0% VAT on solar, explained simply.

Last updated: 3 July 2026 · Written by the ECONEXIS team, MCS-accredited installers.

Since 2022, domestic solar installations in Great Britain carry 0% VAT instead of the old 20% (or 5%) — and since February 2024 that includes standalone battery storage too. It's not a grant, not a scheme you apply for, and there's no eligibility form: the zero rate is simply applied to your installation price (the full rules are in HMRC's guidance on energy-saving materials, VAT Notice 708/6). Here's what it covers and the catch to know about.

What qualifies for 0% VAT

• Solar panel installations on residential homes — panels, inverter, mounting and installation labour, as one supply.
• Battery storage — whether installed with solar or added to an existing system.
• Air source heat pumps and several other energy-saving materials.

The zero rate applies when the goods and installation are supplied together by the installer — which is exactly how an ECONEXIS install works. Buying kit yourself and arranging separate labour can forfeit the relief.

What it's worth in real money

On our recent quotes it's substantial: a £7,990 system (10 panels + 10 kWh battery) would cost roughly £1,600 more at 20% VAT; a £14,000 system nearer £2,800 more. Every price we publish and quote is already at the zero rate — see what solar actually costs in 2026.

The deadline: 31 March 2027

The zero rate is currently legislated to end on 31 March 2027, when it's due to revert to the reduced 5% rate unless the government extends it. Nobody can promise what happens after that — but installations completed while the relief is live lock in the saving. It's one genuine, non-salesy reason not to sit on the decision for years.

No grant needed — the maths already works

We focus on privately-funded installs for homeowners, priced honestly: recent systems from £6,690 with first-year savings of £1,100–£2,100 and payback in 5–8 years — at 0% VAT, with the Smart Export Guarantee paying you for spare generation on top. Your free custom design shows your exact figures.

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