VAT on Solar Panels: The 0% Rule Explained
Is there VAT on solar panels? Good news — it’s 0% in the UK until 31 March 2027. Here’s how the zero-rate works, exactly what it covers, and the installer VAT traps to watch out for.
The short answer
No — there’s currently 0% VAT on solar panels installed at a UK home. Since April 2022, qualifying domestic solar installations have been zero-rated for VAT — you pay no VAT at all. It’s not a discount or a rebate you claim: there’s no application and no means test, the 0% rate is simply applied automatically by your installer, so you should never see VAT on a qualifying residential quote. It’s generous in scope too, covering the whole supply-and-install package: panels, inverter, battery, mounting, scaffolding, cables and all the labour.
Two things to know. Batteries qualify — including standalone/retrofit batteries since February 2024, so you can add storage later without losing the relief. And the crucial date: the 0% rate ends 31 March 2027, then reverts to 5% (not 20%). Many websites wrongly say 31 January 2027 — that’s incorrect; HMRC’s actual cut-off (VAT Notice 708/6) is 31 March. On a typical £8,000 install, the 0% rate saves ~£400. Full detail — what qualifies, charities, the exceptions and the installer traps — below.
What this guide covers
Is there VAT on solar panels?
No — solar panels are zero-rated (0% VAT) for UK homes. This is one of the simplest and most valuable savings in solar, and it applies to virtually every ordinary homeowner. The government removed VAT on domestic solar in Great Britain in April 2022 (extended to Northern Ireland in May 2023) as part of its energy and net-zero policy. Because VAT is a UK-wide tax, the position is the same in England, Scotland, Wales and Northern Ireland — there’s no regional difference. Compared to the old 5% rate, 0% saves you around £400 on a typical £8,000 system; compared to the standard 20% rate, far more. And unlike grants, there’s nothing to apply for — it’s built into your price automatically. Let’s look at how it works.
How the 0% rate works
The mechanics are refreshingly simple. This is a zero rate, not a VAT exemption or a rebate — the distinction matters for the installer’s accounting but not for you. In practice: your installer applies 0% VAT directly when they quote and invoice you, so the price you’re quoted already has no VAT in it. There is no application process, no form, no means test, and nothing to claim back — you don’t need to do anything. The only requirement on your side is to use a VAT-registered installer (which any established firm is) who both supplies and installs the system as a single job. If you ever see a residential solar quote with VAT added, that’s a red flag to query immediately. It’s worth keeping your invoice showing the 0% rate, just as a record. That’s genuinely all there is to it — the saving is passed to you at the point of purchase with zero admin.
What the 0% rate covers
The zero-rate covers the whole installed package — not just the panels
A common misunderstanding is that only the panels themselves are zero-rated. In fact, the relief is much broader: when supplied and installed as a single contract, the 0% rate covers the entire package, including:
✓ The solar panels
✓ The inverter
✓ The battery storage (including standalone/retrofit — see below)
✓ The mounting hardware and rails
✓ The scaffolding
✓ The cables and electrical components
✓ All the installation labour
✓ Even an EV charger, when fitted alongside the solar
In other words, the whole job is zero-rated, not just the hardware. This is why the 0% rate is such a valuable saving — it applies to your total installed cost. The one condition is that it must be a genuine supply-and-install contract from one company (see the exceptions).
Do solar batteries qualify for 0% VAT?
Yes — and this now includes standalone batteries, which is genuinely useful. A battery installed as part of a solar system has always been covered by the 0% package rate. But since a rule change on 1 February 2024, standalone and retrofit batteries also qualify — meaning a battery added to an existing solar system, or even installed on its own, gets the 0% rate too. (Before this, standalone batteries were charged 20%.) The practical benefit: you can phase your project — install solar now and add a battery later, or add storage to a system you already own — without losing the VAT relief. This makes it far more affordable to add storage down the line to boost your solar self-consumption. As with panels, it’s applied automatically and runs to 31 March 2027. One thing to watch: some installers have wrongly kept charging VAT on battery-only retrofits — if you’re quoted 20% on a standalone battery, query it, because it should be zero-rated. (See our solar & battery packages guide.)
When does the 0% VAT end? (The date many sites get wrong)
It’s 31 March 2027 — not 31 January, whatever some sites claim
Here’s a point where accuracy matters and many sources get it wrong. The 0% VAT rate is scheduled to end on 31 March 2027, reverting to 5% (not the full 20%) from 1 April 2027. A surprising number of installer and comparison websites state the deadline as 31 January 2027 — that is incorrect. HMRC’s own guidance (VAT Notice 708/6) sets the cut-off at the end of the 2026/27 financial year: 31 March 2027. So if you’re budgeting around this, you have until end of March 2027, not January.
Two reasons not to panic, though: (1) the reversion is only to 5%, not 20% — so missing it costs ~£400 on an £8,000 install, meaningful but not catastrophic; and (2) the government has signalled it may make the 0% rate permanent (indicated around the Autumn Statement 2024), and with cross-party support for domestic renewables, a reversion isn’t certain — though as of 2026 no permanent extension has been legislated. Our honest advice: plan around the published 31 March 2027 date, treat any extension as a bonus, and if you’re considering solar there’s a clear incentive to install before then.
The exceptions
The 0% rate is broad, but a few exceptions apply (none affects a standard homeowner):
- Commercial buildings are excluded — a business installing solar on its premises pays 20% (though buildings used solely for charity, like village halls, do qualify — see below). This is relevant for schools and commercial premises.
