Installing solar panels and batteries in a home is zero-rated for VAT until 31 March 2027. From 1 April 2027 the rate is due to rise to 5%, unless the government extends it.
The rule today
Installing energy-saving materials in a home is zero-rated for VAT. That includes solar panels and, since 1 February 2024, batteries. The 0% rate covers the equipment and the installation, but only when the same business supplies and installs it. Buying panels on their own, without installation, is charged at the standard 20%.
The dates
- Great Britain: 0% from 1 April 2022 to 31 March 2027.
- Northern Ireland: 0% from 1 May 2023 to 31 March 2027.
- From 1 April 2027: the rate is due to return to 5%.
What it covers
- Solar panels installed on or in a home
- Batteries, whether fitted with panels, added later, or installed on their own
- The installation work, when supplied with the equipment
Will it be extended?
No extension has been announced. A cross-party motion has asked for it to be extended, so it is worth watching the next Budget.
What it means for you
On a typical £7,600 system, 5% VAT would add about £380. Installations can take a few weeks to arrange, so if you are thinking about solar, it is worth getting quotes well before the deadline.
Don’t mix it up with the electricity bill change
Separately, there is no VAT on household electricity bills from 1 October 2026 to 31 March 2027. That is a different measure and doesn’t affect the cost of installing solar.
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Sources
- Energy Saving Trust: Solar panels (updated 1 Oct 2026)
- HMRC: VAT on energy-saving materials (Notice 708/6) (updated 31 Jan 2024)
- GOV.UK: Extension of VAT energy-saving materials relief (11 Jan 2024)
- RECC: Government extends VAT relief on energy-saving materials (Dec 2023)
- UK Parliament: Early Day Motion 509 (Jul 2026)
- Ofgem: Price cap October to December 2026 (26 Aug 2026)