Since 2022, installing solar panels and other energy-saving materials in homes has been zero-rated for VAT. From 1 February 2024 the relief was widened to include batteries that store electricity, including power taken from the grid. The 0% rate runs until 31 March 2027, after which it returns to the reduced rate of 5%.
- 0% VAT on qualifying installs until 31 March 2027
- Covers solar panels and home batteries, including grid-charged batteries
- Reverts to 5% VAT from 1 April 2027
What it means in practice
On a typical battery install of around £5,000 to £6,000, 5% VAT would add roughly £250 to £300. On a solar and battery package from £10,995 it would add roughly £550 or more. Installs completed under the 0% rate avoid that.
Plan ahead
Surveys, quotes and, for some solar systems, network operator approval (G99) can take time, so it is worth starting early if you want to install before the deadline.
See home battery storage or solar and battery packages, or book a free survey.
