Cost & payback

0% VAT on solar panels

By Daniel Osei · Last checked 25 June 2026

Solar panels currently carry no VAT in Great Britain. It is a genuine saving on the total bill, it applies to everyone rather than just lower-income homes, and there is nothing to claim because the installer simply does not add VAT. This page sets out what the zero rate covers and how long it lasts.

The quick version

  • Solar, supplied and installed, is 0% VAT in Great Britain
  • The zero rate runs from 1 April 2022 to 31 March 2027
  • After that it is due to return to 5%, not the standard rate
  • A battery fitted at the same time as solar is covered too
  • The installer applies it automatically, so there is nothing to claim

What the zero rate is

VAT is the tax added to most goods and services. On the supply and installation of solar panels in homes in Great Britain, that rate is currently 0%. It is part of a wider zero rate on energy-saving materials, and solar is one of the qualifying technologies.

It is not means-tested and there is no application. The benefit is built into the price, so on a typical 4 kW system, which runs around £6,000 to £8,000 installed, the figure you are quoted already reflects the zero rate.

How long it lasts

The zero rate took effect on 1 April 2022 and is set to run until 31 March 2027. After that date it is scheduled to return to 5%, which is the reduced rate for energy-saving materials, not the full standard rate.

So if you are weighing up timing, having the work done and invoiced while the zero rate applies avoids the 5% that is due to come back afterwards. Rules can change, so it is worth a final check close to that date, but the current position is a hard end of 31 March 2027.

What it covers, including batteries

The zero rate covers the panels and the cost of fitting them. A battery installed at the same time as the solar is covered too, as part of the same job.

Since 1 February 2024 the zero rate was also extended to cover a battery fitted on its own, without solar at the same time. This part is newer and HMRC guidance has focused on solar, so it is worth your installer confirming it applies to your specific job before you rely on it.

Is a solar battery worth it?

What is not covered

The zero rate is for installation by a supplier. Buying panels yourself to fit, with no installation service, does not get the same treatment, so the materials-only route is not zero-rated in the same way.

It also applies to homes in Great Britain. Northern Ireland is broadly aligned through separate arrangements, but the detail can differ, so check the current HMRC position for a Northern Ireland address.

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Common questions

Do I pay VAT on solar panels?
No. In Great Britain, the supply and installation of solar in homes is 0% VAT until 31 March 2027. The installer applies it automatically, so there is nothing for you to claim.
When does the 0% VAT end?
It runs from 1 April 2022 to 31 March 2027. After that it is due to return to 5%, the reduced rate for energy-saving materials, rather than the full standard rate.
Is a battery zero-rated too?
A battery fitted at the same time as solar is covered. Since 1 February 2024 a battery fitted on its own was also brought into the zero rate, though this part is newer, so it is worth your installer confirming it applies to your job.
Do I have to claim the 0% VAT back?
No. There is nothing to claim. The installer simply does not add VAT to the invoice, so the price you are quoted already reflects the zero rate.
How much does 0% VAT save on a solar installation?
It removes the VAT that would otherwise sit on the job. On a typical 4 kW system around £6,800, the 5% rate due to return after March 2027 would add roughly £340, and the standard 20% rate would have added far more. The zero rate means none of that is on your invoice today.
Will solar panel VAT go up in 2027?
It is scheduled to. The 0% rate runs until 31 March 2027, then is due to return to 5%, the reduced rate for energy-saving materials, not the full standard rate. Having the work done and invoiced before that date avoids the 5%. Rules can change, so it is worth a final check close to the date.
Is there VAT on a solar battery?
A battery fitted at the same time as solar is covered by the 0% rate as part of the same job. Since 1 February 2024 a battery fitted on its own was also brought into the zero rate. That part is newer and HMRC guidance has focused on solar, so it is worth your installer confirming it applies to your specific job.

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