What HMRC’s notice says
HMRC applies a zero rate of VAT to installing certain energy-saving materials from 1 May 2023 to 31 March 2027 (HMRC VAT Notice 708/6). The materials include solar panels and batteries for storing electricity.
The relief applies to installations in residential accommodation, and to buildings used solely for relevant charitable purposes. Business premises are not covered, so commercial solar is charged VAT at the standard rate.
Batteries count too
The notice covers batteries fitted as part of a new solar system, and it also covers retrofitting a battery to store electricity from existing solar panels. HMRC also says that from 1 February 2024, stand-alone electrical storage batteries installed in homes qualify for the zero rate.
Why the date matters
The zero rate is set to end on 31 March 2027. If it does, a home installation after that date would be charged VAT at whatever rate then applies. On a system at Checkatrade’s Derby average of £9,831, the difference between 0% and a standard rate would be a large sum.
What counts is when the work is done and supplied under HMRC’s rules, not when you first ask for a quote. If you are planning an install or a battery, allow time for the survey, any planning check, ordering equipment and the grid notification.
Checking your quote
A quote for a home install before the end date should show VAT at 0%. If it shows VAT at the standard rate for a home, ask why. Is this a good solar quote? has a full checklist, and how much solar panels cost in Derby sets out the published prices.