The BRC said that reducing the amount of tax on energy efficient appliances could cut the cost of people's energy bills as well as helping the government tackle the issue of climate change.
Stephen Robertson, BRC director general, said: "The government's working against its own objectives when it sets targets for reducing carbon emissions while charging full VAT on the efficient products that will move us towards those targets.
"Retailers are already doing their bit to cut carbon but homes are responsible for 27 per cent of the nation's emissions."
Until the government drops VAT on green technology, it appears that the best way to slash energy bills is by comparing prices online and switching provider, reports the Daily Mail.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.