0% VAT on Solar Panels and Batteries Ends 31 March 2027

Installing solar panels or a home battery is free of VAT until 31 March 2027. From 1 April 2027 the same work is charged at the reduced rate of 5%. The Budget on 28 October 2026 did not extend the zero rate, so unless the government changes course, that is the deadline.

The change is real, but it is not large, and it is not a reason to buy the wrong system in a hurry. This guide explains what qualifies, what doesn’t, and how to plan so the timing works for you.

Key points

• The zero rate covers installing solar panels and batteries in homes, including flats and rented property.

• It covers a battery added to existing solar panels, and a standalone battery charged from the grid.

• It applies to installation by a business. Buying kit on its own to fit yourself is charged at the standard rate.

• From 1 April 2027 the rate becomes 5%.

• What decides the rate is when the work counts as supplied for VAT, which depends on when it is done, invoiced and paid. If your job could run past 31 March, ask your installer how VAT will be charged.

• Businesses aren’t affected. Solar on commercial buildings has never had the zero rate.

What changes on 1 April 2027

Since 1 April 2022, installing energy-saving materials in homes in Great Britain has been zero-rated for VAT. Northern Ireland joined on 1 May 2023. Batteries were added on 1 February 2024.

The zero rate was always temporary. HMRC’s guidance says installations will revert to the reduced rate of VAT of 5% from 1 April 2027, and the Budget left that date unchanged.

Before 2022, the 5% rate only applied if certain conditions were met, otherwise the full rate was charged. Those conditions were removed for Great Britain in 2022, so the expected position from April 2027 is a straightforward 5% on qualifying installations.

What qualifies

The relief covers the service of installing qualifying energy-saving materials in residential accommodation, and the materials when the installer supplies them as part of that job.

Solar panels. HMRC’s definition of solar panels includes the photovoltaic panels with their cabling, control equipment and inverter, installed in or on the site of a building.

Batteries. Three situations are covered:

• a battery installed at the same time as new solar panels

• a battery retrofitted to solar panels you already have

• a standalone battery charging from the grid, with no solar at all

Homes. Houses, flats and other dwellings qualify, as does self-catering holiday accommodation. The relief follows the use of the building, so landlords installing solar or a battery on a rented home are covered too. Hotels and similar establishments are not.

If you’re weighing up a battery for an existing system, our guide to adding a battery to existing solar panels explains the options.

What doesn’t qualify

Kit bought on its own. If you buy panels or a battery from a retailer and fit them yourself, or have someone else fit them separately, the goods are charged at the standard rate. The relief applies to installation.

Things not on HMRC’s list. Only listed energy-saving materials qualify. An EV charger isn’t on the list, so an EV charger fitted at the same time as your solar is normally charged at the standard rate. Roofing work that isn’t part of the solar installation itself is treated the same way.

Business premises. Offices, shops, warehouses and other commercial buildings are charged at the standard rate. VAT-registered businesses can usually reclaim it in the normal way, so the April deadline makes little difference to them. Our guide to commercial solar grid connections covers what does matter for business projects.

New builds. New homes are covered by separate VAT rules for construction. Developers and architects should take advice for their own project.

Work on an existing system. Adding a battery to existing solar is covered. For other work, such as replacing an inverter or adding more panels, HMRC’s notice doesn’t spell out the treatment. Your installer should confirm the VAT position in writing in your quote.

Which date counts

This is the part to check carefully if your installation is planned for late March or into April.

VAT is charged at the rate in force at the time the work is treated as supplied, known as the tax point. For an installation that is usually when the work is completed, but an invoice or a payment made earlier, such as a deposit, can create an earlier tax point for the amount it covers. Where work straddles a change of rate, there are rules that let the supplier treat the parts done before and after the change differently.

We can’t give tax advice for an individual job, and the details depend on how the work is invoiced and paid. What we’d suggest:

• If your installation could finish after 31 March 2027, ask your installer in writing how VAT will be charged on the deposit, any stage payments and the final invoice.

• Make sure your quote shows the VAT rate it assumes.

• If you need certainty on a complex case, HMRC or an accountant can confirm.

How long an installation takes to arrange

A solar installation isn’t a same-week purchase, and several steps sit between first contact and switch-on.

1. Survey. We check the roof, the electrics, where a battery could go and how you use electricity. Our guide to what happens at a solar survey explains what we look at.

2. Design and quotation. The system is sized for your roof and usage and you receive a written quote.

3. Grid connection. Smaller systems are notified to the network operator after installation. Larger systems, and many systems with a battery, need approval from the network operator before they are switched on. Our G98 and G99 guide explains which applies.

4. Planning checks. Most London homes don’t need planning permission for solar, but conservation areas, Article 4 directions and listed buildings can change that. See our guide to planning permission for solar in London.

5. Scaffolding. If the scaffold has to go on the pavement, the council has to license it, which adds time on many London streets.

6. Installation and commissioning. Most domestic jobs are installed in a few days once everything is in place.

Our step-by-step installation guide covers each stage in more detail.

None of these steps is unusual, but together they mean a project started in March has much less room for delay than one started now. If you want the zero rate, plan to have the survey done well before the end of February.

Should you hurry?

Only if the system is right for you anyway.

A 5% difference is worth planning around. It isn’t worth choosing a bigger battery than you need, accepting a poor roof position, or skipping a proper survey to beat a date. The system you install now will be on your roof for decades, and getting the design right matters far more over that time than the VAT rate on the day.

If you are already planning solar or a battery in the next year or so, it makes sense to get a survey and quotation now, so you can decide with all the facts in front of you while the zero rate still applies. If a battery is the question, our guide to whether solar batteries are worth it is a good place to start.

Frequently asked questions

Is VAT charged on solar panels in 2026?

Not on an installation in a home. Installing solar panels and batteries in residential accommodation is zero-rated until 31 March 2027.

What will VAT on solar panels be from April 2027?

5%, the reduced rate, for installations in homes. Commercial installations stay at the standard rate.

Does the 0% rate apply to batteries?

Yes, when they are installed in a home: with new solar, retrofitted to existing solar, or as a standalone battery charging from the grid.

Does it apply if I buy panels and fit them myself?

No. The relief covers installation. Goods bought on their own are charged at the standard rate.

Does a deposit paid before 31 March lock in 0%?

Not automatically for the whole job. A payment can fix the rate for the amount it covers, but the rest depends on when the work is completed and invoiced. Ask your installer to confirm how they will treat your job.

Could the government extend it?

It could, but the Budget on 28 October 2026 did not. We will update this page if anything changes.

Do landlords get the zero rate?

Yes. The relief applies to residential accommodation, including rented homes.

Request a solar and battery quotation. We’ll survey your home, design a system around your roof and usage, and show the VAT position clearly in your quote.