0% VAT on Solar and Battery Storage

0% VAT on Solar and Battery Storage

From the 1st of Febuaury 2024 the government have introduce 0% VAT rate on the installation of new and/or retro-fit Battery energy storage units (BESS) which until now were subject to full VAT unless they were installed at the same time as the SolarPV, so this is a great incentive for those who already have SolarPV fitted and wanted to add battery storage.

The UK must decarbonize 29 million homes to meet its 2050 net zero target. This requires deploying clean energy and efficiency upgrades nationwide. The new VAT reduction should help by making solar panels, batteries, and other upgrades more affordable.

However, batteries still face a disincentive, as they are not on the VAT exemption list. Consumers who cannot afford full retrofits in one go are penalized. Batteries’ tax status should not depend on timing. Solar Energy UK and others have called to add batteries to the VAT exemption list.

To boost uptake of home solar and batteries, Solar Energy UK recommends:

- 0% VAT on all solar, batteries, and related maintenance
- A long-term retrofit support scheme for homeowners, through at least 2030
- Building regulations that incentivize onsite solar and storage

The key is ensuring affordability of the technologies to reach net zero goals. VAT exemptions, robust support schemes, and enabling regulations are crucial steps.

Posted on 2nd Feb 2024 12:02:21 by surrect.media

Tags: VAT, News.

Solar VAT Reduction and Navitas on ITV

Solar VAT Reduction and Navitas on ITV

With all the current energy and cost of living increasing, the government removed VAT on all environmental energy solutions - ours being solar, you can see our previous post about it here.

This has meant a lot of energy customers have been looking for more information on how solar can help them take control of their own energy usage.

Not only customers but press…so with a quick Google search ITV had found us online and picked up the phone to see if we would be interested in doing a news spot discussing the VAT reduction on solar. With a slight pause we said ‘of course’ and then had to draw straws as to who would be doing the interview!

Two days later we are all on-site in South Yorkshire at a customer’s install to do a short interview and for the ITV Calendar news team to shoot some B-roll. 

(Copyright ITV News Calendar)

ITV: “Have you seen an increase in the number of people interested in buying energy efficiency measures for their homes since the VAT was scrapped and why?” 

MW: “We have already experienced an increase in volume of enquiries, and yes some of the enquiries were to do with the VAT reduction but with all the energy increase it is a small added bonus to customers”

ITV: “Do you think the VAT scrap is enough to get more people to invest in energy efficiency measures, or do you think more could be done?” 

MW: “The VAT is not the first time we have had such a scheme, previous years have seen grants and feeding tariff but this time with the VAT reduction it is on the energy which is far better for the customer”

ITV: “What difference can some of the energy efficiency measures make when it comes to reducing energy bills?”

MW: “The cost of solar has come down so dramatically in the last few years, that the return on investment is actually paid back in 5 years and with some yields of up to 30% now. It’s never been a better time to invest in solar.”


If we can help answer any of your solar questions please give the team a call on 0114 248 4228 or if you would like a no obligation free virtual quote, fill out our form with your details here https://navitas-solar.com/domestic/

Navitas Solar - Let us make sense of solar for you.

Posted on 25th Apr 2022 18:18:00 by surrect.media

Tags: Energy efficiency, VAT.