18 September 2026
0% VAT on solar and batteries ends on 31 March 2027: what it means for your quote
0% VAT on home solar panels and batteries ends on 31 March 2027, and 5% applies from 1 April. What is covered, what is not, and what it means for you.
Solar panels and home batteries installed in a home in Great Britain carry 0% VAT until 31 March 2027. From 1 April 2027 the rate is due to go back to 5%. If you are weighing up solar panels for your home or home battery storage, that date is worth knowing now, because it changes the bottom line of your quote.
How long is left?
At the time of writing, in September 2026, about six months remain. That sounds like plenty. But a job is more than an install day. There is a survey, a design, a quote for you to think over and a date in the diary. Some systems also need paperwork with the local network operator. None of that is slow, but it all takes time, and it is easier done without a deadline pressing.
What is zero-rated?
HMRC’s guidance on energy-saving materials, VAT Notice 708/6, sets out the list. The items homeowners ask us about most are:
- solar panels
- batteries that store electricity, whether added to existing solar or installed on their own and charged from the grid
- air source, ground source and water source heat pumps
- smart diverters, which send spare solar to something like a hot water cylinder
Batteries, smart diverters and water source heat pumps joined the list on 1 February 2024. That is when a standalone battery, with no solar panels at all, started to qualify.
The list also includes insulation, draught stripping, controls for central heating and hot water, wind and water turbines, micro combined heat and power units and wood-fuelled boilers.
One detail on heat pumps: an air source heat pump only counts if it is permanently fixed. A portable unit does not. If a heat pump is on your list, our page on air source heat pumps explains how we design one.
Who does it apply to?
The zero rate covers installation in residential accommodation: houses, flats and other homes. It also covers some buildings used by charities. Business premises, such as offices and shops, are not included.
The materials also have to be supplied and installed together. HMRC is clear that materials supplied without installation are charged at the standard rate. So a battery bought online and fitted later does not get the relief.
What is not on the list?
EV chargers, MVHR (mechanical ventilation with heat recovery) and underfloor heating are not on the list. Installed on their own, they are charged at the standard rate.
The picture can change when one item is part of a bigger job. HMRC treats some jobs as a single supply, where the main part sets the VAT rate for the whole. Its own example is a central heating system built around a heat pump instead of a boiler, which it treats as one zero-rated supply. So the VAT on something like underfloor heating can depend on the job it belongs to. We show the VAT treatment on every quote, line by line, so you can see exactly how it has been applied.
What happens on 1 April 2027?
The rate is due to revert to 5%. It does not jump to the full 20%. To put that in plain numbers: on a £10,000 job, 5% VAT would add £500. That figure is only an illustration, not a price, but it shows what the date is worth.
Which date counts for your job?
This is the question we hear most, and the honest answer is that it depends. HMRC’s rules on when VAT is due look at events such as when the work is done, when you are invoiced and when you pay. Jobs paid in stages can follow different rules again.
So if your installation is close to the deadline, ask us how the timing works for your job before you book. We would rather talk it through with you than guess.
Could the deadline change?
It could. The government sets the rate, and it can change it. We are not going to predict what it will do. If the rules change, we will update this post.
What to do now
If you are thinking about solar, a battery or a heat pump, the simplest first step is a survey. We look at your roof, your meter and your usage, design a system around them and give you a fixed, itemised quote with the VAT shown. There is no pressure to go ahead. You will simply know where you stand before 31 March.
Get in touch and we will arrange a visit.
Figures reviewed 18 September 2026.