Buying solar panels or a battery for your home is currently VAT-free. That makes a real difference to the price of a system, so it's worth understanding how it works and how long it's set to last.
What the zero rate covers
Since April 2022, energy-saving materials installed in homes, including solar panels, have been zero-rated for VAT. Since February 2024, this also covers batteries, including batteries added to an existing solar system.
- Solar panels installed on your home
- Battery storage, whether fitted with panels or added later
- The installation work that comes with them
How much does it save?
Before the change, most home installations had 5% VAT. On a system costing £8,000 before VAT, the zero rate saves about £400. On a larger solar and battery system, the saving is bigger.
How long will it last?
The zero rate is set to run until 31 March 2027. After that, the plan is for it to return to 5%. If you're thinking about solar, it's worth allowing time for the survey, any grid approval and installation before that date.
Checking your quote
Your quote should show the VAT treatment clearly. With Solar Haven Energy, the prices in our quotes already take the zero rate into account.