NO VAT ON SOLAR AAnd battery storage if fitted together.

Chancellor Rishi Sunak announced yesterday during the Spring Statement 2022, they’re cutting VAT on installing energy-saving materials in residential properties from 5% to 0% from 1 April 2022 until 31 March 2027 – a call Solar Energy UK has been making for years.

Solar Energy UK has sought clarity from Government on the classification of domestic energy storage within the VAT announcement and we are delighted to announce that Government has confirmed that the zero rate VAT applies to domestic energy storage when installed with solar, although retrofit or standalone batteries would still be subject to 20% VAT. We are happy to take more detailed questions about the implementation to Government for further clarification.