- Supply-and-install must be one company — if you buy panels from one firm and have a different firm fit them, the panels are charged 20%. (This is why supply-and-install is standard.)
- Unrelated work is charged separately — general roof repairs, re-roofing or building work that isn’t part of the solar install is standard-rated and shouldn’t appear on the same zero-rated quote. Get such work quoted separately.
- Grey areas need checking — mixed-use buildings, homes with significant business use, landlord-owned properties, holiday lets and blocks of flats can be more complex.
Charities: the 0% rate does apply to buildings used solely for charitable purposes (village halls, community and recreational facilities), which is a useful point for community solar projects. For a standard owner-occupied home, none of these exceptions apply — you simply get the 0% rate.
Installer VAT traps to watch out for
Because the 0% rule is sometimes misunderstood (or misused), watch for these when comparing quotes:
- “Discounting” the VAT. Some sales scripts quote a price with 20% VAT, then offer a “discount” that’s really just removing VAT they should never have charged. The price should simply be zero-rated from the start.
- VAT on a battery-only retrofit. Standalone batteries are 0% (since Feb 2024) — if you’re charged 20%, it’s wrong.
- “Design fee” or “survey fee” at 20%. These are part of the install and should be zero-rated, not billed separately at standard VAT.
- Bundled roof repairs at 0%. Conversely, genuinely unrelated roofing shouldn’t be hidden inside the zero-rated solar quote — that’s incorrect the other way, and get it quoted separately and legitimately.
The simplest protection: use a reputable, VAT-registered MCS-certified installer, and check your quote shows 0% VAT on the qualifying solar and battery work. If anything looks off, ask them to explain it against HMRC VAT Notice 708/6.
Frequently asked questions
Is there VAT on solar panels in the UK?
No — domestic solar is zero-rated (0% VAT) across the UK, since April 2022 (May 2023 in NI). There’s no application or means test; your installer applies it automatically, so you see no VAT on a qualifying residential quote. It covers the whole supply-and-install package. Saves ~£400 on a typical £8,000 system vs the old 5% rate.
When does the 0% VAT on solar panels end?
31 March 2027, then it reverts to 5% (not 20%). Many sites wrongly say 31 January 2027 — that’s incorrect; HMRC’s VAT Notice 708/6 sets it at 31 March. The government has signalled it may make 0% permanent, but that’s not yet legislated — so plan around March 2027 and treat any extension as a bonus.
Do solar batteries qualify for 0% VAT?
Yes — batteries fitted with solar are covered, and since 1 February 2024 standalone/retrofit batteries qualify too (a battery added to an existing system, or on its own). So you can phase your project and add storage later without losing the relief. If quoted 20% on a battery-only retrofit, query it — it should be 0%.
What does the 0% VAT cover?
The whole installed package (as a single supply-and-install contract): panels, inverter, battery, mounting, scaffolding, cables and all labour — even an EV charger fitted alongside. Not just the panels. That’s why it’s such a valuable saving — it applies to your total installed cost, not only the hardware.
Are there exceptions to the 0% VAT?
Yes: commercial buildings are excluded (20%), though solely-charitable buildings (village halls) qualify; buying from one company and fitting via another loses the relief; and unrelated roof/building work is standard-rated and shouldn’t be on the same quote. Mixed-use, landlord, holiday-let and flat situations need checking. Standard owner-occupied homes just get 0%.
Do I have to claim the 0% VAT back?
No — there’s nothing to claim. It’s a zero rate applied automatically by your VAT-registered installer at the point of quoting and invoicing, so the price already excludes VAT. No forms, no application, no means test. Just check your quote shows 0% VAT on the solar and battery work, and keep the invoice as a record.
The bottom line
VAT on solar panels is one of the simplest wins in the whole solar decision: there isn’t any — it’s 0%. Since 2022, qualifying domestic solar (and, since 2024, standalone batteries) has been zero-rated across the UK, applied automatically by your installer with nothing to claim, and covering the entire installed package — panels, inverter, battery, scaffolding and labour. On a typical £8,000 system, that’s around £400 saved versus even the reduced 5% rate. The key things to remember: batteries qualify (so you can add storage later), and the rate ends 31 March 2027 — not 31 January, whatever some sites claim — reverting to 5%, not 20%.
So while there may be a permanent extension, the sensible plan is to lock in the full 0% saving by installing before March 2027. Just make sure you use a reputable VAT-registered MCS-certified installer and that your quote correctly shows 0% VAT on the solar and battery work. A couple of free, no-obligation quotes from MCS-certified installers will come with the zero VAT already built into the price — so you can see your true, VAT-free cost and take advantage of the relief while it’s here. (See also our solar panel cost and solar grants guides for the full savings picture.)
Important
Going Solar UK is an introduction service, not an installer or tax adviser. This guide gives general 2026 UK information on VAT on solar panels for research: VAT rules are set by HMRC (see VAT Notice 708/6), can change, and the 0% rate is scheduled to end on 31 March 2027 (reverting to 5%) unless extended – the figures and dates here are for general guidance, not tax advice. Individual circumstances (mixed-use, landlord, commercial, charitable and other cases) can affect VAT treatment. Always confirm the VAT position with your installer or a tax adviser, and check current HMRC guidance, before relying on it.
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