Is there VAT on solar panels and batteries?

In Great Britain, there's currently no VAT on solar panels or home batteries when they're supplied and installed in your home. HMRC says this 0% rate applies to installations made up to and including 31 March 2027, after which it's due to go back to the 5% reduced rate. Batteries were added from 1 February 2024, including batteries fitted to existing solar panels.

• Installing qualifying energy-saving materials in homes in England, Wales and Scotland has been zero-rated since 1 April 2022 (VAT Act 1994, Schedule 8, Group 23).
• HMRC says the zero rate runs until 31 March 2027, and from 1 April 2027 these installations revert to the reduced rate of 5% (VAT Notice 708/6, section 2.1).
• Solar panels qualify along with their cabling, control panel and inverter (Notice 708/6, section 2.11).
• Batteries for storing electricity were added from 1 February 2024, including batteries retrofitted to existing solar and standalone batteries charged from the grid (SI 2024/24; Notice 708/6, section 2.19).
• Buying the equipment without installation is standard-rated (Notice 708/6, section 2.3). The standard rate is 20% (GOV.UK).
• On 5 June 2026, HM Treasury confirmed in a written answer that the zero rate is temporary until March 2027 and then reverts to 5% (UK Parliament, written question 3655).

What does the 0% VAT rate cover?

HMRC's guidance, VAT Notice 708/6: energy-saving materials and heating equipment, lists the "energy-saving materials" that qualify. For a solar and battery installation, the relevant ones are:

• Solar panels, which HMRC says covers photovoltaic panels together with their cabling, control panel and inverter (section 2.11).
• Batteries for storing electricity, from 1 February 2024 (section 2.19).
• Smart diverters, also from 1 February 2024 (section 2.20).

The relief covers the installation service and the materials supplied by the person who installs them. HMRC defines installation as permanently fixing the materials in place.

It applies to residential accommodation. HMRC's list includes houses, flats and self-catering holiday lets, among others. From 1 February 2024 it also covers buildings used solely for relevant charitable purposes, such as village halls. Hotels, inns, hospitals and prisons are excluded.

Do batteries qualify on their own?

Yes. The Value Added Tax (Installation of Energy-Saving Materials) Order 2024 came into force on 1 February 2024. It added electrical storage batteries intended solely for storing electricity that was either supplied to the building or generated by a microgeneration system such as solar panels. HMRC's Notice 708/6 says this includes:

• a battery retrofitted to an existing solar, wind or water turbine system;
• a battery fitted as part of a new solar installation (normally treated as part of that zero-rated supply);
• a standalone battery that stores electricity from the grid;
• a battery that stores both solar and grid electricity.

HMRC's policy paper describes this as an extension of the relief. So if you looked into adding a battery on its own before February 2024, the VAT position may now be different. You can read more on our battery storage page.

What isn't covered?

• Equipment bought without installation. HMRC says supplying energy-saving materials without installing them is standard-rated, including when you buy from a retailer. If you buy the parts yourself and pay someone else to fit them, the installation service can still be zero-rated.
• Products not on HMRC's list. The notice lists specific materials. Other products are standard-rated unless another relief applies. For example, HMRC names double glazing and fridge-freezers as standard-rated. EV chargers aren't on the list of energy-saving materials, so ask your installer how VAT applies to a charger on your quote. See our EV chargers page.
• Bigger building projects. HMRC's examples show that where energy-saving materials are fitted as part of wider construction work, such as an extension under one contract, the whole job can be one standard-rated supply. Section 2.5 explains how to tell whether work is one supply or several.
• Non-residential buildings, such as offices, shops and hotels.

What happens on 1 April 2027?

Under the law as it stands, the zero rate ends on 31 March 2027. The 2024 Order amended both the zero-rate list (Schedule 8, Group 23) and the reduced-rate list (Schedule 7A, Group 2) of the VAT Act 1994. From 1 April 2027 the same installations fall under the 5% reduced rate, not the 20% standard rate.

As of 12 October 2026, we haven't found any announcement extending the zero rate. In a written answer on 5 June 2026, HM Treasury repeated that the zero rate is temporary until March 2027 and then reverts to 5%. It didn't say whether it would be extended. Tax rules can change at a Budget, so check HMRC's notice for the latest position.

What if my installation is close to the deadline?

The rate depends on when the supply is made for VAT purposes, known as the "tax point". This isn't always the installation date. HMRC's guidance on deposits and advance payments says the tax point for an advance payment is either the date the VAT invoice is issued or the date the payment is received, whichever comes first. HMRC also has special rules for when a VAT rate changes. If your installation will fall around 31 March 2027, ask your installer how VAT will be applied to your deposit and final invoice.

Does this apply in Northern Ireland?

This guide covers Great Britain. Northern Ireland has its own dates under the same notice, and we only install in England and Wales.

How will VAT show on my quote?

For a qualifying installation in your home, the solar panels, inverter, battery and their installation should show VAT at 0%. If your quote includes items that don't qualify, they may carry VAT at a different rate. Ask your installer to explain any line that isn't at 0%.

If you'd like a quote that sets this out clearly, you can visit one of our showrooms or read our FAQs. There's nothing to sign on the day.