Yes, there is currently a 0% VAT rate on qualifying energy-saving materials installed in residential properties in the UK.
How it applies:
- Solar panels — 0% VAT on supply and installation
- Solar + battery together — 0% VAT on both
- Standalone battery — 0% VAT. HMRC extended the zero rate to batteries installed on their own, or retrofitted to an existing system, from 1 February 2024.
- Heat pumps — 0% VAT on supply and installation
- EV chargers — standard 20% VAT applies
The zero rate on energy-saving materials was introduced in April 2022 and is currently set to run until 31 March 2027, after which it is due to revert to 5% unless the government extends it. On a £6,000 battery installation, the zero rate is worth around £1,000.
Commercial installations are treated differently. The zero rate covers residential properties and buildings used for a relevant charitable purpose, so business installations carry standard-rate VAT — though VAT-registered businesses can usually reclaim it.
We always give you a clear, fully-inclusive quote so you know exactly what you are paying.
