If you are installing (whether supplying or not) ESM items, these should be zero rated (not reduced rate 5%). This applies to the whole invoice (installation labour and goods if goods are included). Since 1 April 2022 there is no longer a social benefits test or the “60% test”.
If you are supplying but not installing (supply only) ESM items, they would be standard rate as the ESM rules only to apply to installations.
If you are making one supply of, say a “central heating system” that is not on the ESM list, the standard rate applies, even if some of the components would be on the ESM list.
The ESM list is:
- Insulation for walls, floors, ceilings, roofs, or lofts, or for water tanks, pipes, or other plumbing fittings.
- Draught stripping for windows and doors.
- Central heating system controls (including thermostatic radiator valves).
- Hot water system controls.
- Solar panels.
- Wind turbines.
- Water turbines.
- Ground source heat pumps.
- Air source heat pumps.
- Micro combined heat and power units.
- Boilers designed to be fuelled solely by wood, straw, or similar vegetal matter.