VAT on Solar and Battery Storage
All solar and energy storage installations, including maintenance to existing sites, should be subject to 0% VAT. This should include residential
This will help to make it more affordable for the average household to invest in a battery storage system and utilise their solar panels more efficiently. The change in VAT on solar batteries occurred on February 1, 2024. Any solar battery now purchased is under the new VAT rate and will be significantly cheaper.
VAT on a range of domestic energy efficiency and renewable energy installations, including solar, is now 0% in Great Britain. This is a reduction from the previous rate of between 5% and 20% Eligible installations are those included on the Government's list of Energy Saving Measures (ESMs).
Batteries Batteries also qualify for 0% VAT in Great Britain if they are supplied as part of an installation with a qualifying material – in other words, a solar system. However, because batteries are not included on the list of ESMs itself, they do not qualify if installed as a standalone product.
Solar Energy UK recommendations to support the uptake of residential solar and energy storage All solar and energy storage installations, including maintenance to existing sites, should be subject to 0% VAT. This should include residential energy storage when installed as a standalone measure.
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