0% VAT on Solar Panels: What It Means and When It Ends

Right now, homeowners in England, Scotland and Wales pay 0% VAT on solar panels, batteries and other qualifying energy-saving materials — a saving that comes straight off the price of your installation. But this relief is currently set to end on 31 March 2027, after which VAT is scheduled to return to 5%. Here’s what it means and why it’s worth acting sooner rather than later.

What is the 0% VAT relief?

Since April 2022, the government reduced VAT on the installation of energy-saving materials — including solar PV panels and battery storage — from 5% to 0% for residential properties. That means on a typical home installation, you’re saving hundreds of pounds compared with what you’d have paid before, and compared with what you may pay after the relief ends.

When does 0% VAT on solar end?

The 0% rate applies until 31 March 2027. From 1 April 2027, VAT on these installations is currently scheduled to revert to 5%. On a £10,000 system, that 5% is an extra £500 — so getting your installation completed while the 0% rate applies keeps more money in your pocket.

Does the 0% rate apply to batteries?

Yes. As of February 2024, the relief was expanded to include standalone battery storage — not just batteries installed alongside solar. So a retrofit battery also currently qualifies for 0% VAT.

Why act now?

• Lock in the 0% VAT saving before the relief ends in March 2027.
• Beat rising energy prices — every year you wait is another year of buying expensive grid electricity.
• Installer demand rises as deadlines approach — booking early means shorter waits.

Note: VAT rules can change and eligibility depends on your circumstances — this is general information, not tax advice. We’ll confirm the current position when we quote.

Make the most of 0% VAT while it lasts. Try our solar savings calculator, or get a free, no-obligation quote from our MCS-certified local team across Dorset, Hampshire and Wiltshire.