0% Vat on batteries, for Solar PV.

Starting February 1, 2024, the UK government will offer 0% VAT on hundreds of energy-saving products, including solar panels, battery storage systems, and EV chargers. This move makes renewable energy solutions more accessible and affordable than ever before.

VAT, a tax traditionally applied to goods deemed non-essential, was set at 20% in 2010. Over the years, many industries have campaigned to reduce or eliminate VAT on products they argue are essential for modern living—none more so than the renewable energy sector.

By removing VAT from these products, they are now more accessible than ever. While Solar PV products can be expensive, there has never been a better time to buy them.

In April 2022, VAT on complete solar energy systems, including panels, inverters, and installation, was reduced to 0%, kickstarting a surge in solar panel installations across the UK. By removing financial barriers, this tax cut encouraged more homeowners and businesses to adopt solar PV systems, marking a significant milestone in the country’s transition to renewable energy.

The 2024 expansion of the VAT exemption to include battery storage systems and other energy-saving products signals a continued commitment to supporting green energy solutions. Whether retrofitting a battery to an existing solar system or installing a standalone energy storage solution, you’ll save 20% on your investment.

Potentially this could go towards further investments in your home, fantastic products like Air Source Heat Pumps or Ev Charging Points. making it more energy efficient. Or you could simply save it.

Battery storage systems allow households to maximize the efficiency of their solar panels by storing excess energy generated during the day for use at night or during peak demand times. With many energy providers introducing Smart Export Guarantee (SEG) tariffs, homeowners can also sell stored energy back to the grid, further lowering their energy costs.

This dual benefit—reducing reliance on the grid and earning from excess energy—has made battery storage a key component of modern solar systems. The 0% VAT incentive makes these systems more affordable, enabling more households to join the renewable energy revolution.

You could, if you had the right tariff, make use of a battery without even having solar panels. By filling your battery on the cheaper night rate you can save money on your energy during the day. You could even sell it back to the grid during the day if you don't use it and make money on it. Selling it back to the grid during the day on the more expensive rate.

The VAT exemption applies to a wide range of energy-saving measures (ESMs), including:

• EV chargers (Gasway Install lots of these)
  
• Immersion diverters for heating water
• Water-source heat pumps
• LED low-voltage lighting
• Thermostatic radiator valves

This comprehensive approach ensures that homeowners have access to a variety of technologies to improve energy efficiency and reduce carbon footprints.

The 0% VAT rate is set to expire on March 31, 2027, as outlined in the legislation’s Sunset Clause. After this date, VAT will revert to the reduced rate of 5% for energy-saving products. While there’s a possibility the policy may be extended, now is the best time to take advantage of these savings.

Ready to Go Solar?

With 0% VAT on solar panel installations and battery storage systems, there’s never been a better time to invest in renewable energy for your home or business.

🔗 Learn More About Solar and Battery Storage Installations Today
Transform your energy use, reduce your bills, and help the planet with these incredible savings.

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