Home / Guides / 0% VAT on solar and batteries: what it means
Benefits
0% VAT on solar and batteries: what it means
What the relief covers
HMRC's VAT Notice 708/6 sets a zero rate on installing energy-saving materials in a home, solar panels included, for supplies from 1 May 2023 to 31 March 2027. Since 1 February 2024 it also covers batteries for storing electricity and smart diverters. The notice says that from 1 April 2027 the reduced rate of 5% applies.
What it is worth
On a 4.5 kWp system with a 5 kWh battery priced at £8,500 to £12,500, 5% comes to about £400 to £600. That is our arithmetic. to the deadline.
Planning around the date
The relief turns on when the installation is supplied, so ask your installer in writing how the date applies to your job. A quote, survey, scaffold booking and network notice take weeks, which argues for starting early in the winter. But if a battery is only a maybe, check the paybacks first: a deadline is a poor reason to buy something that will not repay you.
A separate change: no VAT on electricity
Ofgem says there is no VAT on household electricity from 1 October 2026 to 31 March 2027. That trims what each unit saved is worth. The 26.32p price cap figure we use already reflects it.
Questions people ask
Does it apply to a battery only?
Yes, when installed in a home, under the 1 February 2024 extension in the same notice.
Is the date likely to be extended?
Nothing we have read says so. HMRC's notice says 5% from 1 April 2027, and we will update this page if that changes.
What if the date slips?
We will update this page. Check the date on the page before you sign.
Want numbers for your own house? Try the estimator or ask for a free quote.
Sources
More guides
- What solar and a battery cost for a Herne Bay house
- Solar only, battery only, or both?
- Is a home battery worth it?
- Smart Export Guarantee: what you are paid
- Planning rules for solar in Herne Bay
- Plug-in solar for flats and terraces
- Cheap overnight tariffs and home batteries
- What size solar and battery do I need?
- An EV charger with solar and a battery