standard backplate to the multiple cable access design and intuitive display wrapped in a full white exterior, this advanced ERC collection is designed for ultimate ease – from selection and installation to programming and everyday use. On top of all that, Danfoss has extended the warranty on the new range from two to five years and all models are 100% Boiler Plus compliant.

Smart heating controls, which allow consumers to adjust time and temperature settings using their mobile phone, could be worth considering for more tech-savvy households. These devices may also sense whether you are in or out and adjust the heating settings automatically for further energy savings. A potentially attractive option for the growing number of ‘IoT’ homes, field trials indicate that 6% less gas is used in houses with a smart thermostat.

Energy-saving opportunity

As more and more households struggle with spiralling heating costs, we are urging installers to take advantage of the energy-saving opportunity that the zero rate of VAT on heating controls offers, from upgrading outdated room thermostats to electronic models to replacing thousands of old, inefficient radiator thermostats with modern TRVs. Full details and guidance on how to account for VAT when installing these energy-saving materials can be found at www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086

And for those heating professionals who want to check out the latest heating controls, the 2022 Danfoss Installer Life Tour is currently making its way around Britain. Installers can hop onto the tour bus when it comes to their area, get hands-on with new products and meet the Danfoss team. To get a list of tour dates and locations, go to installer.danfoss.com/uk-gb/news/installer-life-on-tour and sign up to the newsletter.