VAT
0% VAT on solar panels and batteries explained
What the rule says
HMRC's VAT Notice 708/6 covers supplies of installations of energy-saving materials made between 1 May 2023 and 31 March 2027. From 1 April 2027 these revert to the reduced rate of 5%. The list of materials was extended from 1 February 2024 to include electrical battery storage.
What it means in pounds
On a £8,500 to £12,500 system, 5% VAT would add about £400 to £600 (our arithmetic). That is roughly £1 for every £20.
Not the same as VAT on your electricity
Separately, HMRC says a temporary zero rate applies to domestic electricity in Great Britain from 1 October 2026 to 31 March 2027. That is about the power you buy, not the installation.
Who gets it
The relief applies to residential accommodation and relevant charitable buildings, where an installer supplies and fits the materials. Your quote should show 0% VAT clearly.
Timing matters
Surveys, quotes and network approval take weeks, so leave time. Ask your installer how they treat jobs that cross the deadline.
Questions people ask
Will 0% VAT be extended?
We do not know. It is a temporary measure. Plan for 31 March 2027 and treat any extension as a bonus.
Does 0% apply to a battery only?
HMRC's notice lists electrical battery storage among the materials, and our reading is that a battery installed on its own qualifies. Check the VAT line on your quote.
Does it apply to plug-in solar?
That kit is bought by you rather than installed as a system. Check the VAT shown on your receipt.
Want numbers for your own home? Try the estimator or ask for a free quote.
Sources
- GOV.UK: VAT Notice 708/6, energy-saving materials
- HMRC: Revenue and Customs Brief 10 (2026), zero rate of VAT for domestic electricity
More guides
- What solar and a battery cost for a Broadstairs house
- Current UK solar and battery benefits (October 2026)
- Smart Export Guarantee rates explained
- Is a home battery worth it with the SEG?
- Plug-in solar for Broadstairs flats and rented homes
- What size solar battery do I need?
- Solar only, battery only, or both?
- Planning permission and network approval in Broadstairs
- Solar panels near the sea: what to ask for
- Cheap overnight tariffs and a battery only
- Pairing an EV charger with solar and battery