VAT on solar panels: 0% until 31 March 2027
The zero VAT rate on installed solar is the one form of government support that every household in the UK gets automatically. It isn't a grant, and it has an end date. Here is exactly what it covers.
The short answer
Yes, it applies to every home. Installing solar panels, batteries or heat pumps in a home is zero-rated until 31 March 2027; from 1 April 2027 the rate is 5%. Panels supplied without installation are charged at the standard rate, and the installer applies the relief on the invoice.
Facts checked at source on 2 and 3 November 2026 · Solar PV Panels Grants is an independent explainer from SEO-DONS LTD, not a scheme
The rules in HMRC's notice
HMRC's VAT Notice 708/6 covers energy-saving materials and heating equipment. It sets a zero rate of VAT for the installation of qualifying energy-saving materials in residential accommodation, from 1 April 2022 to 31 March 2027. Solar panels are on the list, along with insulation, heat pumps, and batteries. Since 1 February 2024, batteries installed on their own, and charged from the grid rather than from panels, have been included too.
Three conditions do most of the work. The materials must be installed, not just supplied. The installation must be in residential accommodation, which means homes rather than businesses. And the supply is of installation and materials together, by the firm doing the work. If those hold, the whole of the installer's charge for the job is zero-rated.
From 1 April 2027 the rate becomes 5%, the reduced rate that applied before April 2022. When we checked the notice on 3 November 2026, it still showed that end date, and we found no announcement of an extension.
Where the zero rate doesn't apply
- Panels bought without installation. Buying panels or a battery to fit yourself, or to have someone else fit, is a supply of goods charged at the standard rate.
- Gas boilers. They are not energy-saving materials for this purpose and are standard-rated.
- Commercial premises. The relief is for residential accommodation. Businesses have their own VAT position.
- Unrelated work. Work that is not part of installing the qualifying materials, such as a separate roof repair, may be charged at the standard rate. Ask the installer to show it separately.
The relief applies across the UK, including Northern Ireland, because VAT is a UK-wide tax.
What the rate does to a price
An illustration of the arithmetic only, using a round £6,000 as the price before VAT. It isn't a typical price for any system: get quotes for your own home.
| Situation | VAT rate | VAT on £6,000 | Total |
|---|---|---|---|
| Installed in a home before 1 April 2027 | 0% | £0 | £6,000 |
| Installed in a home from 1 April 2027 | 5% | £300 | £6,300 |
| Supplied without installation | 20% | £1,200 | £7,200 |
Should the end date change your timing?
The change on 1 April 2027 is from 0% to 5%, not to 20%. On a quote of a few thousand pounds, that is a real but modest difference, and it shouldn't push anyone into a contract they haven't checked. A system that suits your home is worth more than the timing of its invoice.
If your installation will straddle the date, ask the installer in writing which rate will apply to each payment, including any deposit. The rate depends on when the work is done and when you pay or are invoiced, and HMRC publishes guidance on how changes in VAT rates apply.
The date also matters for scams. Expect to see "act before the deadline" marketing in early 2027. The relief is real, but it is not a grant, and no one can "secure" it for you: it is simply the rate on the invoice.
How to check VAT on a solar quote
- The quote should show the VAT rate and amount. For installed solar in a home before 1 April 2027, the rate is 0%.
- If the quote includes work that isn't part of the installation, such as roof repairs, it may carry VAT at the standard rate. Ask for it to be listed separately.
- If panels are sold to you for someone else to fit, VAT will be at the standard rate, and the price comparison should account for it.
- If a quote mentions "VAT savings" as though they were a grant, ask for the full price including VAT, and compare that.
The other real reductions
The VAT relief combines with every other route, including the means-tested schemes, where the funding body pays the bill.
A loan through the Warm Homes Loan Scheme finances the VAT-inclusive price. Export payments are income after installation. And for eligible lower-income homes in England, Warm Homes: Local Grant can pay for the work outright.
If you are working out what solar costs without a grant, see paying for solar without a grant.
Four things the VAT relief is often mistaken for
A rebate. There is nothing to claim back. The installer charges 0% and you pay the invoice.
A grant. It lowers the price by removing a tax. Adverts that call it a "government grant" are misdescribing it.
Something only some households get. It applies to every qualifying installation in a home, whatever the household's income.
Permanent. It ends on 31 March 2027 unless the government extends it. Check HMRC's notice for the current position before relying on any date.
VAT questions
Is there VAT on solar panels?
Not on solar panels installed in a home, until 31 March 2027. From 1 April 2027 the rate becomes 5%. Panels bought without installation are charged at the standard rate.
Is a battery zero-rated too?
Yes, when installed in a home. Since 1 February 2024 that includes a battery installed on its own and charged from the grid, as well as one installed with solar.
Do I claim the relief from HMRC?
No. The installer applies the correct rate on the invoice. There is nothing for a household to claim.
Is 0% VAT a grant?
No. It is a tax relief that lowers the price you pay. Calling it a grant is misleading.
Will the zero rate be extended?
When we checked HMRC’s notice on 3 November 2026, the end date was still 31 March 2027 and we found no announced extension.
Where these facts come from
- HMRC — VAT Notice 708/6, energy-saving materials — checked 3 November 2026
- House of Commons Library — briefing CBP-9585 on home energy support (PDF) — checked 2 November 2026
- GOV.UK — Warm Homes Loan Scheme factsheet (27 October 2026) — checked 3 November 2026
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