0% VAT on Solar Ends in March 2027. Here’s Why Now Is the Time to Act
Right now, homeowners pay no VAT at all on solar panels and battery storage. That won’t last. The 0% rate ends on 31 March 2027, six months from today, and from 1 April installations go back to 5% VAT.
With the energy price cap rising again tomorrow, there’s a lot to think about this winter. Here’s what the VAT change means, what it could cost you to wait, and why autumn is the smart time to get the ball rolling.
What does the 0% VAT relief cover?
HMRC classes solar panels and home batteries as “energy saving materials”. When they’re supplied and installed in your home by an installer, the whole job is zero rated. That includes:
- Solar PV panels, along with the cabling, control equipment and inverter
- Battery storage fitted alongside new panels
- Batteries added to existing solar panels, which have qualified since February 2024
- Standalone batteries that charge from the grid on cheap overnight tariffs
One catch: the relief only applies when the kit is supplied and fitted together. Buy panels or a battery from a retailer on their own and you’ll pay the full 20%.
The zero rate runs until 31 March 2027. From 1 April 2027, it reverts to the reduced rate of 5%.
How much more could waiting cost?
Five per cent might not sound like much, but on a home energy system it adds up. Here’s what it would mean on a few example installation prices:
| Example installation | Price at 0% VAT | Price at 5% VAT | Extra cost |
|---|---|---|---|
| Solar panels only | £6,000 | £6,300 | £300 |
| Solar + battery | £10,000 | £10,500 | £500 |
| Larger solar + battery | £14,000 | £14,700 | £700 |
These are illustrative figures, not quotes, but the point stands. That extra money is the same as several months of electricity bills, and it buys you nothing. Install before the deadline and it stays in your pocket.
It also stacks up with everything else. Electricity prices are going up tomorrow and analysts are already forecasting another rise in January. The sooner your system is on the roof, the sooner you stop paying those rates for every unit you use.
Why book this autumn, not next March
Six months sounds like plenty of time. In practice, leaving it late is risky.
- Demand will spike. As the deadline gets closer, more homeowners will rush to get booked in. Installers’ diaries fill up and lead times stretch.
- Installs take planning. A proper job involves a survey, system design, sometimes a notification to your network operator, and scheduling scaffolding and the install itself. That takes weeks, not days.
- Weather can delay work. Winter storms and icy roofs can push installation dates back. Building in some slack protects you from missing the cut off.
- You’ll be ready for spring. Get installed over the autumn and winter and your system is up and running before the long, bright days arrive, when solar does its best work.
There’s no downside to getting a quote now. You’ll know exactly where you stand while the 0% rate is still available.
Don’t leave it to the last minute
The 0% VAT window, rising energy prices and the run up to spring all point the same way. If you’ve been thinking about solar or a battery, the next few months are the time to act.
We’ll recommend the right system for your home, led by the high efficiency AIKO Neostar 3N+ panel, with JA Solar and Trina as honest budget options and batteries from Hanchu, Fox ESS, Sigenergy and Tesla Powerwall. As an MCS, NAPIT, HIES and TrustMark accredited installer, we’ll handle everything properly from survey to sign off.
Beat the VAT deadline. Get your no obligation quote from Spectra Solar today.