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No VAT on Solar Batteries

Solax Battery

Did you know that there since 1st February 2024 there has been no VAT on Solar Batteries? In December 2023, the UK government revealed its plans to broaden the VAT relief already applicable to Solar Panels and other energy-saving materials to encompass Solar Batteries. This provides another great reason for households to move to Solar Panels and embrace green energy.

What does 0% VAT on Solar Batteries mean for homeowners?

Solar batteries make up a substantial portion of the expenses associated with a solar system installation, making a 20% reduction in their cost highly favourable to consumers. This development is excellent news for households seeking to trim their energy expenditure and accelerate the return on investment for a solar panel and battery setup, as the initial outlay is reduced.

Vanessa Collins, Director at SolarGain, commented, “We welcome the removal of VAT from Solar Battery Storage as it will make renewable energy solutions more accessible to consumers and further incentivise the move to solar with energy storage.”

Which Technologies are now VAT free?

The government has overlooked the critical role that battery storage has in reducing emissions and the supporting the move to  green energy. So, the introduction of No VAT on battery storage is a welcome step in the right direction.

The VAT relief will cover:

  • Electrical battery storage
  • Water-source heat pumps
  • Diverters retrofitted to ESMs such as solar panels and wind turbines

How will no VAT on Solar Batteries impact the UK?

To achieve its goal of reaching net zero emissions by 2050, the UK must focus on decarbonising 29 million homes to provide clean and cost-effective energy. This entails promoting the adoption of domestic low-carbon technologies and implementing energy-efficient measures to retrofit residential properties. The adjustment in VAT is expected to play a role in ensuring accessible energy for the UK by incentivising increased deployment of residential solar PV as well as solar thermal systems, and other energy efficiency measures.

How long will there be No VAT on Solar Battery Storage for?

The tax exemption on these technologies is scheduled to remain in effect from 1st February 2024 until 31st March 2027 throughout the entire United Kingdom. Subsequently, the tax rate will revert to a reduced VAT of 5%, down from the previous 20%.

Which types of Battery Storage Installations are exempt from VAT?

Solar Panels with Battery Storage

If you are a homeowner considering the installation of both solar panels and battery storage, then this 0% VAT relief will save you money on both items. This type of “complete” installation is very popular as it maximises the consumption opportunities of the energy that your solar panels generate. Reducing the amount of energy that goes back to the grid so you can store it for later use.

_Solar Panels on a Garage

Standalone Battery Storage

If you’re considering installing home battery storage without solar panels or another renewable energy source, you’ll also enjoy a 0% VAT exemption on your installation! Standalone solar batteries offer an excellent opportunity to benefit from time-of-use tariffs and lower energy costs, while also providing energy security in case of grid failure. By charging your battery affordably overnight, when energy prices are at their lowest and greenest, you can reduce strain on the grid and save money on your energy bill. This stored energy can then be used during the day, particularly during peak hours when your property requires power the most.

Retrofit Solar Batteries

If you already have a solar panel system and are considering retrofitting a solar battery, you’ll also qualify for a VAT exemption on your installation. There are numerous advantages to integrating battery storage with your solar panels. By incorporating battery storage, you can store any surplus energy generated to utilise during periods of low generation, such as cloudy days or evenings. This diminishes your reliance on the grid, enhances your energy independence, and further reduces your carbon footprint. Maximising self-consumption through a battery storage and solar panel installation can result in significant savings on your energy bill, making it a worthwhile consideration.

Add More Solar Batteries

Perhaps you already have solar panels with some battery storage but you want to add some more, then you will also benefit from 0% VAT on the installation. If you are getting an EV an extra solar battery can make a world of difference.

The Benefits of Solar Batteries – Why 0% VAT is Good News

What?Why?
Better Energy IndependenceElectrical battery storage empowers homeowners to store excess energy generated by solar panels, granting greater control over energy usage and reducing dependence on the grid, particularly during peak periods.
Enhanced Energy EfficiencyBy storing energy for future use, these systems prevent wastage of produced energy, thereby enhancing the overall efficiency of renewable energy systems.
Spend less on energy bills and keep more money in your pocketThe capacity to store and utilise energy during peak demand periods, when grid energy is more costly, results in significant savings on energy bills.
Emergency EnergyIn case of a power cut, a battery storage system can provide a dependable backup power source.
Reduce your Carbon FootprintBy maximising the use of renewable energy, battery storage systems diminish reliance on fossil fuels, thereby lowering carbon emissions.
A table detailing the benefits of solar batteries

Take advantage of 0% VAT on Solar Batteries with SolarGain

If you are adding batteries to your solar panel system or if you are moving to solar, now is the right time. We supply and fit a wide range of different batteries. We can install GivEnergy All in One Solar batteries with 12-year warranties, or quality Growatt, Puredrive, Solax, Sunsync and Pylontech Batteries.  

If you’re a homeowner eager to benefit from the VAT exemption on batteries, get in touch with our green team for a free quote. Contact us now at 800 001 6258.

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We are happy to answer any Solar questions you may have and also offer a free, no-obligation, solar quotation service.

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