0%
The installer supplies and fits the system
- Eligible materials and installation form the qualifying supply
- The installer applies the correct VAT treatment
- Solar, battery storage and eligible ancillary items may be included
Temporary UK VAT relief until 31 March 2027
0% VAT on installed solar and battery storage
Qualifying domestic solar-panel and battery installations currently receive a temporary zero rate of VAT. The key word is installed: supply-only hardware purchased from a retailer remains subject to 20% VAT.
0%qualifying installed systems now
20%supply-only equipment purchases
31 March 2027temporary zero-rate end date
5%qualifying installations from April 2027*
0% VAT explained
What the solar VAT relief actually means
The current relief does not make every solar panel or battery VAT-free. It applies to the service of installing qualifying energy-saving materials in eligible residential accommodation and certain charitable buildings.
When the installer also supplies the qualifying equipment as part of that installation, the eligible single supply can receive the same 0% VAT treatment. A retailer that only sells the hardware must still charge the standard rate.
The installer or supplier is responsible for deciding and documenting the correct VAT treatment for the particular job.
Two different purchase routes
Installation and hardware-only purchases are treated differently
This is the point most likely to cause confusion when comparing online equipment prices with a fully installed quotation.
20%
You purchase the equipment separately
- The retailer must charge standard-rate VAT on the products
- This includes DIY and trade purchases from our website
- A later installation does not retrospectively remove that hardware VAT
Already bought the equipment? HMRC says a qualifying installation service can still receive relief where the customer purchased the materials separately. However, the retailer's original hardware sale remains standard-rated.
Battery storage included
Standalone and retrofit battery installations can qualify
Since 1 February 2024, qualifying electrical battery-storage installations have been included within the temporary zero rate. The relief is not limited to a battery fitted at the same time as new solar panels.
Solar plus batteryInstalled together as a complete energy system
Retrofit batteryAdded to an existing solar installation
Standalone batteryInstalled to store electricity from the grid
Simple VAT illustration
What the different rates mean on the same £5,000 net charge
This simplified example shows only the VAT calculation. Actual project prices, scope and eligibility will vary.
*Based on legislation and published HMRC guidance checked on 21 August 2026. Tax rules can change; the supplier or installer must confirm the correct treatment for each contract.
Common questions
0% VAT on solar and batteries: FAQs
These answers summarise current HMRC guidance. They are general information rather than individual tax advice.
Does 0% VAT apply to solar panels bought online?
No, not where the transaction is hardware supply only. A retailer's sale of solar panels or batteries remains subject to standard-rate VAT. The relief applies to qualifying installation services and qualifying equipment supplied by the installer.
Is battery storage eligible for 0% VAT?
Yes. Qualifying installations can include a battery installed alongside solar, a battery retrofitted to an existing renewable system, or a standalone battery installed to store electricity from the grid.
When does the 0% VAT rate end?
The temporary zero rate currently runs until 31 March 2027. Under current legislation, qualifying installations move to the reduced VAT rate of 5% from 1 April 2027.
Can I buy the equipment and pay an electrician separately?
You can, but the retailer must still charge 20% VAT on the hardware. A separate qualifying installation service may be zero-rated; that does not remove or refund VAT already charged on the products.
Does the relief cover ordinary commercial premises?
Not automatically. The energy-saving materials relief is principally for qualifying installations in residential accommodation and buildings used solely for a relevant charitable purpose.
What solar equipment can be included?
HMRC describes photovoltaic solar-panel systems as including panels with cabling, a control panel and AC/DC inverter. Whether other work or equipment forms part of a qualifying single supply depends on the facts and contract.
Who decides whether my project qualifies?
The supplier or installer applying the VAT rate is responsible for the correct treatment. The property, equipment, installation and contractual arrangement all matter.
Official sources
Current HMRC guidance
This page was checked against official guidance on 21 August 2026.
Considering solar or battery installation?
Request a no-obligation quotation while qualifying installations still benefit from the temporary 0% VAT rate. We can help establish a suitable system and installation route.