What zero VAT on solar is

VAT is the tax added to most goods and services. HMRC has set a temporary zero rate for installing certain energy-saving materials in homes. Solar panels are on the list, with cabling, a control panel and an inverter.

This is not a grant. It simply removes the VAT from the installed price. You do not apply for it, because your installer sets the VAT on your quote.

This page is independent information. We are not HMRC, an installer or a tax adviser. Check the official notice if you need certainty.

Who it is for

The relief applies to work done in, or in the grounds of, a home. That means a house, a flat or other residential accommodation. You do not need to be on a low income or claim a benefit, because the relief is a tax rule rather than a means-tested scheme.

It covers the whole UK. Our pages on solar funding routes in England, solar funding routes in Scotland and solar funding routes in Wales show the grants that sit on top of it. Northern Ireland gets the zero rate too from 1 May 2023, so see solar funding routes in Northern Ireland.

If you get benefits, other help may also be open to you. For example, read our guide to solar funding if you get benefits.

What it can pay for

The zero rate covers the installation of solar panels in a home. It also covers electrical storage batteries installed in a home from 1 February 2024. That includes a battery added to existing panels, and a standalone battery charged from the grid.

A battery installed with new solar panels is normally part of one zero-rated supply. However, heat batteries, which store heat, are not included. HMRC’s manual makes this clear. For wider battery help, read our guide to solar battery funding in the UK.

The relief covers installation. If you buy only the equipment, HMRC says supply-only is standard-rated. For example, buying panels from a shop and fitting them yourself would not qualify.

Current status

As of 10 October 2026, the zero rate is in force. HMRC says it applies from 1 May 2023 to 31 March 2027. From 1 April 2027, installations revert to the reduced rate of 5%.

We could not confirm whether a later announcement has moved the end date. GOV.UK pages we checked still show 31 March 2027. Therefore, check GOV.UK before you rely on the date.

Timing can matter for your quote. Because the rate changes in 2027, ask your installer which rate applies to your job. Ask them to put it in writing.

How to apply or take the next step

You do not apply. Ask your installer to show the VAT line on the quote, and check it says 0% for installation. The installer applies HMRC’s rules to your job, so ask them to explain it if it looks wrong.

The VAT saving works alongside other support. The Smart Export Guarantee pays for spare power, and solar loans and finance explains borrowing. You can also compare installers through our quotes page, if you want to.

What to check before you agree to anything

Check every quote line by line. A price that shows VAT on installation may be wrong, or it may include supply-only work. Ask the installer to explain, because you should understand every line.

Use this list before you sign. It only takes a few minutes.

  • Is VAT shown at 0% on the installation?
  • Does the price include the battery and who fits it?
  • When does the work take place?
  • Is the quote in writing?

Be careful if a firm says you must pay now “before the VAT goes up”. Pressure to pay quickly is a warning sign. The rate is not due to change until April 2027, so you can take time to compare quotes and read the contract. Our scams and red flags guide shows more warning signs.

FAQ / QUICK ANSWERS

Common questions

Is there VAT on solar panels in the UK?
Not on a home installation, for now. A zero rate applies to installing certain energy-saving materials, including solar panels, from 1 May 2023 to 31 March 2027. From 1 April 2027 the reduced rate of 5% is due to apply.
Does zero VAT apply to batteries?
Yes, for electrical storage batteries installed in a home from 1 February 2024. That includes a battery added to existing solar panels and a standalone battery that charges from the grid. Heat batteries are not included.
Do I pay VAT if I only buy the panels and fit them myself?
Probably yes. The relief covers installation. HMRC says supply-only is standard-rated.
Does zero VAT apply in Northern Ireland?
HMRC says the zero rate applies in Northern Ireland from 1 May 2023. Check the HMRC notice for the latest position before you rely on it.
Could the 31 March 2027 date change?
It might, because a Budget can change tax rules. GOV.UK still showed 31 March 2027 when we checked on 10 October 2026. Check GOV.UK before you rely on it.