Solar panels and home batteries fitted in a UK home carry 0% VAT until 31 March 2027. From 1 April 2027, the rate is due to return to 5%. That is the position in HMRC’s guidance as of October 2026.

The relief can save you hundreds of pounds, so it affects when you buy. However, it should not be the only thing you weigh. This guide explains who qualifies, what it covers, and how to plan your timing without rushing into a bad deal.

What the rule says

HMRC’s VAT Notice 708/6 sets out the relief. It says a zero rate applies to the installation of certain energy-saving materials until 31 March 2027. In Great Britain the zero rate began on 1 April 2022, and in Northern Ireland on 1 May 2023. It also says that from 1 April 2027 these will revert to the reduced rate of 5%.

Solar photovoltaic panels qualify, since the notice names them, with their cabling, control panel and inverter. Batteries for storing electricity from a solar system qualify too. The notice also lists some other items, for example wind turbines and ground source heat pumps, so read the full list if you plan other work.

Because VAT is a UK-wide tax, this rule is the same in England, Scotland, Wales and Northern Ireland. Grants are different, since they vary by nation. Our grants and funding guide covers those.

What counts as installed

The word “installed” matters, because it decides which rate you pay. HMRC says that if you supply energy-saving materials without installing them, the supply is standard-rated. So if you buy panels online and fit them yourself, you pay the standard 20% rate, as set out in the GOV.UK guide to VAT rates.

The relief also covers the home, although not every building. It applies to residential accommodation such as houses and blocks of flats. It does not cover places such as hotels, hospitals or prisons.

For a normal homeowner, the practical point is simple. Use an installer who supplies and fits the system under one contract, because then the installer should charge 0% on the whole job. Our guide to MCS certification explains why you should choose a certified firm in any case.

What it saves you

The saving is easy to estimate, since it is a flat 5%. Take the price before VAT and multiply it by 5%. That is how much more you would pay once the 0% rate ends.

System price Extra cost at 5% VAT
£6,500 £325
£7,500 £375
£10,000 £500
£12,000 £600

These are simple sums on example prices, not quotes. For a view of real prices, see our guide to how much solar panels cost. A larger system or a battery makes the VAT difference bigger. Our post on solar battery cost and sizing shows how much a battery adds to a bill.

Why the date matters

The deadline gives some buyers a reason to act. However, you should not let it rush you. A 5% rise is real, but a poor system or a bad installer costs much more over time.

Installers may get busier as March 2027 nears. Surveys, scaffolding and network approvals take time. So if you want the 0% rate, start comparing quotes well before the end of the year. Our list of questions to ask a solar installer will help you compare firms fairly.

Ask each installer, in writing, which VAT rate they will charge. Also ask what happens if the job slips past 31 March 2027. Contracts differ on who pays any extra VAT, so read that clause before you sign.

VAT on your electricity bill is different

Do not mix this up with the VAT on energy bills. Ofgem’s price cap summary says the government has cut VAT on electricity bills from 5% to zero from 1 October 2026 to 31 March 2027. You can read this in the Ofgem summary of changes to the price cap.

That is a separate relief on what you pay your supplier, so it is still a different thing. It does not change the VAT on the installation. It has the same end date, though, so both changes land together in April 2027.

Does 0% VAT make solar worth it?

Not by itself, because the relief only trims the upfront cost, but the payback still depends on how much power you use and what you earn on exports. Our guide to how many solar panels you need helps you size a system to your use.

The VAT saving is also small while you compare it with the cost of a poor install. A system that fails early costs more than any tax saving. Our post on how long solar panels last shows what to ask about warranties.

Planning your timeline

Work backwards from 31 March 2027. Allow time for each step, because delays are common. First, get three quotes and a site survey. Then pick an installer, sign a contract and agree a start date.

Next comes the physical work. Scaffolding goes up, the panels go on and the inverter is wired in. Your installer then registers the system with your network operator and issues the MCS certificate. If you add a battery, the same visit often covers it.

Finally, you need the paperwork in hand. Keep the invoice that shows the 0% rate, the MCS certificate and the warranties. A buyer or lender may ask for them later. Our guide on planning your installation lists each stage in order.

Common mistakes to avoid

A few errors come up often.

  • Paying a deposit before you have checked the installer.
  • Assuming a quote includes the battery when it does not.
  • Buying kit separately and losing the zero rate.
  • Ignoring the warranty terms because the price looks good.

Take your time over each of these. A short delay costs less than a poor deal.

Other kit that gets the same relief

If you plan more than solar, check the notice. It also lists ground source heat pumps, including preparatory groundworks from 1 February 2024. Solar and a heat pump can work well together, and our post on solar panels and heat pumps covers how.

Is it really free solar?

No, because zero-rated is not the same as free. You still pay for the equipment and labour, just without the 20% tax on top. Some firms advertise “free solar” or “0% deals” and blur the two. Our article on free solar panel schemes shows which schemes are genuine.

If you get stuck, ask the installer to show the VAT line on the quote. It should read 0%, with the notice named as the basis. For wider advice on firms, see our guide to choosing a solar installer. For the money side of a battery, see our batteries and export guide and our costs and savings guide.

Sources

Common questions

Is there VAT on solar panels in the UK?

Not for most homes right now. Installing solar panels and batteries in residential accommodation is zero-rated until 31 March 2027 (from 1 April 2022 in Great Britain and from 1 May 2023 in Northern Ireland). From 1 April 2027 the rate reverts to 5%.

Do solar batteries get 0% VAT?

Yes. Since 1 February 2024, HMRC says batteries installed in homes qualify for the zero rate, including batteries added to existing solar and standalone batteries. The work must include installation.

What if I buy the panels but fit them myself?

Then the zero rate does not apply. HMRC says that if a supplier provides energy-saving materials without installing them, the supply is standard-rated at 20%.

Does 0% VAT apply in Scotland, Wales and Northern Ireland?

VAT is a UK-wide tax, and the HMRC notice does not limit this relief to one nation. Grants and loans differ by nation, but the VAT rate does not.

Will the 0% rate be extended?

We cannot say. As of October 2026 the official end date is 31 March 2027. Check the HMRC notice for changes before you decide.