Since April 2022, qualifying home solar and battery installations have carried 0% VAT (in Great Britain; Northern Ireland followed in May 2023). Before that they were taxed at the reduced 5% rate — and from 1 April 2027 they're currently set to revert to that same 5% rate. So the 0% window is a real, dated saving, and a genuine reason not to dither.
What's covered today
The 0% rate applies to the supply and installation of qualifying energy-saving materials in residential homes — solar panels and, since 1 February 2024, standalone batteries too. It covers both the kit and the labour, as long as the same firm supplies and fits it (buying equipment alone to fit yourself doesn't qualify).
Why the deadline matters
Unless the government extends it, installs completed from 1 April 2027 carry the 5% reduced rate again rather than 0%. On a typical £7,000 (ex-VAT) system that's about £350 more; on a £12,000 solar-plus-battery job, about £600. Not a fortune — but real, and installer diaries tend to fill up ahead of deadlines like this, so the comfortable window to plan, quote and install is well before the date itself.
The quick version
- 0% VAT on qualifying solar & batteries is scheduled to end 31 March 2027.
- From 1 April 2027 it returns to the 5% reduced rate — not 20%.
- That's roughly £350 more on a typical £7,000 system; plan early as diaries fill up.