VENSAV3260 - Energy-saving materials: Interaction between energy-saving materials supplied with other works and the 60% test (Applicable to supplies made in GB between 1 October 2019 and 31 March 2022 and in NI for supplies made from 1 October 2019).

Where energy-saving materials are supplied with other works, it is necessary to establish the nature of the supply in accordance with the rules described earlier in this guidance. It is only if the supply can be characterised as a single supply of the installation of energy-saving materials that it can qualify for the reduced rate under Group 2 of Schedule 7A. If it does qualify, then, for the purposes of applying the 60% test, it is necessary to include the cost of all of the materials which form part of that supply. This includes materials that, if supplied independently, would not fall within the definition of energy-saving materials.

Example: solar panels and batteries that store power produced by the solar panels form a single supply of the installation of energy-saving materials in residential accommodation. In applying the 60% test, it will be necessary to include the cost of all materials relating to the solar panel and battery and which are left in place after the installation.