0% VAT on Solar Ends March 2027
Solar panels and batteries installed with them are VAT-free in the UK until 31 March 2027. From 1 April 2027, VAT rises to 5% on these installations, under the same relief that has applied to energy-saving materials for several years. That is the whole rule: a fixed date on the calendar, not a countdown to panic about.
Key facts
- 0% VAT on solar panels and batteries installed with them, in force until 31 March 2027
- VAT rises to 5% from 1 April 2027, under gov.uk VAT Notice 708/6
- On a typical £6,000 to £12,000 install, 5% VAT works out at roughly £300 to £600 (illustrative range)
What is the 0% VAT deadline on solar?
Under VAT Notice 708/6, the UK government classes solar panels, and batteries installed at the same time as panels, as energy-saving materials. Installing them currently carries 0% VAT, meaning no VAT is added to the labour and materials cost of a qualifying installation. That relief is scheduled to end on 31 March 2027 [F7].
From 1 April 2027, the rate moves to 5%, the same reduced rate that has applied to this category of work in the past. There is no suggestion from HMRC of it returning to the full 20% standard rate, and no suggestion of the relief being extended again at this stage. The date itself comes directly from gov.uk guidance, not from an installer campaign.
Is this a sales deadline or a real tax change?
It is worth being direct about this: 31 March 2027 is a tax change written into gov.uk guidance, not a countdown sales tactic dressed up to create urgency. We are not going to tell you the sky is falling or that you have to decide this week. If you are planning solar for next year or the year after, this is simply one of the numbers to have in front of you when you work out timing, alongside your roof condition, your finances and your electricity usage.
Plenty of homes will still install perfectly sensibly after April 2027 at 5% VAT. A few percentage points on a project this size is real money, but it is one factor among several, not a reason to rush a decision you have not thought through.
How does VAT apply to battery storage installed with solar?
The 0% rate covers batteries installed as part of the same job as the solar panels, at the same time. That is the qualifying condition in VAT Notice 708/6: batteries fitted alongside a new or existing microgeneration system benefit from the same relief as the panels themselves [F7].
A battery added later, as a standalone job with no panels being installed at the same time, is assessed under its own rules within the same VAT notice, and the treatment can differ from a combined panels-plus-battery job. If you are weighing up whether to add a battery now or later, this is exactly the kind of question to raise with whoever quotes your job, so the VAT treatment is clear before you commit either way.
In practice, this means the order you do things in can matter for cost, not just for convenience. A single quote covering panels and battery together keeps everything under the current relief. Splitting the work into two separate jobs, with the battery following months or years later, moves that second job into its own VAT assessment, which is worth asking about up front rather than after the invoice arrives.
Does the VAT rate depend on where in the UK you live?
No. VAT Notice 708/6 is a UK-wide rule set by HMRC, so the 0% rate until 31 March 2027 and the move to 5% after that date apply the same way whether the installation is in Glasgow, Aberdeen, Edinburgh or anywhere else in the UK. There is no separate Scottish VAT rate for solar work, and no regional exemption or extension beyond the one national deadline [F7].
What does vary by area is the practical side of a job, things like roof type, planning rules in conservation areas and the local grid connection process. VAT is the one number on the quote that stays constant regardless of postcode.
Worked example: what 5% VAT means in pounds
Take a typical fully installed system in the £6,000 to £12,000 range, the range most Scottish homes fall into once panel count, battery size and roof complexity are factored in. At 0% VAT, that price is the price. At 5% VAT, the same job gains roughly £300 to £600 on top, depending on where in that range the system sits.
That figure is illustrative, based on typical system costs, not a quote for any specific home. Your own number depends on your roof, your panel count and whether a battery is included, which is why a proper survey and written quote matter more than any single figure on a page.
What this means for you
If you are already planning solar for the next year or so, the VAT change is one more data point, not a reason to make a rushed call. Getting the system size, roof suitability and finance right will affect your outcome far more than a few hundred pounds of VAT either way.
If your timeline naturally lands before 31 March 2027, you keep the 0% rate. If it lands after, you are looking at 5% on top of the installed price, which is worth building into your budgeting conversation. Either way, ask whoever quotes your job to confirm the VAT treatment in writing, including how any battery is being treated, so there are no surprises on the invoice.
A written quote should always show whether VAT has been applied and at what rate, regardless of which side of the deadline your install falls on. That is a normal, sensible thing to check on any quote, not a sign of urgency, and it means you can compare quotes on a like-for-like basis.
Curious what your own numbers would look like, VAT included? Have a look at current system costs, no obligation either way.
See current solar system costsFrequently asked questions
When does 0% VAT on solar end?
The 0% VAT relief on solar panel and battery installations runs until 31 March 2027. From 1 April 2027, VAT on these installations rises to 5%, under gov.uk VAT Notice 708/6.
Will solar VAT go back up to 20%?
No. From 1 April 2027 the rate moves to 5%, the reduced rate that has historically applied to energy-saving materials, not the standard 20% rate. There is no current indication from HMRC of a move to 20%.
Does the VAT change apply to battery storage as well as panels?
Yes, when the battery is installed at the same time as the solar panels. A battery fitted as a separate, later job is assessed under its own rules in the same VAT notice, so it is worth checking the treatment with your installer if you are considering adding a battery afterwards.
Should I rush to install solar before the VAT deadline?
Not on VAT alone. The date is a genuine tax change, not a sales deadline, and a few percentage points of VAT is one factor among several, including your roof, your budget and your finance options. It is worth knowing the date, not panicking about it.
How much extra will 5% VAT add to a solar install?
On a typical fully installed system priced between £6,000 and £12,000, 5% VAT adds roughly £300 to £600, depending on system size. This is an illustrative range, not a quote, since actual cost depends on your specific roof and system.
Does the VAT deadline apply everywhere in the UK, including Scotland?
Yes. VAT Notice 708/6 is set nationally by HMRC, so the same 0% rate until 31 March 2027 and 5% rate from 1 April 2027 apply across the whole UK, with no separate Scottish rate or regional variation.
Sources
Last verified: 20 July 2026. We re-check the facts on this page regularly; if a scheme or rate has changed since, the official source linked above is definitive.