Zero VAT policy 2026

Zero VAT on Solar Panels UK 2026

The UK government's 0% VAT on solar panels, battery storage, heat pumps, wind turbines, and EV chargers came into force in April 2022 and has been extended through 2027. It saves UK homeowners £600–£1,800 per system install compared to pre-2022 pricing.

Funding amount

0% VAT on the full system cost including installation labour. Applies to domestic residential properties across England, Scotland, and Wales.

Eligible if

Residential property (house, flat, bungalow)
Supply and installation of solar PV panels
Battery storage systems installed with or without solar
Air source and ground source heat pumps
Electric vehicle chargers
Wind turbines, micro-CHP, and solar thermal

Not eligible if

Commercial properties (standard 20% VAT applies)
Material-only supply without installation (20% VAT)
Installation services only (20% VAT if separate from equipment supply)
Storage heaters, air conditioning, other non-renewable tech

Step by step

How the application works

Included automatically

Zero VAT is applied automatically by your MCS-certified installer — you don't apply for it. We invoice at 0% VAT for all qualifying domestic installs.

Confirm residential use

We confirm the property is residential at point of survey. Mixed-use properties need separate assessment.

Check if bundled

Battery storage purchased at the same time as solar: 0% VAT on both. Battery purchased separately later: may be 0% or 5% VAT depending on HMRC classification at time of purchase.

Frequently asked

FAQs

How much does 0% VAT save on a solar install?

On a standard 4 kW system costing £8,000: 0% VAT saves £1,333 vs the old 5% rate (now 20% on commercial). On a solar + Tesla Powerwall 3 bundle at £14,500: saving is £2,417 vs 20% VAT. This is a significant real-money saving that only accrues if your installer is MCS-certified and invoices correctly.

Is zero VAT on solar permanent?

Currently confirmed through 2027 by HMRC. The relief was originally introduced in April 2022 as part of the Spring Statement. All indications suggest it will be extended post-2027, but no permanent legislation exists yet. Fitting before 2027 locks in the benefit.

Does zero VAT apply to a battery added to existing solar?

HMRC guidance classes battery storage added to existing solar (AC-coupled retrofit) as 0% VAT. Standalone battery with no solar on-site may be treated differently — we confirm the correct VAT treatment on every quote.

Does it apply in Scotland?

Yes — 0% VAT on residential solar and heat pumps applies across England, Scotland, and Wales. Northern Ireland has a slightly different VAT framework but the same zero-rate applies to qualifying renewable energy.

Check your eligibility

10-minute phone call to confirm. No obligation if you're not eligible. We handle the application end-to-end.

Check Eligibility Call 0800 099 6606