Solar installations in Great Britain carry 0% VAT until 31 March 2027 under current HMRC rules — worth £1,000–£1,900 on a typical system. After that date, the reduced 5% rate applies unless Government extends. Here’s exactly what qualifies, including the battery rules everyone gets wrong.
The zero rate applies to the supply and installation of qualifying energy-saving materials in residential accommodation: solar panels, insulation, heat pumps, heating controls and — since February 2024 — battery storage in qualifying installations. It covers the whole installed job (materials + labour) when one contractor supplies both. Buying panels yourself to DIY-fit does not get the relief on the goods alone.
Batteries installed with solar: 0% as part of the qualifying installation. Batteries retrofitted to an existing solar system: also within the zero rate under the 2024 expansion. Genuinely standalone batteries with no solar connection sit on less certain ground — get the VAT treatment stated in writing on any quote, because 20% vs 0% moves a typical install by £800–£1,200.
On a £7,000 solar+battery package, 0% versus the old 20% saves ~£1,400; even versus the post-March-2027 reduced rate of 5%, today’s installs save several hundred pounds. Under current legislation the zero rate expires 31 March 2027, reverting to 5% — Government could extend, but planning on today’s rules means installing before that date locks the full saving. Run your numbers in our payback calculator.
VAT relief stacks with everything: WH:LG-funded installs, BUS heat pumps and ECO4 solar all benefit, and self-funders get it automatically on the invoice — no application, no claim form. If an installer quotes VAT on a qualifying residential solar job before April 2027, question the quote.
Facts checked 21 August 2026. We link to official sources and show when facts were last verified. If a scheme changes, we update the page.
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