0% VAT on Solar Panels: What Homeowners Need to Know
UK homeowners pay 0% VAT on solar PV plus battery storage installs from 1 April 2022 until 31 March 2027. The relief applies to the full install — panels, inverter, battery, scaffolding, mounting kit, cables and labour — when supplied by an installer as a single contract. After 31 March 2027 the rate returns to 5% under the Energy Saving Materials reduced rate, unless extended. Battery-only retrofits also qualify for 0% VAT under the same scheme.
0% VAT is the single biggest piece of policy support UK domestic solar customers have had in over a decade. On a typical £10,000 install — see our UK solar panel installation cost guide for the full pricing table — the 0% rate saves £2,000 versus the standard 20% commercial rate, roughly a year off domestic payback. It applies automatically — you don’t apply, you don’t claim, you just don’t pay it.
What the 0% VAT rate covers
HMRC’s notice 708/6 lists the qualifying Energy Saving Materials (ESM). For solar specifically:
- Solar photovoltaic panels (any approved technology — silicon, thin-film, perovskite hybrids)
- Inverters (string, hybrid, microinverter, optimiser systems)
- Battery storage systems (LFP, lithium-ion in general — the chemistry isn’t restricted)
- Mounting systems and roof fixings
- Cabling, isolators, fuses, switchgear
- Scaffolding hired specifically for the install
- Roof penetration / weatherproofing materials
- Smart energy controls and metering associated with the system
- Labour for design, installation, commissioning and certification
What 0% VAT doesn’t cover
- Re-roofing or general roof repair not directly part of the install (these stay at 20%)
- Electrical works upstream of the consumer unit not related to solar (rewiring etc.)
- EV charge points sold as a standalone retrofit — these have separate VAT treatment (currently 5% reduced under ESM)
- Garden / external lighting or wider electrical projects bundled into the same quote
- Optional finance or interest charges (these aren’t goods or services subject to VAT in the first place — for the breakdown of pay-monthly options see our solar panel finance guide)
Who’s eligible
The 0% rate applies to supplies of solar PV / battery installation in residential premises in the UK. ‘Residential premises’ means a person’s home, including:
- Owner-occupied houses, flats, bungalows, mobile homes
- Rented residential property (the landlord receives the 0% rate when commissioning install)
- Social housing
- Park homes registered as residential
It doesn’t apply to non-residential premises — commercial buildings, mixed-use where the residential portion is minor, or holiday lets that don’t qualify as residential.
What 0% VAT means for your quote
Most MCS installers (Spectrum included) quote domestic installs ex-VAT or with VAT shown as zero — the price you see is what you pay. If a quote shows ‘+VAT’ on a domestic install, ask why. The most common reasons are (a) the installer hasn’t updated their quote template since 2022, or (b) something in the scope — usually re-roofing or non-ESM electrical work — isn’t eligible.
Get a quote with the VAT treatment clearly shown
Spectrum quotes domestic installs with 0% VAT as standard until March 2027. No surprises, no ‘+VAT’ lines.
Request a QuoteWhat happens after 31 March 2027
Unless extended, the 0% rate reverts to 5% under the Energy Saving Materials reduced rate from 1 April 2027. That’s still better than standard 20%, but it adds roughly £500 to a typical £10,000 install. If you’re thinking about solar in 2026, the timing argument leans towards completing the install before 31 March 2027.
The Treasury could extend the 0% rate beyond 2027 (it’s been extended before), but we’d advise customers to plan on the published expiry date rather than a hoped-for extension.
The 0% VAT effect on payback
| System | 20% VAT | 0% VAT (current) |
|---|---|---|
| 5–6kWp + 16.1kWh battery (Spectrum sweet spot) | £11,995 inc VAT | £9,995 (the same install) |
| Annual savings (Agile + Predbat) | £1,800 | £1,800 |
| Payback range | 6.5–7 years | 5.5–6 years |
That’s a year off payback for free, just from the VAT policy . It’s the strongest incentive on the table for UK domestic solar in 2026. For the full payback maths on a battery-storage home see our solar battery storage payback guide; for help deciding whether solar is worth it for your specific household see are solar panels worth it in 2026.
Common VAT mistakes we see
- Quoting with VAT, then ‘discounting’ it. Some installers run sales scripts where the ‘discount’ is just the VAT they shouldn’t have charged.
- Charging VAT on roof repairs unrelated to the install. Correct — but those repairs shouldn’t be on the same quote as the solar install. Get them quoted separately.
- Adding VAT to battery-only retrofit. Battery-only retrofits qualify for 0% VAT under the same ESM scheme.
- Listing ‘design fee’ or ‘survey fee’ at 20%. Both are part of the install scope and qualify for 0% when supplied as part of the contract.
FAQs
When does 0% VAT on solar panels end?
31 March 2027, under current HMRC guidance. From 1 April 2027 the rate is scheduled to return to 5% under the Energy Saving Materials reduced rate, unless the Treasury extends. We’d advise planning on the published expiry date rather than a hoped-for extension.
Does 0% VAT apply to battery storage on its own?
Yes — battery-only retrofits to existing solar PV systems qualify for 0% VAT under the Energy Saving Materials scheme. The relief applies to the battery hardware, associated wiring, isolators and labour, supplied by the installer as a single contract.
Does 0% VAT apply if I’m installing solar on a rental property?
Yes, when the install is commissioned by the landlord and the property qualifies as residential premises. Holiday lets without residential occupancy status don’t qualify. HMRC notice 708/6 has the full definition.
Can I claim back 0% VAT myself?
There’s nothing to claim back — the 0% rate is applied at point of supply by the installer. You shouldn’t see VAT on the invoice in the first place. If an installer charged you VAT in error, raise it with them for correction.
Do commercial solar installs get 0% VAT too?
No. Commercial installs carry standard 20% VAT, fully recoverable for VAT-registered businesses. The 0% rate is a domestic-only relief. Commercial customers offset cost via Annual Investment Allowance instead — see our capital allowances article.
What if my install bridges 31 March 2027?
VAT is determined at the time of supply — usually the invoice or completion date. If the contracted install completes after 1 April 2027, expect to be charged at the 5% rate then in force. To lock the 0% rate, the install should complete before the cutoff. Lead times suggest committing by late 2026 to be safe.
Does 0% VAT cover EV chargers fitted with solar?
EV charge points supplied as part of a wider Energy Saving Materials installation (with solar PV) can be included at 0% VAT. EV chargers fitted standalone, without solar PV in the same contract, carry the 5% reduced rate under ESM. Bundling matters for the VAT outcome.
Related reading
- Solar panel finance UK: pay-monthly options explained
- Are solar panels worth it in 2026?
- Solar panel installation cost UK 2026
For the full Spectrum service overview see domestic solar overview.
Speak to Spectrum Energy Systems
MCS NIC200223. We quote domestic solar PV plus battery installs at 0% VAT — no surprises, no hidden lines. Locked while the relief is live.
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