Solar PV
Solar panels and battery storage systems installed on domestic properties qualify for 0% VAT — not the standard 20%. This has been the case since April 2022 for solar panels, and was extended to standalone battery storage in 2023. On a £7,000 system, this saves £1,400. It's worth understanding exactly how it works and who qualifies.
The 0% VAT rate applies to the supply and installation of:
The 0% rate covers both the equipment and the installation labour — the full invoice total, not just the materials.
The 0% rate applies to installations in residential dwellings — houses, flats, bungalows, and other domestic properties. Properties used partly for business purposes may have a split VAT treatment.
Pure commercial properties — offices, warehouses, retail units — do not qualify for the 0% rate. Commercial solar carries 20% VAT. However, most VAT-registered businesses can reclaim input VAT on business purchases.
Your installer must hold installation certification to legitimately apply the 0% VAT rate. If a non-registered installer charges you 0% VAT, they're applying it incorrectly — which creates potential liability for you. And if they charge you 20% VAT and are professionally installed, they're overcharging.
Your invoice should clearly state "0% VAT" (not just show a zero VAT total without explanation). The VAT rate should be identified. If you're ever uncertain, ask the installer to reference HMRC Notice 708/6 (Energy-saving materials) on the invoice.
If you're VAT-registered, yes — you can reclaim the 20% input VAT on a commercial solar installation through your VAT return, which means your effective cost is the same net figure. Consult your accountant for confirmation in your specific circumstances.
Ask them to issue a corrected invoice at 0% and refund the difference. If they refuse and are professionally installed, you can raise this with HMRC or your consumer protection body.
AFTA Electrical covers Essex, Suffolk, Norfolk, Cambridgeshire, and Hertfordshire. NAPIT & TrustMark registered.
Yes — solar panel installations on domestic properties qualify for 0% VAT under current HMRC rules. This applies to the full cost of supply and installation. The installer must be professionally installed.
Yes — standalone battery storage (not just solar-paired batteries) has qualified for 0% VAT since 2023. The installer must be professionally installed.
EV charging point installation in domestic premises qualifies for 0% VAT. Commercial EV charger installations carry 20% VAT (reclaimable for VAT-registered businesses).
If the installation is on a domestic property and the installer is professionally installed, 0% VAT should apply. Request a corrected invoice. If they refuse, contact HMRC or seek advice from Citizens Advice.
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