Salary sacrifice for solar and heat pumps isn't available yet
Your people get a discount today. We're working on salary sacrifice for later.Here's where it stands. Your people can get a real discount on solar panels and heat pumps today. There's no payroll deduction. We're working to make salary sacrifice possible too.
- Salary sacrifice
- Not yet
- Scheme discount
- Available now
- Payroll changes
- None
I get asked about salary sacrifice for solar and heat pumps every week. Some providers use that label for home energy discounts. Our review of current HMRC guidance says it doesn't fit solar panels or heat pumps today. So I made a simple call. We built the scheme as a plain discount that HR teams can offer with confidence. When the rules change, our members will be first to benefit.
What you get today, and what comes next
These two things are easy to mix up. We keep them separate.
An employee discount
A lower price on solar panels and heat pumps from our checked installers. Your employee pays for the system in the usual way. Nothing comes out of payroll and their tax code stays the same.
- Lower price
- No payroll change
- Tax saving
- Available today
True salary sacrifice
Paying for a system from gross salary before tax and National Insurance. This already works for company cars and cycle to work. We don't think it is compliant for home solar or heat pumps yet. So we don't offer it.
- Lower price
- No payroll change
- Tax saving
- Available today
Why salary sacrifice doesn't cover solar and heat pumps yet
A few benefits have a tax exemption written into HMRC's salary sacrifice rules. Home energy products don't have one yet.
- 01
What already qualifies
Company cars, cycle to work and pension contributions each have their own exemption from the Optional Remuneration Arrangements rules. That exemption is what creates the tax saving.
- 02
What doesn't qualify yet
Solar panels and heat pumps have no matching exemption. Our reading is that HMRC would treat them as a taxable benefit through salary sacrifice. That would cancel out the saving.
- 03
Why we say so
We would rather offer a discount that works than a salary sacrifice scheme that fails a closer look. That protects your people and your business.
We're working with government to change this
We're in talks about extending salary sacrifice to home solar and heat pumps. It would work the same way it does for electric cars. This is possible but not certain, and we don't know when it could happen.
If the rules change, everyone already on the Net Zero Home Scheme moves to salary sacrifice terms first. They won't need to apply again or join a queue.
- 1
Join now
Your people get the scheme discount today.
- 2
Rules change
HMRC adds home energy to salary sacrifice.
- 3
You move first
Members switch to the new terms ahead of the queue.
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Where to go next
- See every product in the Net Zero Home SchemeSolar panels, air source heat pumps, battery storage and plug-in solar.
- Read how the scheme works in three stepsSign up free, your employees get a quote, vetted UK installers fit it.
- Browse employer and employee questions in the Help CentreCost, risk, payroll, launch timelines and product questions answered.
Important. This page reflects our own reading of HMRC guidance as it stands today. It isn't a guarantee of tax treatment. Speak to an independent adviser for advice on your own situation.
FAQ
Questions about salary sacrifice
Straight answers on salary sacrifice and how the scheme discount works.
Is there salary sacrifice for solar panels in the UK?
Not at the moment, based on our review of HMRC's rules. Solar panels lack the exemption from the Optional Remuneration Arrangements rules that company cars have. The Net Zero Home Scheme offers a direct discount instead. We'll move members to salary sacrifice terms if the rules change.
Is there salary sacrifice for heat pumps?
Not today. Heat pumps sit in the same gap in HMRC's rules as solar panels. We're pushing for a change and will tell every member as soon as it happens.
If it isn't salary sacrifice, how does the discount work?
Your employee gets a lower price from our checked installers. They pay from savings or through finance arranged with the installer. Nothing is taken from payroll and their payslip doesn't change.
Why do some schemes say they offer salary sacrifice for solar?
We can only speak for our own position. Our reading of current guidance is that salary sacrifice isn't available for home solar or heat pumps today. That is why we don't use the name.
Will members need to do anything when salary sacrifice arrives?
No. Members already on the Net Zero Home Scheme move to salary sacrifice terms automatically. They go ahead of anyone who hasn't started yet.