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Policy · 5 min read

Will the 0% VAT on Solar End? The 2027 Deadline

The 0% VAT on home solar and batteries ends 31 March 2027.

The short answer

The 0% VAT on home solar and batteries is set to end on 31 March 2027. From 1 April 2027, qualifying installs go back to the 5% reduced rate, not the full 20% rate. On a typical £7,000 system, that's about £350 more. On a £12,000 solar-plus-battery job, it's about £600 more.

Since April 2022, qualifying home solar and battery installs have carried 0% VAT in Great Britain. Northern Ireland followed in May 2023. From 1 April 2027, that's set to revert to the 5% rate it had before, so the 0% window is a real, dated saving.

What's covered today?

The 0% rate applies to qualifying energy-saving materials fitted in homes. That means solar panels, and since 1 February 2024, standalone batteries too. It covers both the kit and the labour, as long as one firm supplies and fits it. Buying the equipment alone and fitting it yourself doesn't qualify.

Why does the deadline matter?

Unless the government extends it, installs finished from 1 April 2027 carry the 5% reduced rate again, not 0%. On a typical £7,000 (ex-VAT) system, that's about £350 more, and on a £12,000 solar-plus-battery job, it's about £600 more. That's not a fortune, but it's real money. Installer diaries tend to fill up before deadlines like this, so plan, quote, and install well before the date.

Sunny says
This is a real, dated policy change, not a fake 'offer ends tonight'. Note it returns to 5%, not 20%, so don't let anyone scare you with talk of a 20% price rise. Plan ahead, but still compare quotes properly. A rushed, bad install costs far more than the VAT you'd save.

The quick version

Common questions

When does the 0% VAT on solar panels end in the UK?

The 0% VAT relief on qualifying home solar and battery installs is set to end on 31 March 2027. From 1 April 2027 the rate reverts to the reduced 5% rate, not the standard 20%, unless the government extends the relief.

How much does 0% VAT save on a solar installation?

These installs were taxed at 5% before April 2022, and they're set to return to 5% from 1 April 2027. So acting during the 0% window saves you that same 5%. That's roughly £350 on a typical £7,000 system, or about £600 on a £12,000 solar-plus-battery install. The relief covers both equipment and labour when one firm supplies and fits it.

Where this comes from

Last checked 31 August 2026. How we check our facts

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