Business Energy for Places of Worship

Yes. Churches and other places of worship, whether registered or excepted charities, qualify for the reduced 5% VAT rate on energy used for charitable activities, rather than the standard 20%. Many are still being charged the full rate without realising, so it’s well worth checking.

If 60% or more of a meter’s energy is used for charitable activities, the whole supply qualifies for 5% VAT. If less than 60% is charitable use, you can still claim the 5% rate on the qualifying portion, with the standard 20% applied to the rest. We help you work out and declare the right split.

Yes. Where you qualify for the reduced VAT rate on charitable use, you’re also exempt from the Climate Change Levy on that energy. A simple declaration to your supplier puts both in place, and we can help you complete it.

Usually, yes. If you’ve been charged the standard rate when you were entitled to the reduced rate, you can claim a rebate from your supplier for the difference, typically going back up to four years. Some parishes have recovered several thousand pounds this way.

Heating, by a long way. Large, high-ceilinged and often poorly insulated buildings are expensive to warm, and space heating accounts for around 70% of the energy used. Lighting and any hall or community facilities make up the rest.

Beyond getting the VAT right, the biggest wins come from heating smarter rather than harder: targeted or zoned heating for occupied areas, good timer and thermostat control, draught-proofing, and warming people rather than the whole space. LED lighting in halls and naves helps too.

Yes. Dioceses, circuits and groups of churches can consolidate their sites onto one supplier, with one bill and shared renewal dates, even where contracts currently end at different times. The combined volume can unlock a better rate and reduces admin for hard-pressed volunteers.

It depends on your current rate, VAT treatment and how the building is used, but between correcting VAT, claiming any rebate and finding a fairer tariff, the savings can be significant. The quickest way to find out is to compare with your postcode or speak to a specialist.