0% VAT on Solar & Batteries (2025–2027): What UK Homeowners Need to know



The government’s zero-rate VAT on energy-saving materials is one of the simplest ways to reduce the upfront cost of going solar. In Great Britain, solar PV and (since 1 February 2024) stand-alone battery storage qualify for 0% VAT when supplied and installed at domestic premises and the measure currently runs until 31 March 2027. If you’ve been waiting for the right moment to invest, this policy materially improves the numbers.

The policy in a nutshel

What’s covered: The supply and installation solar panels uk cost of qualifying energy-saving materials, including solar PV and electrical battery storage. Installers apply the 0% rate directly on your invoice in Great Britain.

Timing: The zero rate is currently scheduled to end on 31 March 2027, after which relevant supplies would revert to the reduced rate unless policy changes again.

Northern Ireland: Different rules apply due to VAT alignment with EU frameworks; always check the latest local guidance before you commit.

A number of professional updates in early 2024 highlighted that stand-alone batteries were brought into scope from 1 February 2024 helpful if you already have panels and want to retrofit storage. (Industry tax briefings documented the change; installers like us have been applying it since.)

Quick money examples (how the saving lands on your quote)

PV only example: A £7,500 supply-and-install would have been £7,875 at 5% VAT; under the 0% rate it remains £7,500 saving £375 without any extra forms.

Battery retrofit example: A £4,800 battery install would have been £5,040 at 5%; under 0% VAT it stays £4,800 saving £240. (Figures illustrative; your quote will detail the exact rate and total)



Who qualifies and what you need to do

The relief is aimed at domestic properties in Great Britain; most owner-occupiers qualify. Your installer applies the rate on the invoice there’s no separate grant application.

If you’re a landlord or fitting at a second home, the domestic premises rule still typically applies, but we’ll confirm during survey.

Repairs vs new solar panles installations london: the notice focuses on supply and installation of qualifying materials. Some repair or replacement works may be eligible depending on scope ask us to check line items for you.

Why timing matters (and how to plan)

Because the 0% window has an end date, it can influence whether you go for PV only now or include a battery while the relief applies. solar and battery storage can also be retrofitted later under 0% (to 31 March 2027), which gives flexibility for budgeting.

Common questions, answered

Is this a grant?

No it’s a tax rate applied by the installer on qualifying supplies. The final price on your quote simply excludes VAT for those lines.

Does 0% VAT affect SEG payments?

No SEG is a separate, supplier-led export payment scheme. You’ll still need to sign up with a supplier and have export metering enabled.

Will 0% VAT definitely end in March 2027?

That’s the current policy position. Governments can extend or revise policies, but plan on today’s published end-date and treat any extension as a bonus.

Savings come from using your own generation in real time and selling any surplus via the Smart Export Guarantee (SEG). SEG is a supplier-led scheme: each licensee sets its export rate and terms, but the rate must be above zero and payments are based on metered export.

To estimate your savings:

Pull your annual kWh usage from bills.

Use the Energy Saving Trust are solar panels worth it uk calculator to model a system size for your postcode and roof orientation; adjust self-consumption assumptions if you’re often at home in the day.

Check SEG rates with suppliers or comparison round-ups; note that some top rates require you to also buy your import electricity from them.

Consider a battery if evenings are your peak usage, you plan to use time-of-use tariffs, or you want resilience for price spikes. Battery costs and benefits are covered later.

How Evergreen Power UK makes it easy

We’ll show a line-by-line breakdown so you can see the saving.

If you’re debating PV now vs PV Battery, we’ll price both and explain the trade-offs.

We’ll also handle SEG paperwork guidance post-install so your export income starts smoothly.


Location: United Kingdom

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