0% VAT on solar & battery installations ends March 2027 (here’s what to know)
Power your home with clean solar energy and lower your bills year-round.
Right now, many home solar panel and battery installations qualify for 0% VAT. That reduced cost is currently scheduled to run until 31 March 2027. From 1 April 2027, qualifying installations are set to revert to the reduced 5% VAT rate.
If you’ve been thinking about solar, battery storage, or both, this is one of the clearest “sooner is better” moments — because it’s a straightforward saving that applies at the point of quote and invoice.
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What is the 0% VAT relief?
It’s a temporary zero rate of VAT on the supply and installation of certain energy-saving measures in eligible buildings (including solar PV). So instead of paying VAT on top of the system cost, the VAT rate is currently 0% for qualifying installs.
With 0% VAT on solar panels and battery installations ending in March 2027, now is the time to act and maximise your savings before the rate returns to 20%. Here’s what you need to know.
What’s included?
For most customers, the practical takeaway is:
Solar PV supply + installation can qualify for 0% VAT (as an “energy-saving material” installation).
Electrical battery storage is also within scope under the relief rules (expanded reforms took effect from 1 February 2024).
(Eligibility depends on the property type and how the work is supplied/installed — we’ll confirm this as part of your quote.)
Large apartment complex with extensive rooftop solar panels, viewed from above with a car park in the foreground.
Who qualifies?
This relief is aimed at residential accommodation and certain charitable buildings. Standard commercial/business installs generally don’t use this specific VAT relief in the same way (businesses have other routes to improve the numbers).
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What changes in 2027?
Up to 31 March 2027: 0% VAT applies to qualifying installations.
From 1 April 2027: the VAT treatment is set to revert to the reduced rate (5%) for qualifying installations.
A simple example (with the correct VAT rates)
If your solar + battery installation is £10,000 (system + install):
Now (0% VAT): you pay £10,000
From April 2027 (5% VAT): you’d pay £10,500
That’s £500 difference per £10,000 of qualifying work — with no extra forms or claims needed.
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Do I need to “apply” for it?
No. If your installation qualifies, the VAT rate is applied automatically on the quote and invoice.
Should you act now?
If you already want solar in 2026, moving sooner means:
you start saving on bills earlier, and
you keep the 0% VAT advantage while it’s available, rather than paying 5% later.
With 0% VAT on solar panels and battery installations ending in March 2027, now is the time to act and maximise your savings before the rate returns to 20%.
Want a fixed quote?
We’ll check roof suitability, system size, and whether battery storage makes sense for your usage — then give you a clear, fixed-price quote with the correct VAT treatment.
Call 01752 916 013 or click Get a quote to start.
