VAT
0% VAT on solar panels and batteries explained
What the rule says
GOV.UK VAT Notice 708/6 sets a zero rate for installing certain energy-saving materials, including solar panels, from 1 May 2023 to 31 March 2027. It applies to homes: houses, blocks of flats and other dwellings.
It reaches batteries too. A standalone battery that stores grid power qualifies, and so does a battery retrofitted to solar, both from 1 February 2024. A battery fitted as part of a new solar system counts as part of one zero-rated supply. On 1 April 2027 the notice says installations revert to the reduced rate of 5%.
What it is worth
On a 4.5 kWp system with a 5 kWh battery, priced at £8,500 to £12,500, 5% VAT would add about £400 to £600 (our arithmetic). On a 5 kWh battery fitted alone, priced at £2,750 to £4,750, it would add about £150 to £250. That is a real sum, but it is a nudge, not a reason to rush into a bad design.
A different VAT change, on your bill
Do not mix this up with the rule above. The government has removed VAT from household electricity bills in Great Britain from 1 October 2026 to 31 March 2027. Ofgem's price cap of 26.32p per kWh for 1 October to 31 December 2026 is quoted without VAT for that reason, and our estimates use it.
Both reliefs end on 31 March 2027. We do not assume either is extended. If VAT returns on electricity, each unit you avoid buying costs a little more, which nudges savings up. We have not built that in, because we do not know it will happen.
Who gets the zero rate
The relief is for supplies in residential accommodation. That includes a house, a flat and a block of flats. It is a rate applied to the supply and installation by the installer, so you do not claim it back later. If an invoice shows 20% VAT on a home install before 31 March 2027, ask why.
The same notice names other energy-saving materials, and the rules about them are not our lane. For solar and batteries, the page to read is the GOV.UK notice listed at the foot of this guide.
Timing matters
A survey, a design, scaffold booking and network paperwork all take weeks. The rate depends on when the supply and installation happen, so ask your installer in writing how they treat a job that straddles the date.
A worked case. Say you are weighing a 4.5 kWp system with a 5 kWh battery at the middle of our range. The 5% rate adds a few hundred pounds, as above. Against that, a rushed survey can cost you a worse roof layout for 25 years. Our advice is to get the design right, then book the date, and treat the VAT as a deadline rather than a reason.
Planning something close to the line? Our planning and network guide shows what has to be settled first.
Questions people ask
Will 0% VAT be extended?
We do not know. It is a temporary relief. Plan around 31 March 2027 and treat an extension as a bonus.
Does 0% apply to a battery only?
Yes. Since 1 February 2024 a standalone battery, or one retrofitted to solar, qualifies in a home.
Does it apply to plug-in solar?
A plug-in kit is something you buy, not a system installed for you. Check the VAT shown on your receipt.
Does it cover an EV charger?
The notice covers energy-saving materials such as solar and batteries. Check the VAT on the charger quote separately.
Want numbers for your own house? Try the estimator or ask for a free quote.
Sources
- GOV.UK: VAT Notice 708/6, energy-saving materials
- GOV.UK: temporary zero rate of VAT for domestic electricity
- Ofgem: changes to the energy price cap, 1 October to 31 December 2026
More guides
- What solar and a battery cost for a Faversham house
- Is a home battery worth it?
- What size solar and battery do I need?
- Solar only, battery only, or both?
- Planning permission and network approval in Faversham
- Cheap overnight tariffs and home batteries
- Pairing an EV charger with solar and battery
- Smart Export Guarantee: real rates, October 2026
- Solar by house type in Faversham